Analyzing Orix Corp Ads (IX) and Ally Financial (ALLY)
Orix Corp Ads (NYSE: IX) and Ally Financial (NYSE:ALLY) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
This is a breakdown of current ratings and target prices for Orix Corp Ads and Ally Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Orix Corp Ads||0||0||0||1||4.00|
Ally Financial has a consensus target price of $25.58, indicating a potential upside of 9.71%. Given Ally Financial’s higher possible upside, analysts plainly believe Ally Financial is more favorable than Orix Corp Ads.
This table compares Orix Corp Ads and Ally Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Orix Corp Ads||9.95%||10.83%||2.54%|
Orix Corp Ads pays an annual dividend of $2.10 per share and has a dividend yield of 2.6%. Ally Financial pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Orix Corp Ads pays out 210.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ally Financial pays out 24.5% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Orix Corp Ads and Ally Financial’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Orix Corp Ads||$26.63 billion||0.79||$6.33 billion||$1.00||81.81|
|Ally Financial||$5.95 billion||1.88||$940.41 million||$1.96||11.90|
Orix Corp Ads has higher revenue and earnings than Ally Financial. Ally Financial is trading at a lower price-to-earnings ratio than Orix Corp Ads, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Orix Corp Ads has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Ally Financial has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.
Insider & Institutional Ownership
1.9% of Orix Corp Ads shares are owned by institutional investors. 0.1% of Orix Corp Ads shares are owned by insiders. Comparatively, 0.2% of Ally Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Orix Corp Ads beats Ally Financial on 10 of the 17 factors compared between the two stocks.
About Orix Corp Ads
ORIX Corporation (ORIX) is a financial services company. The Company operates through six segments: Corporate Financial Services, which consists of lending, leasing and fee business; Maintenance Leasing, which consists of automobile leasing and rentals, car sharing, and test and measurement instruments and information technology-related equipment rentals and leasing; Real Estate, which consists of real estate development and rental, facility operation, real estate investment trust (REIT) asset management, and real estate investment advisory services; Investment and Operation, which consists of environment and energy-related business, principal investment and loan servicing (asset recovery); Retail Segment, which consists of life insurance, banking and card loan business, and Overseas Business, which consists of leasing, lending, investment in bonds, investment banking, asset management and ship- and aircraft-related operations.
About Ally Financial
Ally Financial Inc. is a digital financial services company. The Company is a bank and financial holding company. Its segments include Automotive Finance operations, Insurance operations, Mortgage Finance operations, Corporate Finance operations, and Corporate and Other. The Automotive Finance operations segment provides the United States-based automotive financing services to consumers and automotive dealers, and automotive and equipment financing services to companies and municipalities. The Insurance operations segment offers both consumer finance protection and insurance products sold through the automotive dealer channel, and commercial insurance products sold directly to dealers. The Mortgage Finance operations segment consists of the management of a held-for-investment consumer mortgage finance loan portfolio. The Corporate Finance operations segment provides senior secured leveraged cash flow and asset-based loans to mostly the United States-based middle market companies.
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