ALLY vs. JEF: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALLY and JEF, 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 JEF’s is 11.74 billion USD, indicating their market valuations are broadly comparable.
With betas of 1.12 for ALLY and 1.42 for JEF, both stocks show similar sensitivity to overall market movements.
| Symbol | ALLY | JEF |
|---|---|---|
| Company Name | Ally Financial Inc. | Jefferies Financial Group Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Credit Services | Financial - Capital Markets |
| CEO | Michael G. Rhodes | Richard Brian Handler |
| Price | 41.21 USD | 56.94 USD |
| Market Cap | 12.66 billion USD | 11.74 billion USD |
| Beta | 1.12 | 1.42 |
| Exchange | NYSE | NYSE |
| IPO Date | January 28, 2014 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALLY and JEF 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.
JEF
8.36%
Financial - Capital Markets Industry
- Max
- 42.02%
- Q3
- 20.69%
- Median
- 13.73%
- Q1
- 3.33%
- Min
- -21.32%
JEF’s Return on Equity of 8.36% is on par with the norm for the Financial - Capital Markets 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.
JEF
14,569.61%
Financial - Capital Markets Industry
- Max
- 30.24%
- Q3
- 13.34%
- Median
- 6.20%
- Q1
- -1.71%
- Min
- -16.91%
Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Capital Markets 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.
JEF
6.11%
Financial - Capital Markets Industry
- Max
- 28.67%
- Q3
- 13.52%
- Median
- 10.47%
- Q1
- 0.24%
- Min
- -9.55%
JEF’s Net Profit Margin of 6.11% is aligned with the median group of its peers in the Financial - Capital Markets 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.
JEF
25.29%
Financial - Capital Markets Industry
- Max
- 56.86%
- Q3
- 25.29%
- Median
- 15.90%
- Q1
- 0.51%
- Min
- -19.18%
JEF’s Operating Profit Margin of 25.29% is around the midpoint for the Financial - Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ALLY | JEF |
|---|---|---|
| Return on Equity (TTM) | 2.02% | 8.36% |
| Return on Assets (TTM) | 0.15% | 945.28% |
| Return on Invested Capital (TTM) | 0.72% | 14569.61% |
| Net Profit Margin (TTM) | 1.82% | 6.11% |
| Operating Profit Margin (TTM) | 2.43% | 25.29% |
| Gross Profit Margin (TTM) | 42.12% | 60.17% |
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.
JEF
--
Financial - Capital Markets Industry
- Max
- 4.60
- Q3
- 3.24
- Median
- 1.32
- Q1
- 0.96
- Min
- 0.05
For the Financial - Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
JEF
--
Financial - Capital Markets Industry
- Max
- 3.63
- Q3
- 1.68
- Median
- 0.37
- Q1
- 0.09
- Min
- 0.00
Debt-to-Equity Ratio data for JEF is currently unavailable.
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.
JEF
0.74
Financial - Capital Markets Industry
- Max
- 12.71
- Q3
- 7.94
- Median
- 1.92
- Q1
- 0.24
- Min
- -7.71
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Capital Markets industry.
Financial Strength at a Glance
| Symbol | ALLY | JEF |
|---|---|---|
| Current Ratio (TTM) | 0.20 | -- |
| Quick Ratio (TTM) | 0.20 | -- |
| Debt-to-Equity Ratio (TTM) | 1.40 | -- |
| Debt-to-Asset Ratio (TTM) | 0.10 | -- |
| Net Debt-to-EBITDA Ratio (TTM) | 5.83 | -0.00 |
| Interest Coverage Ratio (TTM) | 0.05 | 0.74 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALLY and JEF. 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.
JEF
2.63%
Financial - Capital Markets Industry
- Max
- 5.86%
- Q3
- 1.74%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.63%, JEF offers a more attractive income stream than most of its peers in the Financial - Capital Markets 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.
JEF
51.22%
Financial - Capital Markets Industry
- Max
- 128.06%
- Q3
- 43.11%
- Median
- 12.56%
- Q1
- 0.00%
- Min
- 0.00%
JEF’s Dividend Payout Ratio of 51.22% is in the upper quartile for the Financial - Capital Markets 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 | JEF |
|---|---|---|
| Dividend Yield (TTM) | 2.91% | 2.63% |
| Dividend Payout Ratio (TTM) | 169.58% | 51.22% |
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.
JEF
19.26
Financial - Capital Markets Industry
- Max
- 42.65
- Q3
- 29.09
- Median
- 20.52
- Q1
- 14.58
- Min
- 8.28
JEF’s P/E Ratio of 19.26 is within the middle range for the Financial - Capital Markets 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.
JEF
0.37
Financial - Capital Markets Industry
- Max
- 4.05
- Q3
- 2.46
- Median
- 1.52
- Q1
- 0.78
- Min
- 0.02
In the lower quartile for the Financial - Capital Markets industry, JEF’s Forward PEG Ratio of 0.37 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
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.
JEF
1.13
Financial - Capital Markets Industry
- Max
- 14.34
- Q3
- 7.63
- Median
- 2.98
- Q1
- 1.50
- Min
- 0.04
The P/S Ratio is often not a primary valuation tool in the Financial - Capital Markets industry.
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.
JEF
1,179.70
Financial - Capital Markets Industry
- Max
- 9.60
- Q3
- 6.00
- Median
- 2.91
- Q1
- 1.84
- Min
- 0.53
At 1,179.70, JEF’s P/B Ratio is at an extreme premium to the Financial - Capital Markets industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ALLY | JEF |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 44.52 | 19.26 |
| Forward PEG Ratio (TTM) | 1.44 | 0.37 |
| Price-to-Sales Ratio (P/S, TTM) | 0.81 | 1.13 |
| Price-to-Book Ratio (P/B, TTM) | 0.89 | 1179.70 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.03 | -6.61 |
| EV-to-EBITDA (TTM) | 13.59 | 2.57 |
| EV-to-Sales (TTM) | 1.41 | 1.13 |