ALLY vs. WU: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALLY and WU, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ALLY’s market capitalization of 12.66 billion USD is substantially larger than WU’s 2.85 billion USD, indicating a significant difference in their market valuations.
ALLY’s beta of 1.12 points to significantly higher volatility compared to WU (beta: 0.71), suggesting ALLY has greater potential for both gains and losses relative to market movements.
| Symbol | ALLY | WU |
|---|---|---|
| Company Name | Ally Financial Inc. | The Western Union Company |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Credit Services | Financial - Credit Services |
| CEO | Michael G. Rhodes | Devin B. McGranahan |
| Price | 41.21 USD | 8.62 USD |
| Market Cap | 12.66 billion USD | 2.85 billion USD |
| Beta | 1.12 | 0.71 |
| Exchange | NYSE | NYSE |
| IPO Date | January 28, 2014 | October 2, 2006 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALLY and WU 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.
WU
121.93%
Financial - Credit Services Industry
- Max
- 34.05%
- Q3
- 18.70%
- Median
- 10.57%
- Q1
- 3.55%
- Min
- -12.12%
WU’s Return on Equity of 121.93% is exceptionally high, placing it well beyond the typical range for the Financial - Credit Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
WU
26.19%
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.
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.
WU
22.09%
Financial - Credit Services Industry
- Max
- 39.42%
- Q3
- 20.10%
- Median
- 12.91%
- Q1
- 5.82%
- Min
- -14.80%
A Net Profit Margin of 22.09% places WU in the upper quartile for the Financial - Credit Services 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.
WU
17.17%
Financial - Credit Services Industry
- Max
- 77.26%
- Q3
- 42.86%
- Median
- 17.99%
- Q1
- 10.82%
- Min
- -14.94%
WU’s Operating Profit Margin of 17.17% is around the midpoint for the Financial - Credit Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ALLY | WU |
|---|---|---|
| Return on Equity (TTM) | 2.02% | 121.93% |
| Return on Assets (TTM) | 0.15% | 10.97% |
| Return on Invested Capital (TTM) | 0.72% | 26.19% |
| Net Profit Margin (TTM) | 1.82% | 22.09% |
| Operating Profit Margin (TTM) | 2.43% | 17.17% |
| Gross Profit Margin (TTM) | 42.12% | 36.16% |
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.
WU
1.06
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.
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.
WU
2.97
Financial - Credit Services Industry
- Max
- 4.69
- Q3
- 2.55
- Median
- 1.20
- Q1
- 0.55
- Min
- 0.00
WU’s leverage is in the upper quartile of the Financial - Credit Services industry, with a Debt-to-Equity Ratio of 2.97. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
WU
5.63
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.
Financial Strength at a Glance
| Symbol | ALLY | WU |
|---|---|---|
| Current Ratio (TTM) | 0.20 | 1.06 |
| Quick Ratio (TTM) | 0.20 | 1.06 |
| Debt-to-Equity Ratio (TTM) | 1.40 | 2.97 |
| Debt-to-Asset Ratio (TTM) | 0.10 | 0.33 |
| Net Debt-to-EBITDA Ratio (TTM) | 5.83 | 1.59 |
| Interest Coverage Ratio (TTM) | 0.05 | 5.63 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALLY and WU. 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.
WU
10.91%
Financial - Credit Services Industry
- Max
- 14.68%
- Q3
- 2.97%
- Median
- 1.03%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 10.91%, WU offers a more attractive income stream than most of its peers in the Financial - Credit Services 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.
WU
35.33%
Financial - Credit Services Industry
- Max
- 169.58%
- Q3
- 38.15%
- Median
- 18.30%
- Q1
- 0.00%
- Min
- 0.00%
WU’s Dividend Payout Ratio of 35.33% is within the typical range for the Financial - Credit Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ALLY | WU |
|---|---|---|
| Dividend Yield (TTM) | 2.91% | 10.90% |
| Dividend Payout Ratio (TTM) | 169.58% | 35.33% |
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.
WU
3.18
Financial - Credit Services Industry
- Max
- 42.04
- Q3
- 25.88
- Median
- 12.28
- Q1
- 9.55
- Min
- 3.09
In the lower quartile for the Financial - Credit Services industry, WU’s P/E Ratio of 3.18 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.
WU
0.51
Financial - Credit Services Industry
- Max
- 2.76
- Q3
- 1.57
- Median
- 0.82
- Q1
- 0.51
- Min
- 0.06
WU’s Forward PEG Ratio of 0.51 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.
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.
WU
0.69
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.
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.
WU
3.10
Financial - Credit Services Industry
- Max
- 3.58
- Q3
- 2.84
- Median
- 1.28
- Q1
- 0.84
- Min
- 0.07
WU’s P/B Ratio of 3.10 is in the upper tier for the Financial - Credit Services 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 | WU |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 44.52 | 3.18 |
| Forward PEG Ratio (TTM) | 1.44 | 0.51 |
| Price-to-Sales Ratio (P/S, TTM) | 0.81 | 0.69 |
| Price-to-Book Ratio (P/B, TTM) | 0.89 | 3.10 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.03 | 7.88 |
| EV-to-EBITDA (TTM) | 13.59 | 4.97 |
| EV-to-Sales (TTM) | 1.41 | 1.01 |