Bread Financial vs Katapult Which Should You Buy?

Bread Financial and Katapult are two companies operating in the rapidly growing financial technology sector. Bread Financial offers consumers a buy now, pay later platform, while Katapult provides lease-to-own services for online purchases. Both companies have seen significant growth in recent years, attracting interest from investors seeking opportunities in the fintech industry. Understanding the key differences and potential for future success of Bread Financial and Katapult stocks is essential for investors looking to capitalize on this dynamic market.

Bread Financial or Katapult?

When comparing Bread Financial and Katapult, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Bread Financial and Katapult.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Bread Financial has a dividend yield of 1.76%, while Katapult has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bread Financial reports a 5-year dividend growth of -18.10% year and a payout ratio of 13.46%. On the other hand, Katapult reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Bread Financial P/E ratio at 9.49 and Katapult's P/E ratio at -0.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bread Financial P/B ratio is 0.95 while Katapult's P/B ratio is -0.75.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bread Financial has seen a 5-year revenue growth of -0.16%, while Katapult's is -0.60%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bread Financial's ROE at 10.20% and Katapult's ROE at 108.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $59.34 for Bread Financial and $6.83 for Katapult. Over the past year, Bread Financial's prices ranged from $26.27 to $63.01, with a yearly change of 139.86%. Katapult's prices fluctuated between $6.64 and $23.54, with a yearly change of 254.52%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.