Comprehensive Stock Comparison
Compare Ally Financial Inc. (ALLY) vs Medallion Financial Corp. (MFIN) 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 | MFIN | 14.6% revenue growth vs ALLY's -25.7% |
| Value | MFIN | Lower P/E (7.1x vs 7.5x) |
| Quality / Margins | MFIN | 12.3% net margin vs ALLY's 7.0% |
| Stability / Safety | MFIN | Beta 0.57 vs ALLY's 1.23, lower leverage |
| Dividends | MFIN | 3.9% yield; 3-year raise streak; ALLY pays no meaningful dividend |
| Momentum (1Y) | MFIN | +25.3% vs ALLY's +9.5% |
| Efficiency (ROA) | MFIN | 1.5% ROA vs ALLY's 0.4%, ROIC 6.8% 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.
Medallion Financial is a specialty finance company that provides loans for recreational vehicles, home improvements, commercial businesses, and taxi medallions. It generates revenue primarily through interest income from its lending segments — recreation lending, home improvement lending, commercial lending, and medallion lending — with the recreation segment being its largest. The company's competitive advantage lies in its specialized expertise in niche lending markets where traditional banks are less active, particularly in taxi medallion financing where it has deep industry knowledge.
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
MFIN leads in 4 of 6 categories — strongest in Valuation Metrics and Profitability & Efficiency. 2 categories are tied.
Financial Metrics (TTM)
ALLY is the larger business by revenue, generating $12.2B annually — 41.7x MFIN's $292M. MFIN is the more profitable business, keeping 12.3% of every revenue dollar as net income compared to ALLY's 7.0%.
| Metric | ALLYAlly Financial In… | MFINMedallion Financi… |
|---|---|---|
| RevenueTrailing 12 months | $12.2B | $292M |
| EBITDAEarnings before interest/tax | $2.0B | $86M |
| Net IncomeAfter-tax profit | $852M | $45M |
| Free Cash FlowCash after capex | -$295M | $121M |
| Gross MarginGross profit ÷ Revenue | +52.0% | +43.6% |
| Operating MarginEBIT ÷ Revenue | +8.6% | +21.6% |
| Net MarginNet income ÷ Revenue | +7.0% | +12.3% |
| FCF MarginFCF ÷ Revenue | — | +39.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +2.7% | -13.5% |
Valuation Metrics
At 6.6x trailing earnings, MFIN trades at a 60% valuation discount to ALLY's 16.6x P/E. On an enterprise value basis, MFIN's 7.1x EV/EBITDA is more attractive than ALLY's 12.2x.
| Metric | ALLYAlly Financial In… | MFINMedallion Financi… |
|---|---|---|
| Market CapShares × price | $12.2B | $298M |
| Enterprise ValueMkt cap + debt − cash | $23.9B | $489M |
| Trailing P/EPrice ÷ TTM EPS | 16.64x | 6.64x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.47x | 7.08x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.07x |
| EV / EBITDAEnterprise value multiple | 12.16x | 7.07x |
| Price / SalesMarket cap ÷ Revenue | 1.00x | 1.02x |
| Price / BookPrice ÷ Book value/share | 0.80x | 0.54x |
| Price / FCFMarket cap ÷ FCF | — | 2.58x |
Profitability & Efficiency
MFIN delivers a 9.0% return on equity — every $100 of shareholder capital generates $9 in annual profit, vs $5 for ALLY. MFIN carries lower financial leverage with a 0.66x debt-to-equity ratio, signaling a more conservative balance sheet compared to ALLY's 1.40x.
| Metric | ALLYAlly Financial In… | MFINMedallion Financi… |
|---|---|---|
| ROE (TTM)Return on equity | +5.5% | +9.0% |
| ROA (TTM)Return on assets | +0.4% | +1.5% |
| ROICReturn on invested capital | +2.2% | +6.8% |
| ROCEReturn on capital employed | +3.0% | +9.2% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 4 |
| Debt / EquityFinancial leverage | 1.40x | 0.66x |
| Net DebtTotal debt minus cash | $11.7B | $190M |
| Cash & Equiv.Liquid assets | $10.0B | $98M |
| Total DebtShort + long-term debt | $21.8B | $289M |
| Interest CoverageEBIT ÷ Interest expense | 0.22x | 0.80x |
Total Returns (with DRIP)
A $10,000 investment in MFIN five years ago would be worth $16,112 today (with dividends reinvested), compared to $10,541 for ALLY. Over the past 12 months, MFIN leads with a +25.3% total return vs ALLY's +9.5%. The 3-year compound annual growth rate (CAGR) favors ALLY at 12.7% vs MFIN's 9.8% — a key indicator of consistent wealth creation.
