Comprehensive Stock Comparison
Compare Bread Financial Holdings, Inc. (BFH) vs Capital One Financial Corporation (COF) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | COF | 9.0% revenue growth vs BFH's -7.3% |
| Value | BFH | Lower P/E (7.0x vs 9.7x) |
| Quality / Margins | COF | 8.8% net margin vs BFH's 5.8% |
| Stability / Safety | BFH | Beta 1.47 vs COF's 1.53 |
| Dividends | COF | 1.2% yield, 2-year raise streak, vs BFH's 1.2% |
| Momentum (1Y) | BFH | +32.9% vs COF's -1.1% |
| Efficiency (ROA) | BFH | 2.2% ROA vs COF's 0.2%, ROIC 3.3% vs 4.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Bread Financial is a financial technology company that provides private-label and co-branded credit card programs along with point-of-sale installment lending solutions. It generates revenue primarily from interest income on its loan portfolio — which includes credit cards and buy-now-pay-later products — and from merchant fees for payment processing services. The company's competitive advantage lies in its established partnerships with over 130 retail brands and its integrated technology platform that embeds financing options directly into merchant checkout experiences.
Capital One is a diversified financial services company that operates primarily as a credit card issuer and consumer bank. It generates revenue through three main segments: credit card interest and fees (its largest segment), consumer banking services, and commercial banking operations. The company's key advantage lies in its sophisticated data analytics and technology platform—which enables targeted marketing and risk assessment—coupled with its direct banking model that reduces physical branch costs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
BFH leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). COF leads in 2 (Total Returns, Analyst Outlook).
Financial Metrics (TTM)
COF is the larger business by revenue, generating $53.9B annually — 11.2x BFH's $4.8B. Profitability is closely matched — net margins range from 8.8% (COF) to 5.8% (BFH).
| Metric | BFHBread Financial H… | COFCapital One Finan… |
|---|---|---|
| RevenueTrailing 12 months | $4.8B | $53.9B |
| EBITDAEarnings before interest/tax | $623M | $6.1B |
| Net IncomeAfter-tax profit | $472M | $1.4B |
| Free Cash FlowCash after capex | $2.0B | $20.8B |
| Gross MarginGross profit ÷ Revenue | +50.9% | +50.8% |
| Operating MarginEBIT ÷ Revenue | +7.9% | +11.0% |
| Net MarginNet income ÷ Revenue | +5.8% | +8.8% |
| FCF MarginFCF ÷ Revenue | +38.7% | +31.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +100.0% | +9.5% |
Valuation Metrics
At 12.9x trailing earnings, BFH trades at a 24% valuation discount to COF's 16.9x P/E. On an enterprise value basis, BFH's 10.7x EV/EBITDA is more attractive than COF's 13.9x.
| Metric | BFHBread Financial H… | COFCapital One Finan… |
|---|---|---|
| Market CapShares × price | $3.1B | $124.4B |
| Enterprise ValueMkt cap + debt − cash | $5.1B | $126.7B |
| Trailing P/EPrice ÷ TTM EPS | 12.88x | 16.88x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.03x | 9.67x |
| PEG RatioP/E ÷ EPS growth rate | — | 10.08x |
| EV / EBITDAEnterprise value multiple | 10.75x | 13.85x |
| Price / SalesMarket cap ÷ Revenue | 0.64x | 2.31x |
| Price / BookPrice ÷ Book value/share | 1.17x | 1.23x |
| Price / FCFMarket cap ÷ FCF | 1.64x | 7.34x |
Profitability & Efficiency
BFH delivers a 14.2% return on equity — every $100 of shareholder capital generates $14 in annual profit, vs $1 for COF. COF carries lower financial leverage with a 0.75x debt-to-equity ratio, signaling a more conservative balance sheet compared to BFH's 1.86x. On the Piotroski fundamental quality scale (0–9), COF scores 5/9 vs BFH's 3/9, reflecting solid financial health.
| Metric | BFHBread Financial H… | COFCapital One Finan… |
|---|---|---|
| ROE (TTM)Return on equity | +14.2% | +1.2% |
| ROA (TTM)Return on assets | +2.2% | +0.2% |
| ROICReturn on invested capital | +3.3% | +4.1% |
| ROCEReturn on capital employed | +2.4% | +4.6% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 5 |
| Debt / EquityFinancial leverage | 1.86x | 0.75x |
| Net DebtTotal debt minus cash | $2.0B | $2.3B |
| Cash & Equiv.Liquid assets | $3.7B | $43.2B |
| Total DebtShort + long-term debt | $5.7B | $45.6B |
| Interest CoverageEBIT ÷ Interest expense | 0.61x | 0.11x |
Total Returns (with DRIP)
A $10,000 investment in COF five years ago would be worth $16,819 today (with dividends reinvested), compared to $9,442 for BFH. Over the past 12 months, BFH leads with a +32.9% total return vs COF's -1.1%. The 3-year compound annual growth rate (CAGR) favors COF at 23.1% vs BFH's 21.4% — a key indicator of consistent wealth creation.
