WallStSmart

Ally Financial Inc (ALLY)vsCapital One Financial Corporation (COF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Capital One Financial Corporation generates 372% more annual revenue ($36.31B vs $7.69B). ALLY leads profitability with a 18.2% profit margin vs 8.9%. COF appears more attractively valued with a PEG of 0.20. ALLY earns a higher WallStSmart Score of 79/100 (B+).

ALLY

Strong Buy

79

out of 100

Grade: B+

Growth: 8.0Profit: 6.5Value: 8.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.04

COF

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 6.0Value: 5.7Quality: 4.0
Piotroski: 2/9Altman Z: -0.36

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALLY6 strengths · Avg: 9.3/10
PEG RatioValuation
0.5010/10

Growing faster than its price suggests

P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
265.4%10/10

Earnings expanding 265.4% YoY

Operating MarginProfitability
21.0%8/10

Strong operational efficiency at 21.0%

Revenue GrowthGrowth
19.7%8/10

19.7% revenue growth

COF6 strengths · Avg: 9.2/10
PEG RatioValuation
0.2010/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
46.3%10/10

Revenue surging 46.3% year-over-year

Market CapQuality
$114.40B9/10

Large-cap with strong market position

Operating MarginProfitability
28.6%8/10

Strong operational efficiency at 28.6%

Free Cash FlowQuality
$5.47B8/10

Generating 5.5B in free cash flow

Areas to Watch

ALLY2 concerns · Avg: 2.5/10
Debt/EquityHealth
1.383/10

Elevated debt levels

Altman Z-ScoreHealth
0.042/10

Distress zone — elevated risk

COF4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.9%3/10

ROE of 2.9% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
56.6x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-3.2%2/10

Earnings declined 3.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : ALLY

The strongest argument for ALLY centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 18.2% and operating margin at 21.0%. Revenue growth of 19.7% demonstrates continued momentum.

Bull Case : COF

The strongest argument for COF centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 46.3% demonstrates continued momentum. PEG of 0.20 suggests the stock is reasonably priced for its growth.

Bear Case : ALLY

The primary concerns for ALLY are Debt/Equity, Altman Z-Score.

Bear Case : COF

The primary concerns for COF are Return on Equity, Piotroski F-Score, P/E Ratio. A P/E of 56.6x leaves little room for execution misses.

Key Dynamics to Monitor

ALLY profiles as a growth stock while COF is a hypergrowth play — different risk/reward profiles.

ALLY carries more volatility with a beta of 1.09 — expect wider price swings.

COF is growing revenue faster at 46.3% — sustainability is the question.

COF generates stronger free cash flow (5.5B), providing more financial flexibility.

Bottom Line

ALLY scores higher overall (79/100 vs 65/100), backed by strong 18.2% margins and 19.7% revenue growth. Both earn "Strong Buy" and "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.

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Capital One Financial Corporation

FINANCIAL SERVICES · CREDIT SERVICES · USA

Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States.

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