| Metric | ALLYAlly Financial In… | MFINMedallion Financi… |
|---|---|---|
| YTD ReturnYear-to-date | -13.2% | -0.9% |
| 1-Year ReturnPast 12 months | +9.5% | +25.3% |
| 3-Year ReturnCumulative with dividends | +43.2% | +32.5% |
| 5-Year ReturnCumulative with dividends | +5.4% | +61.1% |
| 10-Year ReturnCumulative with dividends | +172.9% | +50.0% |
| CAGR (3Y)Annualised 3-year return | +12.7% | +9.8% |
Risk & Volatility
MFIN is the less volatile stock with a 0.57 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. MFIN currently trades 91.7% 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… | MFINMedallion Financi… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.23x | 0.57x |
| 52-Week HighHighest price in past year | $47.27 | $11.00 |
| 52-Week LowLowest price in past year | $29.52 | $7.78 |
| % of 52W HighCurrent price vs 52-week peak | +83.4% | +91.7% |
| RSI (14)Momentum oscillator 0–100 | 49.3 | 47.8 |
| Avg Volume (50D)Average daily shares traded | 2.9M | 35K |
Analyst Outlook
Wall Street rates ALLY as "Buy" and MFIN as "Hold". MFIN is the only dividend payer here at 3.94% yield — a key consideration for income-focused portfolios.
| Metric | ALLYAlly Financial In… | MFINMedallion Financi… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $51.40 | — |
| # AnalystsCovering analysts | 38 | 9 |
| Dividend YieldAnnual dividend ÷ price | — | +3.9% |
| Dividend StreakConsecutive years of raises | 0 | 3 |
| Dividend / ShareAnnual DPS | — | $0.40 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +1.5% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Ally Financial Inc. (ALLY) | 100 | 168.17 | +68.2% |
| Medallion Financial… (MFIN) | 100 | 175.3 | +75.3% |
Medallion Financial… (MFIN) returned +61% over 5 years vs Ally Financial Inc. (ALLY)'s +5%. A $10,000 investment in MFIN 5 years ago would be worth $16,112 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ally Financial Inc. (ALLY) | $9.8B | $12.2B | +23.8% |
| Medallion Financial… (MFIN) | $105M | $292M | +178.3% |
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% |
| Medallion Financial… (MFIN) | 22.4% | 12.3% | -45.2% |
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% |
| Medallion Financial… (MFIN) | 353 | 6.2 | -98.2% |
Ally Financial Inc. has traded in a 5x–20x P/E range over 9 years; current trailing P/E is ~17x. Medallion Financial Corp. has traded in a 3x–353x P/E range over 6 years; current trailing P/E is ~7x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ally Financial Inc. (ALLY) | 2.15 | 2.37 | +10.2% |
| Medallion Financial… (MFIN) | 0.97 | 1.52 | +56.7% |
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). Medallion Financial Corp. generated $116M FCF in 2024 (+47% vs 2021).
ALLY vs MFIN: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ALLY or MFIN a better buy right now?
Medallion Financial Corp. (MFIN) offers the better valuation at 6.6x trailing P/E (7.1x 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 MFIN?
On trailing P/E, Medallion Financial Corp. (MFIN) is the cheapest at 6.6x versus Ally Financial Inc. at 16.6x. On forward P/E, Medallion Financial Corp. is actually cheaper at 7.1x.
03Which is the better long-term investment — ALLY or MFIN?
Over the past 5 years, Medallion Financial Corp. (MFIN) delivered a total return of +61.1%, compared to +5.4% for Ally Financial Inc. (ALLY). A $10,000 investment in MFIN five years ago would be worth approximately $16K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ALLY returned +172.9% versus MFIN's +50.0%. 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 — ALLY or MFIN?
By beta (market sensitivity over 5 years), Medallion Financial Corp. (MFIN) is the lower-risk stock at 0.57β versus Ally Financial Inc.'s 1.23β — meaning ALLY is approximately 115% more volatile than MFIN relative to the S&P 500. On balance sheet safety, Medallion Financial Corp. (MFIN) carries a lower debt/equity ratio of 66% versus 140% for Ally Financial Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — ALLY or MFIN?
Medallion Financial Corp. (MFIN) is the more profitable company, earning 12.3% net margin versus 7.0% for Ally Financial Inc. — meaning it keeps 12.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MFIN leads at 21.6% versus 8.6% for ALLY. At the gross margin level — before operating expenses — ALLY leads at 52.0%, 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 MFIN more undervalued right now?
On forward earnings alone, Medallion Financial Corp. (MFIN) trades at 7.1x forward P/E versus 7.5x for Ally Financial Inc. — 0.4x cheaper on a one-year earnings basis.
07Which pays a better dividend — ALLY or MFIN?
In this comparison, MFIN (3.9% yield) pays a dividend. ALLY does not pay a meaningful dividend and should not be held primarily for income.
08Is ALLY or MFIN better for a retirement portfolio?
For long-horizon retirement investors, Medallion Financial Corp. (MFIN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.57), 3.9% yield). Both have compounded well over 10 years (MFIN: +50.0%, 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 MFIN?
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. MFIN 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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