Comprehensive Stock Comparison
Compare Ally Financial Inc. (ALLY) vs Credit Acceptance Corporation (CACC) 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 | CACC | 13.5% revenue growth vs ALLY's -25.7% |
| Value | ALLY | Lower P/E (7.5x vs 10.2x) |
| Quality / Margins | CACC | 11.6% net margin vs ALLY's 7.0% |
| Stability / Safety | CACC | Beta 1.13 vs ALLY's 1.23 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | ALLY | +9.5% vs CACC's -3.9% |
| Efficiency (ROA) | CACC | 5.3% ROA vs ALLY's 0.4%, ROIC 3.3% vs 2.2% |
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
Ally Financial is a digital financial services company that provides consumer and commercial banking products primarily through online channels. It generates revenue mainly from automotive financing (roughly 70% of total revenue) and insurance operations, supplemented by mortgage lending and corporate finance services. The company's key advantage is its low-cost digital-only operating model—without physical branches—which allows it to offer competitive rates while maintaining strong customer loyalty in its core auto lending business.
Credit Acceptance Corporation is a specialty finance company that provides auto loan financing programs to independent and franchised car dealers across the United States. It makes money primarily through interest income from consumer auto loans — which it either purchases from dealers or services for them — and secondarily through reinsurance premiums from vehicle service contracts. The company's key advantage is its proprietary credit scoring technology and extensive dealer network, which allow it to profitably serve subprime borrowers that traditional lenders often avoid.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
CACC leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). ALLY leads in 2 (Valuation Metrics, Total Returns).
Financial Metrics (TTM)
ALLY is the larger business by revenue, generating $12.2B annually — 5.7x CACC's $2.1B. Profitability is closely matched — net margins range from 11.6% (CACC) to 7.0% (ALLY).
| Metric | ALLYAlly Financial In… | CACCCredit Acceptance… |
|---|---|---|
| RevenueTrailing 12 months | $12.2B | $2.1B |
| EBITDAEarnings before interest/tax | $2.0B | $598M |
| Net IncomeAfter-tax profit | $852M | $454M |
| Free Cash FlowCash after capex | -$295M | $1.1B |
| Gross MarginGross profit ÷ Revenue | +52.0% | +62.4% |
| Operating MarginEBIT ÷ Revenue | +8.6% | +15.2% |
| Net MarginNet income ÷ Revenue | +7.0% | +11.6% |
| FCF MarginFCF ÷ Revenue | — | +53.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +2.7% | +48.5% |
Valuation Metrics
At 16.6x trailing earnings, ALLY trades at a 30% valuation discount to CACC's 23.8x P/E. On an enterprise value basis, ALLY's 12.2x EV/EBITDA is more attractive than CACC's 30.4x.
| Metric | ALLYAlly Financial In… | CACCCredit Acceptance… |
|---|---|---|
| Market CapShares × price | $12.2B | $5.2B |
| Enterprise ValueMkt cap + debt − cash | $23.9B | $10.7B |
| Trailing P/EPrice ÷ TTM EPS | 16.64x | 23.80x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.47x | 10.24x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 12.16x | 30.41x |
| Price / SalesMarket cap ÷ Revenue | 1.00x | 2.45x |
| Price / BookPrice ÷ Book value/share | 0.80x | 3.37x |
| Price / FCFMarket cap ÷ FCF | — | 4.60x |
Profitability & Efficiency
CACC delivers a 28.7% return on equity — every $100 of shareholder capital generates $29 in annual profit, vs $5 for ALLY. ALLY carries lower financial leverage with a 1.40x debt-to-equity ratio, signaling a more conservative balance sheet compared to CACC's 3.63x.
| Metric | ALLYAlly Financial In… | CACCCredit Acceptance… |
|---|---|---|
| ROE (TTM)Return on equity | +5.5% | +28.7% |
| ROA (TTM)Return on assets | +0.4% | +5.3% |
| ROICReturn on invested capital | +2.2% | +3.3% |
| ROCEReturn on capital employed | +3.0% | +3.6% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 4 |
| Debt / EquityFinancial leverage | 1.40x | 3.63x |
| Net DebtTotal debt minus cash | $11.7B | $5.5B |
| Cash & Equiv.Liquid assets | $10.0B | $845M |
| Total DebtShort + long-term debt | $21.8B | $6.4B |
| Interest CoverageEBIT ÷ Interest expense | 0.22x | — |
Total Returns (with DRIP)
A $10,000 investment in CACC five years ago would be worth $12,502 today (with dividends reinvested), compared to $10,541 for ALLY. Over the past 12 months, ALLY leads with a +9.5% total return vs CACC's -3.9%. The 3-year compound annual growth rate (CAGR) favors ALLY at 12.7% vs CACC's 2.1% — a key indicator of consistent wealth creation.
