Financial Bread (NYSE:BFH – get rating) and eBay (NASDAQ: EBAY – get rating) are both business service companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation, and analyst recommendations.
Risk and Volatility
Bread Financial has a beta of 2.12, meaning its share price is 112% more volatile than the S&P 500. For comparison, eBay has a beta of 1.16, meaning its share price it 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 out 5.2% of its earnings as a dividend. eBay pays out 4.3% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for years to come. eBay has increased its dividend for 3 years in a row. eBay is clearly the best dividend stock, given its higher yield and longer history of dividend growth.
Internal and institutional property
100.0% of Bread Financial’s shares are held by institutional investors. Comparatively, 83.0% of eBay shares are held by institutional investors. 0.2% of Bread Financial shares are held by insiders of the company. Comparatively, 0.2% of eBay shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments, and big money managers believe a stock will outperform the market over the long term.
This table 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||retention ratings||Buy grades||Strong purchase ratings||Rating Score|
eBay has a consensus price target of $69.88, suggesting 29.05% upside potential. Given eBay’s larger potential upside, analysts clearly believe that eBay is more favorable than Bread Financial.
Earnings and Valuation
This table compares the gross receipts, earnings per share, and valuation of Bread Financial and eBay.
|Gross income||Price/Sales Ratio||Net income||earnings per share||Rate of earnings on price|
|Financial Bread||$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-earnings ratio than Bread Financial, indicating that it is currently the more affordable of the two stocks.
eBay outperforms Bread Financial in 12 of 16 factors compared between the two stocks.
About Pan Financiero (get rating)
Bread Financial Holdings Inc. provides advanced technology loan and payment solutions to customers and consumer-based industries in North America. Provides credit card and other loan financing services, including risk management solutions, account origination, and financing services for approximately 130 private-label and co-branded credit card programs, as well as through Bread a approximately 500 small and medium businesses. merchants; and Comenity brand 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 Payment) products; 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 and promotes credit payment options earlier in the shopping experience. In addition, the company through Bread, a digital payments platform and a robust set 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 previously 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 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 eBay’s suite of mobile applications. Its platforms allow users to list, buy, sell, and pay for items through various online, mobile, and offline channels including retailers, distributors, liquidators, import-export companies, auctioneers, catalog companies, and mail order. , directories, search engines. , merchant participants, purchasing channels and networks. The company was founded in 1995 and is headquartered in San Jose, California.
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