Comprehensive Stock Comparison
Compare Ally Financial Inc. (ALLY) vs JPMorgan Chase & Co. (JPM) 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 | JPM | 14.6% revenue growth vs ALLY's -25.7% |
| Value | ALLY | Lower P/E (7.5x vs 13.9x) |
| Quality / Margins | JPM | 21.6% net margin vs ALLY's 7.0% |
| Stability / Safety | JPM | Beta 1.00 vs ALLY's 1.23 |
| Dividends | JPM | 1.7% yield; 14-year raise streak; ALLY pays no meaningful dividend |
| Momentum (1Y) | JPM | +15.7% vs ALLY's +9.5% |
| Efficiency (ROA) | JPM | 1.3% ROA vs ALLY's 0.4%, ROIC 5.4% 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.
JPMorgan Chase is a global financial services giant that operates as a universal bank offering consumer banking, investment banking, commercial banking, and asset management services. It generates revenue primarily through net interest income from lending activities (about 50% of total revenue) and non-interest income from investment banking fees, trading, asset management, and card services. The company's key competitive advantage lies in its massive scale, diversified revenue streams, and fortress balance sheet—which together create significant barriers to entry and provide stability through economic cycles.
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
JPM leads in 5 of 6 categories (Financial Metrics, Profitability & Efficiency). ALLY leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
JPM is the larger business by revenue, generating $270.8B annually — 22.3x ALLY's $12.2B. JPM is the more profitable business, keeping 21.6% of every revenue dollar as net income compared to ALLY's 7.0%.
| Metric | ALLYAlly Financial In… | JPMJPMorgan Chase & … |
|---|---|---|
| RevenueTrailing 12 months | $12.2B | $270.8B |
| EBITDAEarnings before interest/tax | $2.0B | $81.3B |
| Net IncomeAfter-tax profit | $852M | $58.0B |
| Free Cash FlowCash after capex | -$295M | -$119.7B |
| Gross MarginGross profit ÷ Revenue | +52.0% | +58.6% |
| Operating MarginEBIT ÷ Revenue | +8.6% | +27.7% |
| Net MarginNet income ÷ Revenue | +7.0% | +21.6% |
| FCF MarginFCF ÷ Revenue | — | -15.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +2.7% | +16.0% |
Valuation Metrics
At 15.2x trailing earnings, JPM trades at a 9% valuation discount to ALLY's 16.6x P/E. On an enterprise value basis, ALLY's 12.2x EV/EBITDA is more attractive than JPM's 13.1x.
| Metric | ALLYAlly Financial In… | JPMJPMorgan Chase & … |
|---|---|---|
| Market CapShares × price | $12.2B | $809.7B |
| Enterprise ValueMkt cap + debt − cash | $23.9B | $1.09T |
| Trailing P/EPrice ÷ TTM EPS | 16.64x | 15.21x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.47x | 13.93x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.17x |
| EV / EBITDAEnterprise value multiple | 12.16x | 13.15x |
| Price / SalesMarket cap ÷ Revenue | 1.00x | 2.99x |
| Price / BookPrice ÷ Book value/share | 0.80x | 2.51x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
JPM delivers a 16.1% return on equity — every $100 of shareholder capital generates $16 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 JPM's 2.18x. On the Piotroski fundamental quality scale (0–9), JPM scores 5/9 vs ALLY's 4/9, reflecting solid financial health.
| Metric | ALLYAlly Financial In… | JPMJPMorgan Chase & … |
|---|---|---|
| ROE (TTM)Return on equity | +5.5% | +16.1% |
| ROA (TTM)Return on assets | +0.4% | +1.3% |
| ROICReturn on invested capital | +2.2% | +5.4% |
| ROCEReturn on capital employed | +3.0% | +8.2% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 5 |
| Debt / EquityFinancial leverage | 1.40x | 2.18x |
| Net DebtTotal debt minus cash | $11.7B | $281.8B |
| Cash & Equiv.Liquid assets | $10.0B | $469.3B |
| Total DebtShort + long-term debt | $21.8B | $751.1B |
| Interest CoverageEBIT ÷ Interest expense | 0.22x | 0.74x |
Total Returns (with DRIP)
A $10,000 investment in JPM five years ago would be worth $21,449 today (with dividends reinvested), compared to $10,541 for ALLY. Over the past 12 months, JPM leads with a +15.7% total return vs ALLY's +9.5%. The 3-year compound annual growth rate (CAGR) favors JPM at 30.0% vs ALLY's 12.7% — a key indicator of consistent wealth creation.
