Finance Debt

Comparison of Bread Financial (BFH) and the competition


Bread Financial (NYSE: BFHGet a rating) is one of 226 SOEs in the “Business Services, Not Elsewhere Classified” sector, but how does it stack up against its peers? We’ll compare Bread Financial to similar companies based on earnings strength, dividends, analyst recommendations, risk, profitability, valuation and institutional ownership.

Profitability

This table compares the net margins, return on equity and return on assets of Bread Financial and its peers.

Net margins Return on equity return on assets
bread financial 19.75% 43.42% 4.07%
Financial competitors of bread -15.21% -19.30% -6.83%

Dividends

Bread Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.5%. Bread Financial pays 5.2% of its profits as a dividend. As a group, the “Business Services, Not Elsewhere Classified” companies pay a dividend yield of 1.4% and pay out 23.9% of their earnings as dividends. Bread Financial is clearly a better dividend-paying stock than its peers, given its higher yield and lower payout ratio.

Analyst Notes

This is a summary of current recommendations for Bread Financial and its peers, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
bread financial 0 0 0 0 N / A
Financial competitors of bread 1349 6770 12152 345 2.56

As a group, companies in “Business Services, Not Elsewhere Classified” have an upside potential of 47.85%. Given that Bread Financial’s peers are more bullish, analysts clearly believe that Bread Financial has less favorable growth aspects than its peers.

Insider and Institutional Ownership

100.0% of Bread Financial shares are held by institutional investors. In comparison, 59.2% of the shares of all “Business services, not elsewhere classified” companies are held by institutional investors. 0.2% of Bread Financial shares are held by insiders. By comparison, 14.3% of the shares of all “Business Services, Not Elsewhere Classified” companies are held by insiders. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a company will outperform the market over the long term.

Volatility and risk

Bread Financial has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500. In comparison, Bread Financial’s peers have a beta of 0.97, indicating that its stock price average is 3% less volatile than the S&P 500.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of Bread Financial and its peers.

Gross revenue Net revenue Price/earnings ratio
bread financial $3.27 billion $801.00 million 3.47
Financial competitors of bread $3.25 billion $493.13 million -60,204.99

Bread Financial has higher revenues and profits than its peers. Bread Financial trades at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Bread Financial beats its peers on 10 of the 12 factors compared.

About Bread Financial (Get a rating)

Bread Financial Holdings Inc. provides term payment and lending technology solutions to clients and consumer industries in North America. It provides credit card and other loan financing services, including risk management solutions, account creation and financing services for approximately 130 private label and co-branded credit card programs, as well as through the through Bread partnerships to approximately 500 small and medium enterprises. merchants; and Comenity branded general purpose cash back credit. The Company also manages and administers the loans it issues for private label, co-branded and general purpose credit card programs and Bread BNPL products (installment loans, split payment); and provides marketing, data and analytics services. Additionally, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promoting credit payment options earlier in the shopping experience. Additionally, the company, through Bread, a digital payment platform and robust suite of application programming interfaces, enables merchants and partners to integrate online point-of-sale financing and other digital payment products, including installment and split payment 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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