ALLY vs. BRK-B: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALLY and BRK-B, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BRK-B’s market capitalization of 1,047.52 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 0.84 for BRK-B, both stocks show similar sensitivity to overall market movements.
| Symbol | ALLY | BRK-B |
|---|---|---|
| Company Name | Ally Financial Inc. | Berkshire Hathaway Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Credit Services | Insurance - Diversified |
| CEO | Michael G. Rhodes | Warren E. Buffett |
| Price | 41.21 USD | 485 USD |
| Market Cap | 12.66 billion USD | 1,047.52 billion USD |
| Beta | 1.12 | 0.84 |
| Exchange | NYSE | NYSE |
| IPO Date | January 28, 2014 | May 9, 1996 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALLY and BRK-B 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.
BRK-B
12.77%
Insurance - Diversified Industry
- Max
- 19.59%
- Q3
- 17.66%
- Median
- 12.77%
- Q1
- 7.56%
- Min
- -4.43%
BRK-B’s Return on Equity of 12.77% is on par with the norm for the Insurance - Diversified 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.
BRK-B
7.95%
Insurance - Diversified Industry
- Max
- 32.46%
- Q3
- 16.21%
- Median
- 9.46%
- Q1
- 2.09%
- Min
- -10.51%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Diversified industry.
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.
BRK-B
21.07%
Insurance - Diversified Industry
- Max
- 26.00%
- Q3
- 19.46%
- Median
- 9.37%
- Q1
- 5.55%
- Min
- -7.05%
A Net Profit Margin of 21.07% places BRK-B in the upper quartile for the Insurance - Diversified industry, signifying strong profitability and more effective cost management than most of its peers.
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.
BRK-B
25.62%
Insurance - Diversified Industry
- Max
- 44.52%
- Q3
- 25.84%
- Median
- 14.16%
- Q1
- 6.78%
- Min
- -2.60%
BRK-B’s Operating Profit Margin of 25.62% is around the midpoint for the Insurance - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ALLY | BRK-B |
|---|---|---|
| Return on Equity (TTM) | 2.02% | 12.77% |
| Return on Assets (TTM) | 0.15% | 6.95% |
| Return on Invested Capital (TTM) | 0.72% | 7.95% |
| Net Profit Margin (TTM) | 1.82% | 21.07% |
| Operating Profit Margin (TTM) | 2.43% | 25.62% |
| Gross Profit Margin (TTM) | 42.12% | 39.00% |
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.
BRK-B
2.87
Insurance - Diversified Industry
- Max
- 4.41
- Q3
- 4.03
- Median
- 2.86
- Q1
- 2.82
- Min
- 2.82
BRK-B’s Current Ratio of 2.87 aligns with the median group of the Insurance - Diversified industry, indicating that its short-term liquidity is in line with its sector 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.
BRK-B
0.19
Insurance - Diversified Industry
- Max
- 0.54
- Q3
- 0.39
- Median
- 0.27
- Q1
- 0.21
- Min
- 0.13
Falling into the lower quartile for the Insurance - Diversified industry, BRK-B’s Debt-to-Equity Ratio of 0.19 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.
BRK-B
19.13
Insurance - Diversified Industry
- Max
- 19.23
- Q3
- 17.46
- Median
- 7.97
- Q1
- 4.61
- Min
- -1.63
BRK-B’s Interest Coverage Ratio of 19.13 is in the upper quartile for the Insurance - Diversified industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ALLY | BRK-B |
|---|---|---|
| Current Ratio (TTM) | 0.20 | 2.87 |
| Quick Ratio (TTM) | 0.20 | 2.72 |
| Debt-to-Equity Ratio (TTM) | 1.40 | 0.19 |
| Debt-to-Asset Ratio (TTM) | 0.10 | 0.11 |
| Net Debt-to-EBITDA Ratio (TTM) | 5.83 | 0.71 |
| Interest Coverage Ratio (TTM) | 0.05 | 19.13 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALLY and BRK-B. 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.
BRK-B
0.00%
Insurance - Diversified Industry
- Max
- 8.16%
- Q3
- 5.54%
- Median
- 2.46%
- Q1
- 1.59%
- Min
- 0.00%
BRK-B currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
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.
BRK-B
0.00%
Insurance - Diversified Industry
- Max
- 101.86%
- Q3
- 53.36%
- Median
- 21.69%
- Q1
- 5.33%
- Min
- 0.00%
BRK-B has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | ALLY | BRK-B |
|---|---|---|
| Dividend Yield (TTM) | 2.91% | 0.00% |
| Dividend Payout Ratio (TTM) | 169.58% | 0.00% |
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.
BRK-B
12.93
Insurance - Diversified Industry
- Max
- 18.52
- Q3
- 16.13
- Median
- 13.33
- Q1
- 9.73
- Min
- 2.62
BRK-B’s P/E Ratio of 12.93 is within the middle range for the Insurance - Diversified industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
BRK-B
2.59
Insurance - Diversified Industry
- Max
- 2.60
- Q3
- 2.07
- Median
- 1.20
- Q1
- 0.77
- Min
- 0.04
A Forward PEG Ratio of 2.59 places BRK-B in the upper quartile for the Insurance - Diversified industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
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.
BRK-B
2.73
Insurance - Diversified Industry
- Max
- 3.08
- Q3
- 2.00
- Median
- 1.15
- Q1
- 1.07
- Min
- 0.38
BRK-B’s P/S Ratio of 2.73 is in the upper echelon for the Insurance - Diversified 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.
BRK-B
1.60
Insurance - Diversified Industry
- Max
- 2.12
- Q3
- 1.80
- Median
- 1.59
- Q1
- 1.29
- Min
- 0.74
BRK-B’s P/B Ratio of 1.60 is within the conventional range for the Insurance - Diversified 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.
Valuation at a Glance
| Symbol | ALLY | BRK-B |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 44.52 | 12.93 |
| Forward PEG Ratio (TTM) | 1.44 | 2.59 |
| Price-to-Sales Ratio (P/S, TTM) | 0.81 | 2.73 |
| Price-to-Book Ratio (P/B, TTM) | 0.89 | 1.60 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.03 | 86.82 |
| EV-to-EBITDA (TTM) | 13.59 | 9.59 |
| EV-to-Sales (TTM) | 1.41 | 2.95 |