Bread Financial (NYSE: BFH – Get a rating) and eBay (NASDAQ: EBAY – Get a rating) are both business services companies, but which company is superior? We’ll compare the two companies based on their dividend strength, earnings, institutional ownership, risk, profitability, valuation, and analyst recommendations.
Risk and Volatility
Bread Financial has a beta of 2.12, which means its stock price is 112% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.16, which means its stock price is 16% more volatile than the S&P 500.
Bread Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.5%. eBay pays an annual dividend of $0.88 per share and has a dividend yield of 1.6%. Bread Financial pays 5.2% of its profits as a dividend. eBay pays 4.3% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. eBay has increased its dividend for 3 consecutive years. eBay is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
100.0% of Bread Financial shares are held by institutional investors. By comparison, 83.0% of eBay shares are held by institutional investors. 0.2% of Bread Financial shares are held by insiders of the company. By comparison, 0.2% of eBay shares are held by company insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock will outperform the market over the long term.
This chart compares the net margins, return on equity, and return on assets of Bread Financial and eBay.
|Net margins||Return on equity||return on assets|
This is a breakdown of the current recommendations for Bread Financial and eBay, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|bread financial||0||0||0||0||N / A|
eBay has a consensus price target of $69.88, suggesting a potential upside of 29.05%. Given eBay’s higher possible upside, analysts clearly believe that eBay is more favorable than Bread Financial.
Benefits and evaluation
This chart compares gross revenue, earnings per share, and valuation of Bread Financial and eBay.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|bread financial||$3.27 billion||0.84||$801.00 million||$16.02||3.44|
|eBay||$10.42 billion||3.05||$13.61 billion||$20.25||2.67|
eBay has higher revenue and profit than Bread Financial. eBay trades at a lower price-to-earnings ratio than Bread Financial, indicating that it is currently the more affordable of the two stocks.
eBay beats Bread Financial on 12 out of 16 factors compared between the two stocks.
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.
About eBay (Get a rating)
eBay Inc. operates marketplace platforms that connect buyers and sellers in the United States and internationally. The company’s Marketplace platform includes its online marketplace at ebay.com and the eBay mobile app suite. Its platforms allow users to list, buy, sell and pay for items through various online, mobile and offline channels, including retailers, distributors, liquidators, import companies and export, auctioneers, catalog and mail order companies, directories, search engines. , trade participants, buying channels and networks. The company was founded in 1995 and is based in San Jose, California.
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