Ally Financial Inc (ALLY)vsMastercard Inc (MA)
ALLY
Ally Financial Inc
$39.23
-0.73%
FINANCIAL SERVICES · Cap: $12.22B
MA
Mastercard Inc
$502.76
+0.77%
FINANCIAL SERVICES · Cap: $445.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Mastercard Inc generates 345% more annual revenue ($32.79B vs $7.37B). MA leads profitability with a 45.7% profit margin vs 11.6%. ALLY appears more attractively valued with a PEG of 0.42. ALLY earns a higher WallStSmart Score of 80/100 (B+).
ALLY
Strong Buy80
out of 100
Grade: B+
MA
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+62.4%
Fair Value
$110.92
Current Price
$39.23
$71.69 discount
Margin of Safety
+33.1%
Fair Value
$751.54
Current Price
$502.76
$248.78 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Attractively priced relative to earnings
Strong operational efficiency at 20.4%
Mega-cap, among the largest globally
Keeps 46 of every $100 in revenue as profit
Strong operational efficiency at 57.7%
Safe zone — low bankruptcy risk
17.6% revenue growth
Earnings expanding 24.2% YoY
Areas to Watch
2.7% earnings growth
ROE of 5.8% — below average capital efficiency
Elevated debt levels
Negative free cash flow — burning cash
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of 2.1% — below average capital efficiency
Trading at 58.1x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ALLY
The strongest argument for ALLY centers on PEG Ratio, Price/Book, P/E Ratio. Revenue growth of 12.0% demonstrates continued momentum. PEG of 0.42 suggests the stock is reasonably priced for its growth.
Bull Case : MA
The strongest argument for MA centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 45.7% and operating margin at 57.7%. Revenue growth of 17.6% demonstrates continued momentum.
Bear Case : ALLY
The primary concerns for ALLY are EPS Growth, Return on Equity, Debt/Equity.
Bear Case : MA
The primary concerns for MA are PEG Ratio, P/E Ratio, Return on Equity. Debt-to-equity of 2.45 is elevated, increasing financial risk.
Key Dynamics to Monitor
ALLY profiles as a value stock while MA is a growth play — different risk/reward profiles.
ALLY carries more volatility with a beta of 1.16 — expect wider price swings.
MA is growing revenue faster at 17.6% — sustainability is the question.
MA generates stronger free cash flow (4.8B), providing more financial flexibility.
Bottom Line
ALLY scores higher overall (80/100 vs 70/100) and 12.0% revenue growth. MA offers better value entry with a 33.1% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ally Financial Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Ally Financial Inc., a banking holding company, offers a variety of digital financial products and services to consumers, business and corporate clients primarily in the United States and Canada. The company is headquartered in Detroit, Michigan.
Visit Website →Mastercard Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Mastercard Incorporated is an American multinational financial services corporation headquartered in the Mastercard International Global Headquarters in Purchase, New York. The Global Operations Headquarters is located in O'Fallon, Missouri, a municipality of St. Charles County, Missouri. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard brand debit, credit and prepaid cards to make purchases. Mastercard Worldwide has been a publicly traded company since 2006.
Visit Website →Compare with Other CREDIT SERVICES Stocks
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