Reviewing Bread Financial (NYSE:BFH) & TeraWulf (NASDAQ:WULF)

TeraWulf (NASDAQ:WULF) and Bread Financial (NYSE:BFH) are both mid-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Analyst Recommendations

This is a summary of recent ratings and target prices for TeraWulf and Bread Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeraWulf	1	1	13	0	2.80
Bread Financial	3	6	6	0	2.20

TeraWulf presently has a consensus target price of $21.29, suggesting a potential upside of 42.95%. Bread Financial has a consensus target price of $81.08, suggesting a potential upside of 12.24%. Given TeraWulf’s stronger consensus rating and higher possible upside, equities analysts clearly believe TeraWulf is more favorable than Bread Financial.

Insider and Institutional Ownership

62.5% of TeraWulf shares are owned by institutional investors. Comparatively, 99.5% of Bread Financial shares are owned by institutional investors. 19.9% of TeraWulf shares are owned by company insiders. Comparatively, 0.9% of Bread Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TeraWulf	-392.64%	-131.48%	-8.64%
Bread Financial	11.02%	17.92%	2.61%

Risk and Volatility

TeraWulf has a beta of 3.67, suggesting that its stock price is 267% more volatile than the S&P 500. Comparatively, Bread Financial has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Earnings & Valuation

This table compares TeraWulf and Bread Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeraWulf	$168.46 million	37.48	-$661.42 million	($1.63)	-9.13
Bread Financial	$4.70 billion	0.66	$518.00 million	$10.84	6.66

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

Summary

Bread Financial beats TeraWulf on 8 of the 14 factors compared between the two stocks.

About TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.

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.