| Metric | BFHBread Financial H… | COFCapital One Finan… |
|---|---|---|
| YTD ReturnYear-to-date | -5.6% | -20.8% |
| 1-Year ReturnPast 12 months | +32.9% | -1.1% |
| 3-Year ReturnCumulative with dividends | +78.8% | +86.3% |
| 5-Year ReturnCumulative with dividends | -5.6% | +68.2% |
| 10-Year ReturnCumulative with dividends | -51.0% | +228.4% |
| CAGR (3Y)Annualised 3-year return | +21.4% | +23.1% |
Risk & Volatility
BFH is the less volatile stock with a 1.47 beta — it tends to amplify market swings less than COF's 1.53 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. BFH currently trades 86.4% from its 52-week high vs COF's 75.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | BFHBread Financial H… | COFCapital One Finan… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.47x | 1.53x |
| 52-Week HighHighest price in past year | $82.03 | $259.64 |
| 52-Week LowLowest price in past year | $38.21 | $143.22 |
| % of 52W HighCurrent price vs 52-week peak | +86.4% | +75.4% |
| RSI (14)Momentum oscillator 0–100 | 60.7 | 45.1 |
| Avg Volume (50D)Average daily shares traded | 749K | 4.5M |
Analyst Outlook
Wall Street rates BFH as "Hold" and COF as "Buy". Consensus price targets imply 39.9% upside for COF (target: $274) vs 11.7% for BFH (target: $79). For income investors, COF offers the higher dividend yield at 1.24% vs BFH's 1.20%.
| Metric | BFHBread Financial H… | COFCapital One Finan… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $79.17 | $273.62 |
| # AnalystsCovering analysts | 37 | 56 |
| Dividend YieldAnnual dividend ÷ price | +1.2% | +1.2% |
| Dividend StreakConsecutive years of raises | 1 | 2 |
| Dividend / ShareAnnual DPS | $0.85 | $2.43 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.8% | +0.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | 100 | 106.41 | +6.4% |
| Capital One Financi… (COF) | 100 | 244.54 | +144.5% |
Capital One Financi… (COF) returned +68% over 5 years vs Bread Financial Hol… (BFH)'s -6%. A $10,000 investment in COF 5 years ago would be worth $16,819 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | $6.4B | $4.8B | -25.5% |
| Capital One Financi… (COF) | $25.0B | $53.9B | +115.4% |
Bread Financial Holdings, Inc.'s revenue grew from $6.4B (2015) to $4.8B (2024) — a -3.2% CAGR. Capital One Financial Corporation's revenue grew from $25.0B (2015) to $53.9B (2024) — a 8.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | 9.3% | 5.8% | -37.7% |
| Capital One Financi… (COF) | 16.2% | 8.8% | -45.6% |
Bread Financial Holdings, Inc.'s net margin went from 9% (2015) to 6% (2024). Capital One Financial Corporation's net margin went from 16% (2015) to 9% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | 14.3 | 11.1 | -22.4% |
| Capital One Financi… (COF) | 28.5 | 15.4 | -46.0% |
Bread Financial Holdings, Inc. has traded in a 2x–14x P/E range over 8 years; current trailing P/E is ~13x. Capital One Financial Corporation has traded in a 5x–29x P/E range over 8 years; current trailing P/E is ~17x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | 8.85 | 5.5 | -37.9% |
| Capital One Financi… (COF) | 7.07 | 11.59 | +63.9% |
Bread Financial Holdings, Inc.'s EPS grew from $8.85 (2015) to $5.50 (2024) — a -5% CAGR. Capital One Financial Corporation's EPS grew from $7.07 (2015) to $11.59 (2024) — a 6% CAGR.
Chart 6Free Cash Flow — 5 Years
Bread Financial Holdings, Inc. generated $2B FCF in 2024 (+27% vs 2021). Capital One Financial Corporation generated $17B FCF in 2024 (+46% vs 2021).
BFH vs COF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is BFH or COF a better buy right now?
Bread Financial Holdings, Inc. (BFH) offers the better valuation at 12.9x trailing P/E (7.0x forward), making it the more compelling value choice. Analysts rate Capital One Financial Corporation (COF) a "Buy" — based on 56 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — BFH or COF?
On trailing P/E, Bread Financial Holdings, Inc. (BFH) is the cheapest at 12.9x versus Capital One Financial Corporation at 16.9x. On forward P/E, Bread Financial Holdings, Inc. is actually cheaper at 7.0x.
03Which is the better long-term investment — BFH or COF?
Over the past 5 years, Capital One Financial Corporation (COF) delivered a total return of +68.2%, compared to -5.6% for Bread Financial Holdings, Inc. (BFH). A $10,000 investment in COF five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: COF returned +228.4% versus BFH's -51.0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — BFH or COF?
By beta (market sensitivity over 5 years), Bread Financial Holdings, Inc. (BFH) is the lower-risk stock at 1.47β versus Capital One Financial Corporation's 1.53β — meaning COF is approximately 4% more volatile than BFH relative to the S&P 500. On balance sheet safety, Capital One Financial Corporation (COF) carries a lower debt/equity ratio of 75% versus 186% for Bread Financial Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — BFH or COF?
Capital One Financial Corporation (COF) is the more profitable company, earning 8.8% net margin versus 5.8% for Bread Financial Holdings, Inc. — meaning it keeps 8.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: COF leads at 11.0% versus 7.9% for BFH. At the gross margin level — before operating expenses — BFH leads at 50.9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is BFH or COF more undervalued right now?
On forward earnings alone, Bread Financial Holdings, Inc. (BFH) trades at 7.0x forward P/E versus 9.7x for Capital One Financial Corporation — 2.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for COF: 39.9% to $273.62.
07Which pays a better dividend — BFH or COF?
All stocks in this comparison pay dividends. Capital One Financial Corporation (COF) offers the highest yield at 1.2%, versus 1.2% for Bread Financial Holdings, Inc. (BFH).
08Is BFH or COF better for a retirement portfolio?
For long-horizon retirement investors, Capital One Financial Corporation (COF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1.2% yield, +228.4% 10Y return). Both have compounded well over 10 years (COF: +228.4%, BFH: -51.0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between BFH and COF?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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