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ALLY vs CNA

ALLY
Ally Financial Inc.
BULLISH
Price
$42.24
Market Cap
$13.06B
Sector
Financial Services
AI Confidence
75%
CNA
CNA Financial Corporation
NEUTRAL
Price
$48.18
Market Cap
$13.04B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
ALLY
17.97
CNA
10.27
Forward P/E
ALLY
6.67
CNA
10.04
P/B Ratio
ALLY
0.99
CNA
1.12
P/S Ratio
ALLY
1.77
CNA
0.87
EV/EBITDA
ALLY
--
CNA
7.39

Profitability

Gross Margin
ALLY
0.0%
CNA
32.0%
Operating Margin
ALLY
20.4%
CNA
10.81%
Profit Margin
ALLY
11.55%
CNA
8.53%
ROE
ALLY
5.8%
CNA
11.55%
ROA
ALLY
0.44%
CNA
1.61%

Growth

Revenue Growth
ALLY
12.0%
CNA
3.8%
Earnings Growth
ALLY
265.4%
CNA
1333.5%

Financial Health

Debt/Equity
ALLY
--
CNA
0.27
Current Ratio
ALLY
--
CNA
0.37
Quick Ratio
ALLY
--
CNA
0.18

Dividends

Dividend Yield
ALLY
2.82%
CNA
3.99%
Payout Ratio
ALLY
50.63%
CNA
39.23%

AI Verdict

ALLY BULLISH

Ally Financial exhibits a stable health profile with a Piotroski F-Score of 4/9 and is significantly undervalued relative to its Graham Number ($47.52) and Intrinsic Value ($69.33). The company shows explosive earnings growth (265.4% YoY) and a highly attractive Forward P/E of 6.67 and PEG of 0.47. While low ROE (5.8%) and a bearish technical trend (0/100) present short-term headwinds, the fundamental valuation gap provides a substantial margin of safety. The stock is currently trading below book value (P/B 0.99), suggesting a strong entry point for value-oriented investors.

Strengths
Significant undervaluation relative to Graham Number ($47.52) and Intrinsic Value ($69.33)
Exceptional earnings growth (265.4% YoY) and strong quarterly beat record
Highly attractive valuation metrics including a Forward P/E of 6.67 and PEG of 0.47
Risks
Weak profitability efficiency with low ROE (5.8%) and ROA (0.44%)
Bearish technical trend (0/100) indicating short-term price pressure
High volatility in quarterly earnings, evidenced by a massive miss in April 2025
CNA NEUTRAL

CNA presents a classic deep-value profile with a Piotroski F-Score of 4/9 (Stable) and a current price ($48.18) trading significantly below both its Graham Number ($67.31) and Intrinsic Value ($138.36). While valuation metrics like the P/E (10.27) and PEG (0.92) are highly attractive, the stock is hampered by bearish insider sentiment and a negative technical trend. The massive YoY earnings growth is likely a statistical anomaly, as recent Q/Q and YoY EPS growth are actually negative. The company's stability is bolstered by its 92% ownership by Loews Corporation, but the lack of analyst conviction and insider selling suggest a lack of immediate catalysts.

Strengths
Significant undervaluation relative to Graham Number and Intrinsic Value
Low P/E ratio (10.27) compared to the broader financial services sector
Conservative Debt/Equity ratio (0.27) indicating strong solvency
Risks
Bearish insider activity with consistent selling and zero buying
Negative recent earnings momentum (Q/Q EPS growth of -22.7%)
Potential for insurance reserve insufficiency leading to earnings charges

Compare Another Pair

ALLY vs CNA: Head-to-Head Comparison

This page compares Ally Financial Inc. (ALLY) and CNA Financial Corporation (CNA) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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