ALLY vs. BLK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALLY and BLK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BLK’s market capitalization of 167.65 billion USD is significantly greater than ALLY’s 12.66 billion USD, highlighting its more substantial market valuation.
With betas of 1.12 for ALLY and 1.42 for BLK, both stocks show similar sensitivity to overall market movements.
| Symbol | ALLY | BLK |
|---|---|---|
| Company Name | Ally Financial Inc. | BlackRock, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Credit Services | Asset Management |
| CEO | Michael G. Rhodes | Laurence Douglas Fink |
| Price | 41.21 USD | 1,082.15 USD |
| Market Cap | 12.66 billion USD | 167.65 billion USD |
| Beta | 1.12 | 1.42 |
| Exchange | NYSE | NYSE |
| IPO Date | January 28, 2014 | October 1, 1999 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALLY and BLK by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ALLY
2.02%
Financial - Credit Services Industry
- Max
- 34.05%
- Q3
- 18.70%
- Median
- 10.57%
- Q1
- 3.55%
- Min
- -12.12%
ALLY’s Return on Equity of 2.02% is in the lower quartile for the Financial - Credit Services industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
BLK
14.27%
Asset Management Industry
- Max
- 34.25%
- Q3
- 18.22%
- Median
- 11.24%
- Q1
- 5.81%
- Min
- -5.72%
BLK’s Return on Equity of 14.27% is on par with the norm for the Asset Management industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ALLY
0.72%
Financial - Credit Services Industry
- Max
- 68.11%
- Q3
- 32.26%
- Median
- 9.52%
- Q1
- 3.37%
- Min
- -7.03%
Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Credit Services industry.
BLK
4.35%
Asset Management Industry
- Max
- 42.18%
- Q3
- 20.06%
- Median
- 8.68%
- Q1
- 3.13%
- Min
- -16.42%
BLK’s Return on Invested Capital of 4.35% is in line with the norm for the Asset Management industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
ALLY
1.82%
Financial - Credit Services Industry
- Max
- 39.42%
- Q3
- 20.10%
- Median
- 12.91%
- Q1
- 5.82%
- Min
- -14.80%
Falling into the lower quartile for the Financial - Credit Services industry, ALLY’s Net Profit Margin of 1.82% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
BLK
29.84%
Asset Management Industry
- Max
- 91.66%
- Q3
- 57.81%
- Median
- 29.48%
- Q1
- 15.70%
- Min
- -27.65%
BLK’s Net Profit Margin of 29.84% is aligned with the median group of its peers in the Asset Management industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ALLY
2.43%
Financial - Credit Services Industry
- Max
- 77.26%
- Q3
- 42.86%
- Median
- 17.99%
- Q1
- 10.82%
- Min
- -14.94%
ALLY’s Operating Profit Margin of 2.43% is in the lower quartile for the Financial - Credit Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
BLK
36.71%
Asset Management Industry
- Max
- 99.76%
- Q3
- 78.28%
- Median
- 34.76%
- Q1
- 21.75%
- Min
- -48.25%
BLK’s Operating Profit Margin of 36.71% is around the midpoint for the Asset Management industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ALLY | BLK |
|---|---|---|
| Return on Equity (TTM) | 2.02% | 14.27% |
| Return on Assets (TTM) | 0.15% | 4.44% |
| Return on Invested Capital (TTM) | 0.72% | 4.35% |
| Net Profit Margin (TTM) | 1.82% | 29.84% |
| Operating Profit Margin (TTM) | 2.43% | 36.71% |
| Gross Profit Margin (TTM) | 42.12% | 65.72% |
Financial Strength
Current Ratio
ALLY
0.20
Financial - Credit Services Industry
- Max
- 8.15
- Q3
- 4.39
- Median
- 2.62
- Q1
- 1.06
- Min
- 0.15
For the Financial - Credit Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
BLK
12.36
Asset Management Industry
- Max
- 12.44
- Q3
- 5.76
- Median
- 3.04
- Q1
- 1.03
- Min
- 0.01
BLK’s Current Ratio of 12.36 is in the upper quartile for the Asset Management industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio
ALLY
1.40
Financial - Credit Services Industry
- Max
- 4.69
- Q3
- 2.55
- Median
- 1.20
- Q1
- 0.55
- Min
- 0.00
ALLY’s Debt-to-Equity Ratio of 1.40 is typical for the Financial - Credit Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
BLK
0.30
Asset Management Industry
- Max
- 2.62
- Q3
- 1.42
- Median
- 0.76
- Q1
- 0.34
- Min
- 0.01
Falling into the lower quartile for the Asset Management industry, BLK’s Debt-to-Equity Ratio of 0.30 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
ALLY
0.05
Financial - Credit Services Industry
- Max
- 17.48
- Q3
- 7.42
- Median
- 1.59
- Q1
- 0.38
- Min
- -7.77
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Credit Services industry.
