ALLY vs. PRH: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALLY and PRH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
PRH’s market capitalization of 38.23 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 PRH (beta: 0.31), suggesting ALLY has greater potential for both gains and losses relative to market movements.
| Symbol | ALLY | PRH |
|---|---|---|
| Company Name | Ally Financial Inc. | Prudential Financial, Inc. 5.95 |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Credit Services | Insurance - Life |
| CEO | Michael G. Rhodes | Charles Frederick Lowrey |
| Price | 41.21 USD | 25.21 USD |
| Market Cap | 12.66 billion USD | 38.23 billion USD |
| Beta | 1.12 | 0.31 |
| Exchange | NYSE | NYSE |
| IPO Date | January 28, 2014 | August 22, 2022 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALLY and PRH 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.
PRH
-18.64%
Insurance - Life Industry
- Max
- 23.38%
- Q3
- 14.56%
- Median
- 11.23%
- Q1
- 1.67%
- Min
- -5.23%
PRH has a negative Return on Equity of -18.64%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
PRH
44.99%
Insurance - Life Industry
- Max
- 6.30%
- Q3
- 3.33%
- Median
- 2.16%
- Q1
- 0.68%
- Min
- -0.10%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Life 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.
PRH
3.81%
Insurance - Life Industry
- Max
- 21.20%
- Q3
- 11.59%
- Median
- 7.10%
- Q1
- 3.79%
- Min
- 2.14%
PRH’s Net Profit Margin of 3.81% is aligned with the median group of its peers in the Insurance - Life 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.
PRH
37.35%
Insurance - Life Industry
- Max
- 38.96%
- Q3
- 37.28%
- Median
- 14.06%
- Q1
- 8.95%
- Min
- -1.68%
In the Insurance - Life industry, Operating Profit Margin is often not the primary measure of operational efficiency.
Profitability at a Glance
| Symbol | ALLY | PRH |
|---|---|---|
| Return on Equity (TTM) | 2.02% | -18.64% |
| Return on Assets (TTM) | 0.15% | 0.31% |
| Return on Invested Capital (TTM) | 0.72% | 44.99% |
| Net Profit Margin (TTM) | 1.82% | 3.81% |
| Operating Profit Margin (TTM) | 2.43% | 37.35% |
| Gross Profit Margin (TTM) | 42.12% | 81.26% |
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.
PRH
3.15
Insurance - Life Industry
- Max
- 843.97
- Q3
- 821.68
- Median
- 6.06
- Q1
- 3.15
- Min
- 0.47
PRH’s Current Ratio of 3.15 aligns with the median group of the Insurance - Life 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.
PRH
10.37
Insurance - Life Industry
- Max
- 0.86
- Q3
- 0.83
- Median
- 0.55
- Q1
- 0.37
- Min
- 0.27
With a Debt-to-Equity Ratio of 10.37, PRH operates with exceptionally high leverage compared to the Insurance - Life industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
PRH
--
Insurance - Life Industry
- Max
- 37.82
- Q3
- 19.50
- Median
- 6.25
- Q1
- 2.29
- Min
- -0.76
Interest Coverage Ratio data for PRH is currently unavailable.
Financial Strength at a Glance
| Symbol | ALLY | PRH |
|---|---|---|
| Current Ratio (TTM) | 0.20 | 3.15 |
| Quick Ratio (TTM) | 0.20 | 3.15 |
| Debt-to-Equity Ratio (TTM) | 1.40 | 10.37 |
| Debt-to-Asset Ratio (TTM) | 0.10 | 0.03 |
| Net Debt-to-EBITDA Ratio (TTM) | 5.83 | 11.17 |
| Interest Coverage Ratio (TTM) | 0.05 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALLY and PRH. 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.
PRH
5.90%
Insurance - Life Industry
- Max
- 10.36%
- Q3
- 4.76%
- Median
- 2.40%
- Q1
- 1.51%
- Min
- 0.00%
With a Dividend Yield of 5.90%, PRH offers a more attractive income stream than most of its peers in the Insurance - Life 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.
PRH
82.49%
Insurance - Life Industry
- Max
- 203.94%
- Q3
- 64.38%
- Median
- 29.88%
- Q1
- 19.14%
- Min
- 0.00%
PRH’s Dividend Payout Ratio of 82.49% is in the upper quartile for the Insurance - Life 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 | PRH |
|---|---|---|
| Dividend Yield (TTM) | 2.91% | 5.90% |
| Dividend Payout Ratio (TTM) | 169.58% | 82.49% |
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.
PRH
3.92
Insurance - Life Industry
- Max
- 17.82
- Q3
- 16.08
- Median
- 12.43
- Q1
- 7.33
- Min
- 3.69
In the lower quartile for the Insurance - Life industry, PRH’s P/E Ratio of 3.92 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
PRH
0.52
Insurance - Life Industry
- Max
- 3.81
- Q3
- 1.95
- Median
- 0.97
- Q1
- 0.53
- Min
- 0.24
In the lower quartile for the Insurance - Life industry, PRH’s Forward PEG Ratio of 0.52 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.
PRH
0.63
Insurance - Life Industry
- Max
- 3.84
- Q3
- 2.89
- Median
- 1.06
- Q1
- 0.63
- Min
- 0.31
PRH’s P/S Ratio of 0.63 aligns with the market consensus for the Insurance - Life 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.
PRH
4.46
Insurance - Life Industry
- Max
- 3.87
- Q3
- 2.13
- Median
- 1.49
- Q1
- 0.95
- Min
- 0.38
At 4.46, PRH’s P/B Ratio is at an extreme premium to the Insurance - Life 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 | PRH |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 44.52 | 3.92 |
| Forward PEG Ratio (TTM) | 1.44 | 0.52 |
| Price-to-Sales Ratio (P/S, TTM) | 0.81 | 0.63 |
| Price-to-Book Ratio (P/B, TTM) | 0.89 | 4.46 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.03 | 49.33 |
| EV-to-EBITDA (TTM) | 13.59 | 98.65 |
| EV-to-Sales (TTM) | 1.41 | 0.71 |