Bread Financial Holdings, Inc. (BFH)vsCapital One Financial Corporation (COF)
BFH
Bread Financial Holdings, Inc.
$75.11
+0.83%
FINANCIAL SERVICES · Cap: $3.40B
COF
Capital One Financial Corporation
$185.23
+0.32%
FINANCIAL SERVICES · Cap: $112.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Capital One Financial Corporation generates 1159% more annual revenue ($32.78B vs $2.60B). BFH leads profitability with a 19.9% profit margin vs 7.5%. COF appears more attractively valued with a PEG of 0.19. BFH earns a higher WallStSmart Score of 82/100 (A-).
BFH
Exceptional Buy82
out of 100
Grade: A-
COF
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+85.2%
Fair Value
$512.93
Current Price
$75.11
$437.82 discount
Margin of Safety
-50.8%
Fair Value
$142.20
Current Price
$185.23
$43.03 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 735.0% YoY
Growing faster than its price suggests
18.5% revenue growth
Growing faster than its price suggests
Reasonable price relative to book value
Revenue surging 51.6% year-over-year
Large-cap with strong market position
Strong operational efficiency at 22.9%
Earnings expanding 22.2% YoY
Areas to Watch
Elevated debt levels
Distress zone — elevated risk
ROE of 2.4% — below average capital efficiency
7.5% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : BFH
The strongest argument for BFH centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 19.9% and operating margin at 16.9%. Revenue growth of 18.5% demonstrates continued momentum.
Bull Case : COF
The strongest argument for COF centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 51.6% demonstrates continued momentum. PEG of 0.19 suggests the stock is reasonably priced for its growth.
Bear Case : BFH
The primary concerns for BFH are Debt/Equity, Altman Z-Score.
Bear Case : COF
The primary concerns for COF are Return on Equity, Profit Margin, P/E Ratio. A P/E of 54.0x leaves little room for execution misses.
Key Dynamics to Monitor
BFH profiles as a growth stock while COF is a hypergrowth play — different risk/reward profiles.
BFH carries more volatility with a beta of 1.20 — expect wider price swings.
COF is growing revenue faster at 51.6% — sustainability is the question.
COF generates stronger free cash flow (6.7B), providing more financial flexibility.
Bottom Line
BFH scores higher overall (82/100 vs 75/100), backed by strong 19.9% margins and 18.5% revenue growth. Both earn "Exceptional 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.
Bread Financial Holdings, Inc.
FINANCIAL SERVICES · CREDIT SERVICES · USA
Bread Financial Holdings Inc. provides lending and payment technology solutions to customers and consumer-based industries in North America. The company is headquartered in Columbus, Ohio.
Visit Website →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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