| Metric | ALLYAlly Financial In… | JPMJPMorgan Chase & … |
|---|---|---|
| YTD ReturnYear-to-date | -13.2% | -7.3% |
| 1-Year ReturnPast 12 months | +9.5% | +15.7% |
| 3-Year ReturnCumulative with dividends | +43.2% | +119.7% |
| 5-Year ReturnCumulative with dividends | +5.4% | +114.5% |
| 10-Year ReturnCumulative with dividends | +172.9% | +497.7% |
| CAGR (3Y)Annualised 3-year return | +12.7% | +30.0% |
Risk & Volatility
JPM is the less volatile stock with a 1.00 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. JPM currently trades 89.0% from its 52-week high vs ALLY's 83.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ALLYAlly Financial In… | JPMJPMorgan Chase & … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.23x | 1.00x |
| 52-Week HighHighest price in past year | $47.27 | $337.25 |
| 52-Week LowLowest price in past year | $29.52 | $202.16 |
| % of 52W HighCurrent price vs 52-week peak | +83.4% | +89.0% |
| RSI (14)Momentum oscillator 0–100 | 49.3 | 48.1 |
| Avg Volume (50D)Average daily shares traded | 2.9M | 9.0M |
Analyst Outlook
Wall Street rates ALLY as "Buy" and JPM as "Buy". Consensus price targets imply 30.3% upside for ALLY (target: $51) vs 11.9% for JPM (target: $336). JPM is the only dividend payer here at 1.71% yield — a key consideration for income-focused portfolios.
| Metric | ALLYAlly Financial In… | JPMJPMorgan Chase & … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $51.40 | $336.10 |
| # AnalystsCovering analysts | 38 | 60 |
| Dividend YieldAnnual dividend ÷ price | — | +1.7% |
| Dividend StreakConsecutive years of raises | 0 | 14 |
| Dividend / ShareAnnual DPS | — | $5.13 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +3.5% |
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 | 171.17 | +71.2% |
| JPMorgan Chase & Co. (JPM) | 100 | 263.46 | +163.5% |
JPMorgan Chase & Co. (JPM) returned +114% over 5 years vs Ally Financial Inc. (ALLY)'s +5%. A $10,000 investment in JPM 5 years ago would be worth $21,449 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ally Financial Inc. (ALLY) | $9.8B | $12.2B | +23.8% |
| JPMorgan Chase & Co. (JPM) | $106.4B | $270.8B | +154.5% |
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% |
| JPMorgan Chase & Co. (JPM) | 23.2% | 21.6% | -7.1% |
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% |
| JPMorgan Chase & Co. (JPM) | 16.9 | 12.1 | -28.4% |
Ally Financial Inc. has traded in a 5x–20x P/E range over 9 years; current trailing P/E is ~17x. JPMorgan Chase & Co. has traded in a 10x–17x P/E range over 8 years; current trailing P/E is ~15x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ally Financial Inc. (ALLY) | 2.15 | 2.37 | +10.2% |
| JPMorgan Chase & Co. (JPM) | 6.19 | 19.75 | +219.1% |
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). JPMorgan Chase & Co. generated $-42B FCF in 2024 (-154% vs 2021).
ALLY vs JPM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ALLY or JPM a better buy right now?
JPMorgan Chase & Co. (JPM) offers the better valuation at 15.2x trailing P/E (13.9x 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 JPM?
On trailing P/E, JPMorgan Chase & Co. (JPM) is the cheapest at 15.2x versus Ally Financial Inc. at 16.6x. On forward P/E, Ally Financial Inc. is actually cheaper at 7.5x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — ALLY or JPM?
Over the past 5 years, JPMorgan Chase & Co. (JPM) delivered a total return of +114.5%, compared to +5.4% for Ally Financial Inc. (ALLY). A $10,000 investment in JPM five years ago would be worth approximately $21K today (assuming dividends reinvested). Over 10 years, the gap is even starker: JPM returned +497.7% versus ALLY's +172.9%. 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 JPM?
By beta (market sensitivity over 5 years), JPMorgan Chase & Co. (JPM) is the lower-risk stock at 1.00β versus Ally Financial Inc.'s 1.23β — meaning ALLY is approximately 23% more volatile than JPM relative to the S&P 500. On balance sheet safety, Ally Financial Inc. (ALLY) carries a lower debt/equity ratio of 140% versus 2% for JPMorgan Chase & Co. — giving it more financial flexibility in a downturn.
05Which has better profit margins — ALLY or JPM?
JPMorgan Chase & Co. (JPM) is the more profitable company, earning 21.6% net margin versus 7.0% for Ally Financial Inc. — meaning it keeps 21.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: JPM leads at 27.7% versus 8.6% for ALLY. At the gross margin level — before operating expenses — JPM leads at 58.6%, 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 JPM more undervalued right now?
On forward earnings alone, Ally Financial Inc. (ALLY) trades at 7.5x forward P/E versus 13.9x for JPMorgan Chase & Co. — 6.5x 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 JPM?
In this comparison, JPM (1.7% yield) pays a dividend. ALLY does not pay a meaningful dividend and should not be held primarily for income.
08Is ALLY or JPM better for a retirement portfolio?
For long-horizon retirement investors, JPMorgan Chase & Co. (JPM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.00), 1.7% yield, +497.7% 10Y return). Both have compounded well over 10 years (JPM: +497.7%, 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 JPM?
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. JPM pays a dividend while ALLY does not, making them suitable for different income and tax situations. 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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