| Metric | ALLYAlly Financial In… | CACCCredit Acceptance… |
|---|---|---|
| YTD ReturnYear-to-date | -13.2% | +4.2% |
| 1-Year ReturnPast 12 months | +9.5% | -3.9% |
| 3-Year ReturnCumulative with dividends | +43.2% | +6.5% |
| 5-Year ReturnCumulative with dividends | +5.4% | +25.0% |
| 10-Year ReturnCumulative with dividends | +172.9% | +140.1% |
| CAGR (3Y)Annualised 3-year return | +12.7% | +2.1% |
Risk & Volatility
CACC is the less volatile stock with a 1.13 beta — it tends to amplify market swings less than ALLY's 1.23 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ALLYAlly Financial In… | CACCCredit Acceptance… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.23x | 1.13x |
| 52-Week HighHighest price in past year | $47.27 | $549.75 |
| 52-Week LowLowest price in past year | $29.52 | $401.90 |
| % of 52W HighCurrent price vs 52-week peak | +83.4% | +86.1% |
| RSI (14)Momentum oscillator 0–100 | 49.3 | 50.7 |
| Avg Volume (50D)Average daily shares traded | 2.9M | 151K |
Analyst Outlook
Wall Street rates ALLY as "Buy" and CACC as "Hold". Consensus price targets imply 30.3% upside for ALLY (target: $51) vs 1.4% for CACC (target: $480).
| Metric | ALLYAlly Financial In… | CACCCredit Acceptance… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $51.40 | $480.00 |
| # AnalystsCovering analysts | 38 | 18 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 0 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +6.0% |
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 |
|---|---|---|---|
| Ally Financial Inc. (ALLY) | 100 | 164.56 | +64.6% |
| Credit Acceptance C… (CACC) | 100 | 128.57 | +28.6% |
Credit Acceptance C… (CACC) returned +25% over 5 years vs Ally Financial Inc. (ALLY)'s +5%. A $10,000 investment in CACC 5 years ago would be worth $12,502 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ally Financial Inc. (ALLY) | $9.8B | $12.2B | +23.8% |
| Credit Acceptance C… (CACC) | $965M | $2.1B | +121.1% |
Ally Financial Inc.'s revenue grew from $9.8B (2016) to $12.2B (2025) — a 2.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ally Financial Inc. (ALLY) | 10.9% | 7.0% | -35.5% |
| Credit Acceptance C… (CACC) | 34.5% | 11.6% | -66.3% |
Ally Financial Inc.'s net margin went from 11% (2016) to 7% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Ally Financial Inc. (ALLY) | 14.3 | 19.1 | +33.6% |
| Credit Acceptance C… (CACC) | 13.5 | 23.6 | +74.8% |
Ally Financial Inc. has traded in a 5x–20x P/E range over 9 years; current trailing P/E is ~17x. Credit Acceptance Corporation has traded in a 12x–24x P/E range over 8 years; current trailing P/E is ~24x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ally Financial Inc. (ALLY) | 2.15 | 2.37 | +10.2% |
| Credit Acceptance C… (CACC) | 16.31 | 19.88 | +21.9% |
Ally Financial Inc.'s EPS grew from $2.15 (2016) to $2.37 (2025) — a 1% CAGR.
Chart 6Free Cash Flow — 5 Years
Ally Financial Inc. generated $0M FCF in 2025 (+100% vs 2021). Credit Acceptance Corporation generated $1B FCF in 2024 (+7% vs 2021).
ALLY vs CACC: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ALLY or CACC a better buy right now?
Ally Financial Inc. (ALLY) offers the better valuation at 16.6x trailing P/E (7.5x forward), making it the more compelling value choice. Analysts rate Ally Financial Inc. (ALLY) a "Buy" — based on 38 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 — ALLY or CACC?
On trailing P/E, Ally Financial Inc. (ALLY) is the cheapest at 16.6x versus Credit Acceptance Corporation at 23.8x. On forward P/E, Ally Financial Inc. is actually cheaper at 7.5x.
03Which is the better long-term investment — ALLY or CACC?
Over the past 5 years, Credit Acceptance Corporation (CACC) delivered a total return of +25.0%, compared to +5.4% for Ally Financial Inc. (ALLY). A $10,000 investment in CACC five years ago would be worth approximately $13K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ALLY returned +172.9% versus CACC's +140.1%. 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 — ALLY or CACC?
By beta (market sensitivity over 5 years), Credit Acceptance Corporation (CACC) is the lower-risk stock at 1.13β versus Ally Financial Inc.'s 1.23β — meaning ALLY is approximately 9% more volatile than CACC relative to the S&P 500. On balance sheet safety, Ally Financial Inc. (ALLY) carries a lower debt/equity ratio of 140% versus 4% for Credit Acceptance Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — ALLY or CACC?
Credit Acceptance Corporation (CACC) is the more profitable company, earning 11.6% net margin versus 7.0% for Ally Financial Inc. — meaning it keeps 11.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CACC leads at 15.2% versus 8.6% for ALLY. At the gross margin level — before operating expenses — CACC leads at 62.4%, 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 ALLY or CACC more undervalued right now?
On forward earnings alone, Ally Financial Inc. (ALLY) trades at 7.5x forward P/E versus 10.2x for Credit Acceptance Corporation — 2.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ALLY: 30.3% to $51.40.
07Which pays a better dividend — ALLY or CACC?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is ALLY or CACC better for a retirement portfolio?
For long-horizon retirement investors, Credit Acceptance Corporation (CACC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.13), +140.1% 10Y return). Both have compounded well over 10 years (CACC: +140.1%, ALLY: +172.9%), 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 ALLY and CACC?
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. In terms of investment character: ALLY is a mid-cap deep-value stock; CACC is a small-cap quality compounder stock. 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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