Analyzing Gentera (OTCMKTS:CMPRF) and Ally Financial (NYSE:ALLY)

Ally Financial (NYSE:ALLY) and Gentera (OTCMKTS:CMPRF) are both financial services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ally Financial and Gentera, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ally Financial	2	6	9	0	2.41
Gentera	0	0	0	0	N/A

Ally Financial presently has a consensus target price of $40.63, suggesting a potential upside of 16.17%. Given Ally Financial’s higher possible upside, equities research analysts clearly believe Ally Financial is more favorable than Gentera.

Dividends

Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.4%. Gentera pays an annual dividend of $1.10 per share and has a dividend yield of 92.8%. Ally Financial pays out 49.0% of its earnings in the form of a dividend. Gentera pays out 56.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Ally Financial and Gentera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ally Financial	10.26%	8.37%	0.48%
Gentera	N/A	N/A	N/A

Institutional & Insider Ownership

88.8% of Ally Financial shares are owned by institutional investors. Comparatively, 25.2% of Gentera shares are owned by institutional investors. 0.7% of Ally Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Ally Financial and Gentera”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ally Financial	$8.83 billion	1.20	$1.02 billion	$2.45	14.27
Gentera	N/A	N/A	N/A	$1.95	0.61

Ally Financial has higher revenue and earnings than Gentera. Gentera is trading at a lower price-to-earnings ratio than Ally Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Ally Financial beats Gentera on 11 of the 12 factors compared between the two stocks.

About Ally Financial

Ally Financial Inc., a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. The company operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments. The Automotive Finance Operations segment offers automotive financing services, including providing retail installment sales contracts, loans and operating leases, term loans to dealers, financing dealer floorplans and other lines of credit to dealers, warehouse lines to automotive retailers, and fleet financing. It also provides financing services to companies and municipalities for the purchase or lease of vehicles, and vehicle-remarketing services. The Insurance Operations segment offers consumer finance protection and insurance products through the automotive dealer channel, and commercial insurance products directly to dealers. This segment provides vehicle service and maintenance contract, and guaranteed asset protection products; and underwrites commercial insurance coverages, which primarily insure dealers’ vehicle inventory. The Mortgage Finance Operations segment manages consumer mortgage loan portfolio that includes bulk purchases of jumbo and low-to-moderate income mortgage loans originated by third parties, as well as direct-to-consumer mortgage offerings. The Corporate Finance Operations segment provides senior secured leveraged cash flow and asset-based loans to middle market companies; leveraged loans; and commercial real estate product to serve companies in the nursing facilities, senior housing, and medical office buildings. It also offers commercial banking products and services. In addition, it provides securities brokerage and investment advisory services. The company was formerly known as GMAC Inc. and changed its name to Ally Financial Inc. in May 2010. Ally Financial Inc. was founded in 1919 and is based in Detroit, Michigan.

About Gentera

Gentera, S. A. B. de C. V. provides various financial products and services in Mexico and Peru. The company offers individual and group credit, savings, insurance, and transactional channels services to entrepreneurs and microentrepreneurs. It also provides insurance agent services; and personal loans; as well as operates as a bank commission agent administrator that offers financial operations, payment of services, and cellphone top-ups services. The company was formerly known as Financiera Compartamos, S.A. B. de C. V. Gentera, S. A. B. de C. V. was founded in 1990 and is headquartered in Mexico City, Mexico.