Comprehensive Stock Comparison
Compare Ally Financial Inc. (ALLY) vs Consumer Portfolio Services, Inc. (CPSS) 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 | CPSS | 11.8% revenue growth vs ALLY's -25.7% |
| Value | CPSS | Lower P/E (3.3x vs 7.5x) |
| Quality / Margins | ALLY | 7.0% net margin vs CPSS's 4.9% |
| Stability / Safety | CPSS | Beta 0.46 vs ALLY's 1.23 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | ALLY | +9.5% vs CPSS's -19.0% |
| Efficiency (ROA) | CPSS | 0.5% ROA vs ALLY's 0.4%, ROIC 0.7% 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.
Consumer Portfolio Services is a specialty finance company that purchases and services subprime auto loans from car dealerships. It generates revenue primarily from interest income on these auto loans — which constitute nearly all of its earnings — supplemented by fees from loan servicing and ancillary products. The company's competitive advantage lies in its specialized underwriting expertise for non-prime borrowers and established relationships with dealership networks that provide a steady flow of loan originations.
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
ALLY leads in 2 of 6 categories (Financial Metrics, Total Returns). CPSS leads in 1 (Valuation Metrics). 2 tied.
Financial Metrics (TTM)
ALLY is the larger business by revenue, generating $12.2B annually — 30.9x CPSS's $394M. Profitability is closely matched — net margins range from 7.0% (ALLY) to 4.9% (CPSS).
| Metric | ALLYAlly Financial In… | CPSSConsumer Portfoli… |
|---|---|---|
| RevenueTrailing 12 months | $12.2B | $394M |
| EBITDAEarnings before interest/tax | $2.0B | $29M |
| Net IncomeAfter-tax profit | $852M | $19M |
| Free Cash FlowCash after capex | -$295M | $281M |
| Gross MarginGross profit ÷ Revenue | +52.0% | +52.7% |
| Operating MarginEBIT ÷ Revenue | +8.6% | +7.0% |
| Net MarginNet income ÷ Revenue | +7.0% | +4.9% |
| FCF MarginFCF ÷ Revenue | — | +59.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +2.7% | 0.0% |
Valuation Metrics
At 10.3x trailing earnings, CPSS trades at a 38% valuation discount to ALLY's 16.6x P/E. On an enterprise value basis, ALLY's 12.2x EV/EBITDA is more attractive than CPSS's 113.1x.
| Metric | ALLYAlly Financial In… | CPSSConsumer Portfoli… |
|---|---|---|
| Market CapShares × price | $12.2B | $179M |
| Enterprise ValueMkt cap + debt − cash | $23.9B | $3.2B |
| Trailing P/EPrice ÷ TTM EPS | 16.64x | 10.25x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.47x | 3.31x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.35x |
| EV / EBITDAEnterprise value multiple | 12.16x | 113.07x |
| Price / SalesMarket cap ÷ Revenue | 1.00x | 0.46x |
| Price / BookPrice ÷ Book value/share | 0.80x | 0.67x |
| Price / FCFMarket cap ÷ FCF | — | 0.77x |
Profitability & Efficiency
CPSS delivers a 6.3% return on equity — every $100 of shareholder capital generates $6 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 CPSS's 10.78x.
| Metric | ALLYAlly Financial In… | CPSSConsumer Portfoli… |
|---|---|---|
| ROE (TTM)Return on equity | +5.5% | +6.3% |
| ROA (TTM)Return on assets | +0.4% | +0.5% |
| ROICReturn on invested capital | +2.2% | +0.7% |
| ROCEReturn on capital employed | +3.0% | +0.9% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 4 |
| Debt / EquityFinancial leverage | 1.40x | 10.78x |
| Net DebtTotal debt minus cash | $11.7B | $3.0B |
| Cash & Equiv.Liquid assets | $10.0B | $137M |
| Total DebtShort + long-term debt | $21.8B | $3.2B |
| Interest CoverageEBIT ÷ Interest expense | 0.22x | 0.12x |
Total Returns (with DRIP)
A $10,000 investment in CPSS five years ago would be worth $18,881 today (with dividends reinvested), compared to $10,541 for ALLY. Over the past 12 months, ALLY leads with a +9.5% total return vs CPSS's -19.0%. The 3-year compound annual growth rate (CAGR) favors ALLY at 12.7% vs CPSS's -9.9% — a key indicator of consistent wealth creation.
