Analyzing Bread Financial (NYSE:BFH) and Jiayin Group (NASDAQ:JFIN)

Bread Financial (NYSE:BFH) and Jiayin Group (NASDAQ:JFIN) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bread Financial and Jiayin Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bread Financial	1	5	8	1	2.60
Jiayin Group	1	0	0	0	1.00

Bread Financial currently has a consensus price target of $112.08, indicating a potential upside of 1.24%. Given Bread Financial’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Bread Financial is more favorable than Jiayin Group.

Earnings & Valuation

This table compares Bread Financial and Jiayin Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bread Financial	$4.70 billion	0.91	$518.00 million	$12.82	8.63
Jiayin Group	$889.76 million	0.10	$219.61 million	$0.64	2.66

Bread Financial has higher revenue and earnings than Jiayin Group. Jiayin Group is trading at a lower price-to-earnings ratio than Bread Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bread Financial and Jiayin Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bread Financial	11.95%	18.42%	2.76%
Jiayin Group	5.39%	5.02%	2.57%

Volatility and Risk

Bread Financial has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Jiayin Group has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Insider and Institutional Ownership

99.5% of Bread Financial shares are held by institutional investors. Comparatively, 44.1% of Jiayin Group shares are held by institutional investors. 1.3% of Bread Financial shares are held by insiders. Comparatively, 51.2% of Jiayin Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Bread Financial beats Jiayin Group on 14 of the 15 factors compared between the two stocks.

About Bread Financial

Bread Financial Holdings, Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for private label and co-brand credit card programs, as well as through Bread partnerships; and Comenity-branded general purpose cash-back credit. The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs, and installment loans and split-pay products; and provides marketing, and data and analytics services. In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience. Further, the company through Bread, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products. It offers its products under the Bread CashbackTM, Bread PayTM, and Bread SavingsTM brands. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings, Inc. in March 2022. Bread Financial Holdings, Inc. was incorporated in 1995 and is headquartered in Columbus, Ohio.

About Jiayin Group

Jiayin Group Inc., together with its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates a fintech platform that facilitates connections between individual borrowers and financial institutions. It also offers referral services for investment products offered by the financial service providers; and technology development and services, as well as guarantee services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China. Jiayin Group Inc. operates as a subsidiary of New Dream Capital Holdings Limited.