BLK
16.94
Asset Management Industry
- Max
- 13.30
- Q3
- 6.30
- Median
- 2.71
- Q1
- 1.00
- Min
- -6.91
With an Interest Coverage Ratio of 16.94, BLK demonstrates a superior capacity to service its debt, placing it well above the typical range for the Asset Management industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ALLY | BLK |
|---|---|---|
| Current Ratio (TTM) | 0.20 | 12.36 |
| Quick Ratio (TTM) | 0.20 | 12.36 |
| Debt-to-Equity Ratio (TTM) | 1.40 | 0.30 |
| Debt-to-Asset Ratio (TTM) | 0.10 | 0.10 |
| Net Debt-to-EBITDA Ratio (TTM) | 5.83 | 0.80 |
| Interest Coverage Ratio (TTM) | 0.05 | 16.94 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALLY and BLK. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ALLY
2.91%
Financial - Credit Services Industry
- Max
- 14.68%
- Q3
- 2.97%
- Median
- 1.03%
- Q1
- 0.00%
- Min
- 0.00%
ALLY’s Dividend Yield of 2.91% is consistent with its peers in the Financial - Credit Services industry, providing a dividend return that is standard for its sector.
BLK
1.91%
Asset Management Industry
- Max
- 26.09%
- Q3
- 11.60%
- Median
- 6.37%
- Q1
- 2.75%
- Min
- 0.00%
BLK’s Dividend Yield of 1.91% is in the lower quartile for the Asset Management industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio
ALLY
169.58%
Financial - Credit Services Industry
- Max
- 169.58%
- Q3
- 38.15%
- Median
- 18.30%
- Q1
- 0.00%
- Min
- 0.00%
ALLY’s Dividend Payout Ratio of 169.58% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
BLK
49.86%
Asset Management Industry
- Max
- 1,034.88%
- Q3
- 127.70%
- Median
- 75.15%
- Q1
- 34.21%
- Min
- 0.00%
BLK’s Dividend Payout Ratio of 49.86% is within the typical range for the Asset Management industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ALLY | BLK |
|---|---|---|
| Dividend Yield (TTM) | 2.91% | 1.91% |
| Dividend Payout Ratio (TTM) | 169.58% | 49.86% |
Valuation
Price-to-Earnings Ratio
ALLY
44.52
Financial - Credit Services Industry
- Max
- 42.04
- Q3
- 25.88
- Median
- 12.28
- Q1
- 9.55
- Min
- 3.09
At 44.52, ALLY’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial - Credit Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
BLK
26.60
Asset Management Industry
- Max
- 38.72
- Q3
- 23.40
- Median
- 11.45
- Q1
- 8.80
- Min
- 1.54
A P/E Ratio of 26.60 places BLK in the upper quartile for the Asset Management industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Forward P/E to Growth Ratio
ALLY
1.44
Financial - Credit Services Industry
- Max
- 2.76
- Q3
- 1.57
- Median
- 0.82
- Q1
- 0.51
- Min
- 0.06
ALLY’s Forward PEG Ratio of 1.44 is within the middle range of its peers in the Financial - Credit Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
BLK
-0.27
Asset Management Industry
- Max
- 6.38
- Q3
- 3.23
- Median
- 1.55
- Q1
- 0.89
- Min
- 0.02
BLK has a negative Forward PEG Ratio of -0.27. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
Price-to-Sales Ratio
ALLY
0.81
Financial - Credit Services Industry
- Max
- 6.24
- Q3
- 3.02
- Median
- 1.54
- Q1
- 0.75
- Min
- 0.32
The P/S Ratio is often not a primary valuation tool in the Financial - Credit Services industry.
BLK
7.93
Asset Management Industry
- Max
- 13.75
- Q3
- 7.92
- Median
- 4.87
- Q1
- 3.51
- Min
- 0.02
BLK’s P/S Ratio of 7.93 is in the upper echelon for the Asset Management industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
ALLY
0.89
Financial - Credit Services Industry
- Max
- 3.58
- Q3
- 2.84
- Median
- 1.28
- Q1
- 0.84
- Min
- 0.07
ALLY’s P/B Ratio of 0.89 is within the conventional range for the Financial - Credit Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
BLK
3.49
Asset Management Industry
- Max
- 5.33
- Q3
- 2.75
- Median
- 1.06
- Q1
- 0.87
- Min
- 0.00
The P/B Ratio is often not a primary valuation metric for the Asset Management industry.
Valuation at a Glance
| Symbol | ALLY | BLK |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 44.52 | 26.60 |
| Forward PEG Ratio (TTM) | 1.44 | -0.27 |
| Price-to-Sales Ratio (P/S, TTM) | 0.81 | 7.93 |
| Price-to-Book Ratio (P/B, TTM) | 0.89 | 3.49 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.03 | 42.26 |
| EV-to-EBITDA (TTM) | 13.59 | 21.37 |
| EV-to-Sales (TTM) | 1.41 | 8.24 |