Financial Analysis: Bread Financial (BFH) & Its Rivals


Bread Financial (NYSE: BFH – Get Rating) is one of 226 publicly-traded companies in the “Business services, not elsewhere classified” industry, but how does it weigh in compared to its rivals? We will compare Bread Financial to similar businesses based on the strength of its earnings, institutional ownership, analyst recommendations, risk, profitability, dividends and valuation.

Risk and Volatility

Bread Financial has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500. Comparatively, Bread Financial’s rivals have a beta of 1.04, meaning that their average share price is 4% more volatile than the S&P 500.

Insider & Institutional Ownership

99.4% of Bread Financial shares are owned by institutional investors. Comparatively, 59.8% of shares of all “Business services, not elsewhere classified” companies are owned by institutional investors. 0.2% of Bread Financial shares are owned by insiders. Comparatively, 13.9% of shares of all “Business services, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Bread Financial and its rivals, as provided by MarketBeat.com.

Sell ​​Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bread Financial 0 0 0 0 ON
Bread Financial Competitors 1390 6845 12208 346 2.55

As a group, “Business services, not elsewhere classified” companies have a potential upside of 56.05%. Given Bread Financial’s rivals higher possible upside, analysts clearly believe Bread Financial has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Bread Financial and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price / Earnings Ratio
Bread Financial $ 3.27 billion $ 801.00 million 3.52
Bread Financial Competitors $ 3.24 billion $ 429.38 million 15.53

Bread Financial has higher revenue and earnings than its rivals. Bread Financial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Bread Financial pays an annual dividend of $ 0.84 per share and has a dividend yield of 1.6%. Bread Financial pays out 5.8% of its earnings in the form of a dividend. As a group, “Business services, not elsewhere classified” companies pay a dividend yield of 1.3% and pay out 26.5% of their earnings in the form of a dividend. Bread Financial is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares Bread Financial and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bread Financial 18.26% 36.46% 3.63%
Bread Financial Competitors -14.09% -16.91% -6.52%

Summary

Bread Financial beats its rivals on 9 of the 12 factors compared.

Bread Financial Company Profile (Get Rating)

Bread Financial Holdings Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for approximately 130 private label and co-brand credit card programs, as well as through Bread partnerships to approximately 500 small-and medium-sized businesses merchants; and Comenity-branded general purpose cash-back credit. The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs and Bread BNPL (installment loans, split-pay) products; and provides marketing, and data and analytics services. In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience. Further, the company through Bread, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products, including installment and split-pay solutions. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings Inc. in March 2022. Bread Financial Holdings Inc. was founded in 1996 and is headquartered in Columbus, Ohio.



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