Comprehensive Stock Comparison
Compare Bread Financial Holdings, Inc. (BFH) vs OneMain Holdings, Inc. (OMF) 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 | OMF | 9.1% revenue growth vs BFH's -7.3% |
| Value | BFH | Lower P/E (7.0x vs 7.3x) |
| Quality / Margins | OMF | 12.5% net margin vs BFH's 5.8% |
| Stability / Safety | BFH | Beta 1.47 vs OMF's 1.47, lower leverage |
| Dividends | OMF | 9.4% yield, 2-year raise streak, vs BFH's 1.2% |
| Momentum (1Y) | BFH | +32.9% vs OMF's +10.2% |
| Efficiency (ROA) | OMF | 2.6% ROA vs BFH's 2.2%, ROIC 6.9% vs 3.3% |
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.
OneMain Holdings is a consumer finance company that provides personal loans — both secured and unsecured — to non-prime borrowers. It makes money primarily from interest income on these loans, supplemented by fees and insurance products sold alongside the lending. Its competitive advantage lies in its extensive physical branch network — approximately 1,400 locations — which allows for local underwriting and customer relationships in a segment often underserved by traditional banks.
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
OMF leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). BFH leads in 3 (Valuation Metrics, Total Returns).
Financial Metrics (TTM)
OMF and BFH operate at a comparable scale, with $6.2B and $4.8B in trailing revenue. OMF is the more profitable business, keeping 12.5% of every revenue dollar as net income compared to BFH's 5.8%.
| Metric | BFHBread Financial H… | OMFOneMain Holdings,… |
|---|---|---|
| RevenueTrailing 12 months | $4.8B | $6.2B |
| EBITDAEarnings before interest/tax | $623M | $1.2B |
| Net IncomeAfter-tax profit | $472M | $705M |
| Free Cash FlowCash after capex | $2.0B | $3.0B |
| Gross MarginGross profit ÷ Revenue | +50.9% | +69.5% |
| Operating MarginEBIT ÷ Revenue | +7.9% | +37.5% |
| Net MarginNet income ÷ Revenue | +5.8% | +12.5% |
| FCF MarginFCF ÷ Revenue | +38.7% | +50.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +100.0% | +27.5% |
Valuation Metrics
At 8.4x trailing earnings, OMF trades at a 35% valuation discount to BFH's 12.9x P/E. On an enterprise value basis, BFH's 10.7x EV/EBITDA is more attractive than OMF's 12.1x.
| Metric | BFHBread Financial H… | OMFOneMain Holdings,… |
|---|---|---|
| Market CapShares × price | $3.1B | $6.5B |
| Enterprise ValueMkt cap + debt − cash | $5.1B | $28.3B |
| Trailing P/EPrice ÷ TTM EPS | 12.88x | 8.39x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.03x | 7.30x |
| PEG RatioP/E ÷ EPS growth rate | — | 2.13x |
| EV / EBITDAEnterprise value multiple | 10.75x | 12.09x |
| Price / SalesMarket cap ÷ Revenue | 0.64x | 1.04x |
| Price / BookPrice ÷ Book value/share | 1.17x | 1.93x |
| Price / FCFMarket cap ÷ FCF | 1.64x | 2.08x |
Profitability & Efficiency
OMF delivers a 20.9% return on equity — every $100 of shareholder capital generates $21 in annual profit, vs $14 for BFH. BFH carries lower financial leverage with a 1.86x debt-to-equity ratio, signaling a more conservative balance sheet compared to OMF's 6.67x. On the Piotroski fundamental quality scale (0–9), OMF scores 7/9 vs BFH's 3/9, reflecting strong financial health.
| Metric | BFHBread Financial H… | OMFOneMain Holdings,… |
|---|---|---|
| ROE (TTM)Return on equity | +14.2% | +20.9% |
| ROA (TTM)Return on assets | +2.2% | +2.6% |
| ROICReturn on invested capital | +3.3% | +6.9% |
| ROCEReturn on capital employed | +2.4% | +8.8% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 7 |
| Debt / EquityFinancial leverage | 1.86x | 6.67x |
| Net DebtTotal debt minus cash | $2.0B | $21.8B |
| Cash & Equiv.Liquid assets | $3.7B | $914M |
| Total DebtShort + long-term debt | $5.7B | $22.7B |
| Interest CoverageEBIT ÷ Interest expense | 0.61x | 0.73x |
Total Returns (with DRIP)
A $10,000 investment in OMF five years ago would be worth $16,126 today (with dividends reinvested), compared to $9,442 for BFH. Over the past 12 months, BFH leads with a +32.9% total return vs OMF's +10.2%. The 3-year compound annual growth rate (CAGR) favors BFH at 21.4% vs OMF's 16.1% — a key indicator of consistent wealth creation.
