Bread Financial Holdings, Inc. (BFH) vs The Western Union Company (WU)

Bread Financial Holdings, Inc. and The Western Union Company are both Credit Services companies. Bread Financial Holdings, Inc. is the larger, with a market value of $3.9B against $1.9B — 2.0× the size. The Western Union Company trades at the lower P/E: 5.0× against 7.9×. Bread Financial Holdings, Inc. grew revenue faster over the last twelve months: 0.72% against −1.63%. Bread Financial Holdings, Inc. has the higher net margin (11.9% vs 9.79%) and the lower return on invested capital (0.00% vs 14.9%). Both pay a dividend; The Western Union Company yields more (15.2% vs 0.90%). Across the 21 metrics below, Bread Financial Holdings, Inc. leads on 14 and The Western Union Company on 7.

Valuation

Metric BFH WU Credit Services median
P/E 7.91 4.95 9.39
P/S 0.86 0.48 0.86
P/B 1.22 2.12 1.16
Price to free cash flow 1.89 4.57 2.78
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 12.64% 20.19% 6.55%
Free cash flow yield 53.03% 21.90% 12.26%

Profitability

Metric BFH WU Credit Services median
Gross margin 100.00% 35.09% 77.13%
Operating margin 76.34% 15.91% 0.34%
Net margin 11.87% 9.79% 9.25%
Free cash flow margin 45.67% 10.51% 12.91%
Return on equity 17.27% 43.97% 8.49%
Return on assets 2.55% 4.96% 2.16%
Return on invested capital 0.00% 14.91% 4.09%

Growth

Metric BFH WU Credit Services median
Revenue growth (TTM) 0.72% (1.63%) 4.62%
EPS growth (last fiscal year) 98.36% (44.53%) 21.94%
Revenue growth, 5-year CAGR 4.34% (3.48%) 9.13%
Net income growth, 5-year CAGR 19.34% (7.66%) 0.00%

Health

Metric BFH WU Credit Services median
Debt to equity 0.98 2.95 0.68
Current ratio 1.17 1.12 1.55
Net debt to EBITDA (4.25) 1.78 0.13

Dividend

Metric BFH WU Credit Services median
Dividend yield 0.90% 15.19% 1.64%
Payout ratio 0.07 0.76 0.22

Size

Metric BFH WU Credit Services median
Market cap 3.89b 1.94b 751.08m

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