Comparing Galaxy Digital (NASDAQ:GLXY) and Bread Financial (NYSE:BFH)

Galaxy Digital (NASDAQ:GLXY) and Bread Financial (NYSE:BFH) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Galaxy Digital and Bread Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galaxy Digital	0	2	10	2	3.00
Bread Financial	3	7	4	0	2.07

Galaxy Digital currently has a consensus target price of $46.09, suggesting a potential upside of 38.91%. Bread Financial has a consensus target price of $78.82, suggesting a potential upside of 13.46%. Given Galaxy Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Galaxy Digital is more favorable than Bread Financial.

Profitability

This table compares Galaxy Digital and Bread Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galaxy Digital	N/A	N/A	N/A
Bread Financial	10.08%	15.97%	2.27%

Insider and Institutional Ownership

99.5% of Bread Financial shares are held by institutional investors. 0.6% of Bread Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Galaxy Digital and Bread Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galaxy Digital	N/A	N/A	N/A	$1.20	27.65
Bread Financial	$4.80 billion	0.66	$277.00 million	$9.82	7.07

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

Summary

Bread Financial beats Galaxy Digital on 7 of the 12 factors compared between the two stocks.

About Galaxy Digital

Galaxy Digital Holdings Ltd. is a financial services and an investment management company, which engages in the digital asset, cryptocurrency, and block chain technology sectors. It operates through the following segments: Trading, Principal Investment, Asset Management, Investment Banking, Mining, and Corporate & Other. The Trading segment manages positions in cryptocurrency and other liquid digital assets contributed to the business at the outset and continues to invest and trade in those and related assets. The Principal Investment segment includes portfolio of private principal investments across the block chain ecosystem, including early- and later-stage equity, pre-launch network contributions, and other structured alternative investments. The Asset Management segment manages capital on behalf of third parties in exchange for management fees and performance-based compensation. The Investment Banking segment offers the spectrum of investment banking, including, but not limited to general corporate advisory, mergers and acquisition, transaction advisory, restructuring and capital rising. The Mining segment focuses to provide financial services for North American miners, through its partnerships. The Corporate & Other consists of the partnership’s unallocated corporate overhead and other unallocated costs not identifiable to any of the reportable segments. The company was founded by Michael Edward Novogratz on February 10, 2006 and is headquartered in New York, NY.

About Bread Financial

Bread Financial Holdings, Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for private label and co-brand credit card programs, as well as through Bread partnerships; and Comenity-branded general purpose cash-back credit. The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs, and installment loans and split-pay products; and provides marketing, and data and analytics services. In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience. Further, the company through Bread, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products. It offers its products under the Bread CashbackTM, Bread PayTM, and Bread SavingsTM brands. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings, Inc. in March 2022. Bread Financial Holdings, Inc. was incorporated in 1995 and is headquartered in Columbus, Ohio.