| Metric | BFHBread Financial H… | OMFOneMain Holdings,… |
|---|---|---|
| YTD ReturnYear-to-date | -5.6% | -18.8% |
| 1-Year ReturnPast 12 months | +32.9% | +10.2% |
| 3-Year ReturnCumulative with dividends | +78.8% | +56.3% |
| 5-Year ReturnCumulative with dividends | -5.6% | +61.3% |
| 10-Year ReturnCumulative with dividends | -51.0% | +301.6% |
| CAGR (3Y)Annualised 3-year return | +21.4% | +16.1% |
Risk & Volatility
BFH is the less volatile stock with a 1.47 beta — it tends to amplify market swings less than OMF's 1.47 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 OMF's 76.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | BFHBread Financial H… | OMFOneMain Holdings,… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.47x | 1.47x |
| 52-Week HighHighest price in past year | $82.03 | $71.93 |
| 52-Week LowLowest price in past year | $38.21 | $38.00 |
| % of 52W HighCurrent price vs 52-week peak | +86.4% | +76.5% |
| RSI (14)Momentum oscillator 0–100 | 60.7 | 40.7 |
| Avg Volume (50D)Average daily shares traded | 749K | 1.2M |
Analyst Outlook
Wall Street rates BFH as "Hold" and OMF as "Buy". Consensus price targets imply 31.9% upside for OMF (target: $73) vs 11.7% for BFH (target: $79). For income investors, OMF offers the higher dividend yield at 9.37% vs BFH's 1.20%.
| Metric | BFHBread Financial H… | OMFOneMain Holdings,… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $79.17 | $72.57 |
| # AnalystsCovering analysts | 37 | 30 |
| Dividend YieldAnnual dividend ÷ price | +1.2% | +9.4% |
| Dividend StreakConsecutive years of raises | 1 | 2 |
| Dividend / ShareAnnual DPS | $0.85 | $5.16 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.8% | 0.0% |
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 |
|---|---|---|---|
| Bread Financial Hol… (BFH) | 100 | 106.41 | +6.4% |
| OneMain Holdings, I… (OMF) | 100 | 169.46 | +69.5% |
OneMain Holdings, I… (OMF) returned +61% over 5 years vs Bread Financial Hol… (BFH)'s -6%. A $10,000 investment in OMF 5 years ago would be worth $16,126 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | $7.1B | $4.8B | -32.8% |
| OneMain Holdings, I… (OMF) | $3.7B | $6.2B | +67.4% |
OneMain Holdings, Inc.'s revenue grew from $3.7B (2016) to $6.2B (2025) — a 5.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | 7.2% | 5.8% | -20.1% |
| OneMain Holdings, I… (OMF) | 5.8% | 12.5% | +117.6% |
OneMain Holdings, Inc.'s net margin went from 6% (2016) to 13% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | 14.3 | 11.1 | -22.4% |
| OneMain Holdings, I… (OMF) | 19.3 | 10.3 | -46.6% |
Bread Financial Holdings, Inc. has traded in a 2x–14x P/E range over 8 years; current trailing P/E is ~13x. OneMain Holdings, Inc. has traded in a 5x–19x P/E range over 9 years; current trailing P/E is ~8x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Bread Financial Hol… (BFH) | 7.34 | 5.5 | -25.1% |
| OneMain Holdings, I… (OMF) | 1.59 | 6.56 | +312.6% |
OneMain Holdings, Inc.'s EPS grew from $1.59 (2016) to $6.56 (2025) — a 17% CAGR.
Chart 6Free Cash Flow — 5 Years
Bread Financial Holdings, Inc. generated $2B FCF in 2024 (+27% vs 2021). OneMain Holdings, Inc. generated $3B FCF in 2025 (+39% vs 2021).
BFH vs OMF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is BFH or OMF a better buy right now?
OneMain Holdings, Inc. (OMF) offers the better valuation at 8.4x trailing P/E (7.3x forward), making it the more compelling value choice. Analysts rate OneMain Holdings, Inc. (OMF) a "Buy" — based on 30 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 OMF?
On trailing P/E, OneMain Holdings, Inc. (OMF) is the cheapest at 8.4x versus Bread Financial Holdings, Inc. at 12.9x. On forward P/E, Bread Financial Holdings, Inc. is actually cheaper at 7.0x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — BFH or OMF?
Over the past 5 years, OneMain Holdings, Inc. (OMF) delivered a total return of +61.3%, compared to -5.6% for Bread Financial Holdings, Inc. (BFH). A $10,000 investment in OMF five years ago would be worth approximately $16K today (assuming dividends reinvested). Over 10 years, the gap is even starker: OMF returned +301.6% 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 OMF?
By beta (market sensitivity over 5 years), Bread Financial Holdings, Inc. (BFH) is the lower-risk stock at 1.47β versus OneMain Holdings, Inc.'s 1.47β — meaning OMF is approximately 0% more volatile than BFH relative to the S&P 500. On balance sheet safety, Bread Financial Holdings, Inc. (BFH) carries a lower debt/equity ratio of 186% versus 7% for OneMain Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — BFH or OMF?
OneMain Holdings, Inc. (OMF) is the more profitable company, earning 12.5% net margin versus 5.8% for Bread Financial Holdings, Inc. — meaning it keeps 12.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: OMF leads at 37.5% versus 7.9% for BFH. At the gross margin level — before operating expenses — OMF leads at 69.5%, 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 OMF more undervalued right now?
On forward earnings alone, Bread Financial Holdings, Inc. (BFH) trades at 7.0x forward P/E versus 7.3x for OneMain Holdings, Inc. — 0.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for OMF: 31.9% to $72.57.
07Which pays a better dividend — BFH or OMF?
All stocks in this comparison pay dividends. OneMain Holdings, Inc. (OMF) offers the highest yield at 9.4%, versus 1.2% for Bread Financial Holdings, Inc. (BFH).
08Is BFH or OMF better for a retirement portfolio?
For long-horizon retirement investors, OneMain Holdings, Inc. (OMF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (9.4% yield, +301.6% 10Y return). Both have compounded well over 10 years (OMF: +301.6%, 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 OMF?
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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