ALLY vs. ERIE: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALLY and ERIE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ALLY’s market capitalization stands at 12.66 billion USD, while ERIE’s is 16.02 billion USD, indicating their market valuations are broadly comparable.
ALLY’s beta of 1.12 points to significantly higher volatility compared to ERIE (beta: 0.36), suggesting ALLY has greater potential for both gains and losses relative to market movements.
| Symbol | ALLY | ERIE |
|---|---|---|
| Company Name | Ally Financial Inc. | Erie Indemnity Company |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Credit Services | Insurance - Brokers |
| CEO | Michael G. Rhodes | Timothy Gerard NeCastro C.I.C., CPA |
| Price | 41.21 USD | 346.94 USD |
| Market Cap | 12.66 billion USD | 16.02 billion USD |
| Beta | 1.12 | 0.36 |
| Exchange | NYSE | NASDAQ |
| IPO Date | January 28, 2014 | October 2, 1995 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALLY and ERIE 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.
ERIE
31.37%
Insurance - Brokers Industry
- Max
- 40.40%
- Q3
- 30.52%
- Median
- 22.48%
- Q1
- 4.38%
- Min
- -5.38%
In the upper quartile for the Insurance - Brokers industry, ERIE’s Return on Equity of 31.37% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
ERIE
26.02%
Insurance - Brokers Industry
- Max
- 11.62%
- Q3
- 11.18%
- Median
- 8.38%
- Q1
- 2.57%
- Min
- -1.51%
ERIE’s Return on Invested Capital of 26.02% is exceptionally high, placing it well beyond the typical range for the Insurance - Brokers industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
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.
ERIE
18.52%
Insurance - Brokers Industry
- Max
- 21.33%
- Q3
- 15.86%
- Median
- 10.63%
- Q1
- 1.06%
- Min
- -2.28%
A Net Profit Margin of 18.52% places ERIE in the upper quartile for the Insurance - Brokers 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.
ERIE
21.46%
Insurance - Brokers Industry
- Max
- 28.73%
- Q3
- 23.24%
- Median
- 21.46%
- Q1
- 10.89%
- Min
- 5.35%
ERIE’s Operating Profit Margin of 21.46% is around the midpoint for the Insurance - Brokers industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ALLY | ERIE |
|---|---|---|
| Return on Equity (TTM) | 2.02% | 31.37% |
| Return on Assets (TTM) | 0.15% | 20.69% |
| Return on Invested Capital (TTM) | 0.72% | 26.02% |
| Net Profit Margin (TTM) | 1.82% | 18.52% |
| Operating Profit Margin (TTM) | 2.43% | 21.46% |
| Gross Profit Margin (TTM) | 42.12% | 51.14% |
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.
ERIE
1.38
Insurance - Brokers Industry
- Max
- 1.90
- Q3
- 1.76
- Median
- 1.29
- Q1
- 1.14
- Min
- 1.05
ERIE’s Current Ratio of 1.38 aligns with the median group of the Insurance - Brokers 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.
ERIE
0.01
Insurance - Brokers Industry
- Max
- 4.59
- Q3
- 2.12
- Median
- 0.59
- Q1
- 0.07
- Min
- 0.01
Falling into the lower quartile for the Insurance - Brokers industry, ERIE’s Debt-to-Equity Ratio of 0.01 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.
ERIE
--
Insurance - Brokers Industry
- Max
- 29.40
- Q3
- 16.65
- Median
- 7.25
- Q1
- 4.20
- Min
- 1.60
Interest Coverage Ratio data for ERIE is currently unavailable.
Financial Strength at a Glance
| Symbol | ALLY | ERIE |
|---|---|---|
| Current Ratio (TTM) | 0.20 | 1.38 |
| Quick Ratio (TTM) | 0.20 | 1.38 |
| Debt-to-Equity Ratio (TTM) | 1.40 | 0.01 |
| Debt-to-Asset Ratio (TTM) | 0.10 | 0.00 |
| Net Debt-to-EBITDA Ratio (TTM) | 5.83 | -0.42 |
| Interest Coverage Ratio (TTM) | 0.05 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALLY and ERIE. 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.
ERIE
1.52%
Insurance - Brokers Industry
- Max
- 2.63%
- Q3
- 1.34%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.52%, ERIE offers a more attractive income stream than most of its peers in the Insurance - Brokers industry, signaling a strong commitment to shareholder returns.
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.
ERIE
39.35%
Insurance - Brokers Industry
- Max
- 45.22%
- Q3
- 39.19%
- Median
- 29.49%
- Q1
- 3.85%
- Min
- 0.00%
ERIE’s Dividend Payout Ratio of 39.35% is in the upper quartile for the Insurance - Brokers industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ALLY | ERIE |
|---|---|---|
| Dividend Yield (TTM) | 2.91% | 1.52% |
| Dividend Payout Ratio (TTM) | 169.58% | 39.35% |
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.
ERIE
29.54
Insurance - Brokers Industry
- Max
- 45.50
- Q3
- 35.20
- Median
- 30.00
- Q1
- 28.34
- Min
- 26.42
ERIE’s P/E Ratio of 29.54 is within the middle range for the Insurance - Brokers 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.
ERIE
2.94
Insurance - Brokers Industry
- Max
- 3.32
- Q3
- 3.00
- Median
- 2.77
- Q1
- 2.41
- Min
- 2.09
ERIE’s Forward PEG Ratio of 2.94 is within the middle range of its peers in the Insurance - Brokers industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
ERIE
4.83
Insurance - Brokers Industry
- Max
- 7.38
- Q3
- 5.34
- Median
- 4.27
- Q1
- 2.32
- Min
- 0.27
ERIE’s P/S Ratio of 4.83 aligns with the market consensus for the Insurance - Brokers industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
ERIE
8.78
Insurance - Brokers Industry
- Max
- 10.90
- Q3
- 8.10
- Median
- 6.93
- Q1
- 4.15
- Min
- 1.12
ERIE’s P/B Ratio of 8.78 is in the upper tier for the Insurance - Brokers industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | ALLY | ERIE |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 44.52 | 29.54 |
| Forward PEG Ratio (TTM) | 1.44 | 2.94 |
| Price-to-Sales Ratio (P/S, TTM) | 0.81 | 4.83 |
| Price-to-Book Ratio (P/B, TTM) | 0.89 | 8.78 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.03 | 31.42 |
| EV-to-EBITDA (TTM) | 13.59 | 30.09 |
| EV-to-Sales (TTM) | 1.41 | 4.77 |