ALLY vs. LPLA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALLY and LPLA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
LPLA’s market capitalization of 30.72 billion USD is significantly greater than ALLY’s 12.66 billion USD, highlighting its more substantial market valuation.
ALLY’s beta of 1.12 points to significantly higher volatility compared to LPLA (beta: 0.66), suggesting ALLY has greater potential for both gains and losses relative to market movements.
| Symbol | ALLY | LPLA |
|---|---|---|
| Company Name | Ally Financial Inc. | LPL Financial Holdings Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Credit Services | Financial - Capital Markets |
| CEO | Michael G. Rhodes | Richard Steinmeier |
| Price | 41.21 USD | 384.11 USD |
| Market Cap | 12.66 billion USD | 30.72 billion USD |
| Beta | 1.12 | 0.66 |
| Exchange | NYSE | NASDAQ |
| IPO Date | January 28, 2014 | November 18, 2010 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALLY and LPLA 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.
LPLA
38.39%
Financial - Capital Markets Industry
- Max
- 42.02%
- Q3
- 20.69%
- Median
- 13.73%
- Q1
- 3.33%
- Min
- -21.32%
In the upper quartile for the Financial - Capital Markets industry, LPLA’s Return on Equity of 38.39% 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.
LPLA
16.02%
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.
LPLA
8.23%
Financial - Capital Markets Industry
- Max
- 28.67%
- Q3
- 13.52%
- Median
- 10.47%
- Q1
- 0.24%
- Min
- -9.55%
LPLA’s Net Profit Margin of 8.23% 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.
LPLA
11.19%
Financial - Capital Markets Industry
- Max
- 56.86%
- Q3
- 25.29%
- Median
- 15.90%
- Q1
- 0.51%
- Min
- -19.18%
LPLA’s Operating Profit Margin of 11.19% 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 | LPLA |
|---|---|---|
| Return on Equity (TTM) | 2.02% | 38.39% |
| Return on Assets (TTM) | 0.15% | 7.79% |
| Return on Invested Capital (TTM) | 0.72% | 16.02% |
| Net Profit Margin (TTM) | 1.82% | 8.23% |
| Operating Profit Margin (TTM) | 2.43% | 11.19% |
| Gross Profit Margin (TTM) | 42.12% | 47.37% |
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.
LPLA
--
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.
LPLA
--
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 LPLA 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.
LPLA
4.93
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 | LPLA |
|---|---|---|
| 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 | -0.51 |
| Interest Coverage Ratio (TTM) | 0.05 | 4.93 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALLY and LPLA. 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.
LPLA
0.31%
Financial - Capital Markets Industry
- Max
- 5.86%
- Q3
- 1.74%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
LPLA’s Dividend Yield of 0.31% is consistent with its peers in the Financial - Capital Markets industry, providing a dividend return that is standard for its sector.
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.
LPLA
6.18%
Financial - Capital Markets Industry
- Max
- 128.06%
- Q3
- 43.11%
- Median
- 12.56%
- Q1
- 0.00%
- Min
- 0.00%
LPLA’s Dividend Payout Ratio of 6.18% is within the typical range for the Financial - Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ALLY | LPLA |
|---|---|---|
| Dividend Yield (TTM) | 2.91% | 0.31% |
| Dividend Payout Ratio (TTM) | 169.58% | 6.18% |
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.
LPLA
26.33
Financial - Capital Markets Industry
- Max
- 42.65
- Q3
- 29.09
- Median
- 20.52
- Q1
- 14.58
- Min
- 8.28
LPLA’s P/E Ratio of 26.33 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.
LPLA
1.25
Financial - Capital Markets Industry
- Max
- 4.05
- Q3
- 2.46
- Median
- 1.52
- Q1
- 0.78
- Min
- 0.02
LPLA’s Forward PEG Ratio of 1.25 is within the middle range of its peers in the Financial - Capital Markets 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.
LPLA
2.32
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.
LPLA
9.17
Financial - Capital Markets Industry
- Max
- 9.60
- Q3
- 6.00
- Median
- 2.91
- Q1
- 1.84
- Min
- 0.53
LPLA’s P/B Ratio of 9.17 is in the upper tier for the Financial - Capital Markets 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 | LPLA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 44.52 | 26.33 |
| Forward PEG Ratio (TTM) | 1.44 | 1.25 |
| Price-to-Sales Ratio (P/S, TTM) | 0.81 | 2.32 |
| Price-to-Book Ratio (P/B, TTM) | 0.89 | 9.17 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.03 | -91.27 |
| EV-to-EBITDA (TTM) | 13.59 | 12.29 |
| EV-to-Sales (TTM) | 1.41 | 2.23 |