Bread Financial vs Progressive Which Outperforms?

Bread Financial and Progressive are two companies in the financial services sector with distinct market positions and growth prospects. Bread Financial, a fintech company, offers innovative payment solutions, while Progressive is a leading provider of insurance products. Both companies are actively traded on the stock market, but investors may have different considerations when evaluating their performance. This analysis will compare the financials, market trends, and potential risks associated with investing in Bread Financial and Progressive stocks.

Bread Financial or Progressive?

When comparing Bread Financial and Progressive, 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 Progressive.

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 1.27%, while Progressive has a dividend yield of 0.47%. 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, Progressive reports a 5-year dividend growth of -18.68% year and a payout ratio of 8.53%.

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 10.52 and Progressive's P/E ratio at 17.53. 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 1.05 while Progressive's P/B ratio is 5.23.

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 -0.40%, while Progressive's is 0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bread Financial's ROE at 10.20% and Progressive's ROE at 35.04%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $65.67 for Bread Financial and $241.33 for Progressive. Over the past year, Bread Financial's prices ranged from $28.00 to $66.71, with a yearly change of 138.25%. Progressive's prices fluctuated between $149.14 and $270.62, with a yearly change of 81.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.