| Metric | ALLYAlly Financial In… | CPSSConsumer Portfoli… |
|---|---|---|
| YTD ReturnYear-to-date | -13.2% | -11.7% |
| 1-Year ReturnPast 12 months | +9.5% | -19.0% |
| 3-Year ReturnCumulative with dividends | +43.2% | -26.8% |
| 5-Year ReturnCumulative with dividends | +5.4% | +88.8% |
| 10-Year ReturnCumulative with dividends | +172.9% | +84.5% |
| CAGR (3Y)Annualised 3-year return | +12.7% | -9.9% |
Risk & Volatility
CPSS is the less volatile stock with a 0.46 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. ALLY currently trades 83.4% from its 52-week high vs CPSS's 77.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ALLYAlly Financial In… | CPSSConsumer Portfoli… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.23x | 0.46x |
| 52-Week HighHighest price in past year | $47.27 | $10.51 |
| 52-Week LowLowest price in past year | $29.52 | $6.67 |
| % of 52W HighCurrent price vs 52-week peak | +83.4% | +77.1% |
| RSI (14)Momentum oscillator 0–100 | 49.3 | 47.6 |
| Avg Volume (50D)Average daily shares traded | 2.9M | 14K |
Analyst Outlook
Wall Street rates ALLY as "Buy" and CPSS as "Buy".
| Metric | ALLYAlly Financial In… | CPSSConsumer Portfoli… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $51.40 | — |
| # AnalystsCovering analysts | 38 | 4 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 0 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +7.2% |
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% |
| Consumer Portfolio … (CPSS) | 100 | 244.57 | +144.6% |
Consumer Portfolio … (CPSS) returned +89% over 5 years vs Ally Financial Inc. (ALLY)'s +5%. A $10,000 investment in CPSS 5 years ago would be worth $18,881 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ally Financial Inc. (ALLY) | $9.8B | $12.2B | +23.8% |
| Consumer Portfolio … (CPSS) | $422M | $394M | -6.8% |
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% |
| Consumer Portfolio … (CPSS) | 6.9% | 4.9% | -29.7% |
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% |
| Consumer Portfolio … (CPSS) | 29.6 | 13.7 | -53.7% |
Ally Financial Inc. has traded in a 5x–20x P/E range over 9 years; current trailing P/E is ~17x. Consumer Portfolio Services, Inc. has traded in a 3x–30x P/E range over 8 years; current trailing P/E is ~10x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ally Financial Inc. (ALLY) | 2.15 | 2.37 | +10.2% |
| Consumer Portfolio … (CPSS) | 1.01 | 0.79 | -21.8% |
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). Consumer Portfolio Services, Inc. generated $233M FCF in 2024 (+19% vs 2021).
ALLY vs CPSS: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ALLY or CPSS a better buy right now?
Consumer Portfolio Services, Inc. (CPSS) offers the better valuation at 10.3x trailing P/E (3.3x 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 CPSS?
On trailing P/E, Consumer Portfolio Services, Inc. (CPSS) is the cheapest at 10.3x versus Ally Financial Inc. at 16.6x. On forward P/E, Consumer Portfolio Services, Inc. is actually cheaper at 3.3x.
03Which is the better long-term investment — ALLY or CPSS?
Over the past 5 years, Consumer Portfolio Services, Inc. (CPSS) delivered a total return of +88.8%, compared to +5.4% for Ally Financial Inc. (ALLY). A $10,000 investment in CPSS five years ago would be worth approximately $19K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ALLY returned +172.9% versus CPSS's +84.5%. 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 CPSS?
By beta (market sensitivity over 5 years), Consumer Portfolio Services, Inc. (CPSS) is the lower-risk stock at 0.46β versus Ally Financial Inc.'s 1.23β — meaning ALLY is approximately 166% more volatile than CPSS relative to the S&P 500. On balance sheet safety, Ally Financial Inc. (ALLY) carries a lower debt/equity ratio of 140% versus 11% for Consumer Portfolio Services, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — ALLY or CPSS?
Ally Financial Inc. (ALLY) is the more profitable company, earning 7.0% net margin versus 4.9% for Consumer Portfolio Services, Inc. — meaning it keeps 7.0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ALLY leads at 8.6% versus 7.0% for CPSS. At the gross margin level — before operating expenses — CPSS leads at 52.7%, 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 CPSS more undervalued right now?
On forward earnings alone, Consumer Portfolio Services, Inc. (CPSS) trades at 3.3x forward P/E versus 7.5x for Ally Financial Inc. — 4.2x cheaper on a one-year earnings basis.
07Which pays a better dividend — ALLY or CPSS?
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 CPSS better for a retirement portfolio?
For long-horizon retirement investors, Consumer Portfolio Services, Inc. (CPSS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.46)). Both have compounded well over 10 years (CPSS: +84.5%, 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 CPSS?
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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