ALLY vs. XP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALLY and XP, 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 XP’s is 10.43 billion USD, indicating their market valuations are broadly comparable.
With betas of 1.12 for ALLY and 1.17 for XP, both stocks show similar sensitivity to overall market movements.
| Symbol | ALLY | XP |
|---|---|---|
| Company Name | Ally Financial Inc. | XP Inc. |
| Country | US | BR |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Credit Services | Financial - Capital Markets |
| CEO | Michael G. Rhodes | Thiago Maffra |
| Price | 41.21 USD | 19.8 USD |
| Market Cap | 12.66 billion USD | 10.43 billion USD |
| Beta | 1.12 | 1.17 |
| Exchange | NYSE | NASDAQ |
| IPO Date | January 28, 2014 | December 11, 2019 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALLY and XP 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.
XP
22.91%
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, XP’s Return on Equity of 22.91% 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.
XP
-1.71%
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.
XP
63.34%
Financial - Capital Markets Industry
- Max
- 28.67%
- Q3
- 13.52%
- Median
- 10.47%
- Q1
- 0.24%
- Min
- -9.55%
XP’s Net Profit Margin of 63.34% is exceptionally high, placing it well beyond the typical range for the Financial - Capital Markets industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
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.
XP
-53.85%
Financial - Capital Markets Industry
- Max
- 56.86%
- Q3
- 25.29%
- Median
- 15.90%
- Q1
- 0.51%
- Min
- -19.18%
XP has a negative Operating Profit Margin of -53.85%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | ALLY | XP |
|---|---|---|
| Return on Equity (TTM) | 2.02% | 22.91% |
| Return on Assets (TTM) | 0.15% | 1.35% |
| Return on Invested Capital (TTM) | 0.72% | -1.71% |
| Net Profit Margin (TTM) | 1.82% | 63.34% |
| Operating Profit Margin (TTM) | 2.43% | -53.85% |
| Gross Profit Margin (TTM) | 42.12% | 30.86% |
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.
XP
0.57
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.
XP
2.75
Financial - Capital Markets Industry
- Max
- 3.63
- Q3
- 1.68
- Median
- 0.37
- Q1
- 0.09
- Min
- 0.00
XP’s leverage is in the upper quartile of the Financial - Capital Markets industry, with a Debt-to-Equity Ratio of 2.75. 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.
XP
-5.17
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 | XP |
|---|---|---|
| Current Ratio (TTM) | 0.20 | 0.57 |
| Quick Ratio (TTM) | 0.20 | 0.57 |
| Debt-to-Equity Ratio (TTM) | 1.40 | 2.75 |
| Debt-to-Asset Ratio (TTM) | 0.10 | 0.17 |
| Net Debt-to-EBITDA Ratio (TTM) | 5.83 | 8.10 |
| Interest Coverage Ratio (TTM) | 0.05 | -5.17 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALLY and XP. 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.
XP
3.28%
Financial - Capital Markets Industry
- Max
- 5.86%
- Q3
- 1.74%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 3.28%, XP 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.
XP
43.17%
Financial - Capital Markets Industry
- Max
- 128.06%
- Q3
- 43.11%
- Median
- 12.56%
- Q1
- 0.00%
- Min
- 0.00%
XP’s Dividend Payout Ratio of 43.17% 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 | XP |
|---|---|---|
| Dividend Yield (TTM) | 2.91% | 3.28% |
| Dividend Payout Ratio (TTM) | 169.58% | 43.17% |
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.
XP
12.27
Financial - Capital Markets Industry
- Max
- 42.65
- Q3
- 29.09
- Median
- 20.52
- Q1
- 14.58
- Min
- 8.28
In the lower quartile for the Financial - Capital Markets industry, XP’s P/E Ratio of 12.27 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.
XP
-0.12
Financial - Capital Markets Industry
- Max
- 4.05
- Q3
- 2.46
- Median
- 1.52
- Q1
- 0.78
- Min
- 0.02
XP has a negative Forward PEG Ratio of -0.12. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
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.
XP
7.59
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.
XP
2.75
Financial - Capital Markets Industry
- Max
- 9.60
- Q3
- 6.00
- Median
- 2.91
- Q1
- 1.84
- Min
- 0.53
XP’s P/B Ratio of 2.75 is within the conventional range for the Financial - Capital Markets 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.
Valuation at a Glance
| Symbol | ALLY | XP |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 44.52 | 12.27 |
| Forward PEG Ratio (TTM) | 1.44 | -0.12 |
| Price-to-Sales Ratio (P/S, TTM) | 0.81 | 7.59 |
| Price-to-Book Ratio (P/B, TTM) | 0.89 | 2.75 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.03 | 4.86 |
| EV-to-EBITDA (TTM) | 13.59 | 17.32 |
| EV-to-Sales (TTM) | 1.41 | 14.26 |