Mitsubishi HC Capital (OTCMKTS:MIUFY) vs. Bread Financial (NYSE:BFH) Financial Contrast

Mitsubishi HC Capital (OTCMKTS:MIUFY) and Bread Financial (NYSE:BFH) are both financial services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Dividends

Mitsubishi HC Capital pays an annual dividend of $16.71 per share and has a dividend yield of 122.9%. Bread Financial pays an annual dividend of $0.84 per share and has a dividend yield of 2.3%. Mitsubishi HC Capital pays out 18.9% of its earnings in the form of a dividend. Bread Financial pays out 5.9% 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.

Analyst Ratings

This is a breakdown of recent ratings for Mitsubishi HC Capital and Bread Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi HC Capital	0	0	0	0	N/A
Bread Financial	4	7	1	0	1.75

Bread Financial has a consensus price target of $35.00, suggesting a potential downside of 6.02%. Given Bread Financial’s higher possible upside, analysts plainly believe Bread Financial is more favorable than Mitsubishi HC Capital.

Earnings and Valuation

This table compares Mitsubishi HC Capital and Bread Financial’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsubishi HC Capital	N/A	N/A	N/A	$88.45	0.15
Bread Financial	$4.30 billion	0.43	$718.00 million	$14.32	2.60

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

Profitability

This table compares Mitsubishi HC Capital and Bread Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsubishi HC Capital	N/A	N/A	N/A
Bread Financial	13.87%	26.24%	3.34%

Institutional & Insider Ownership

99.5% of Bread Financial shares are held by institutional investors. 0.2% of Bread Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Bread Financial beats Mitsubishi HC Capital on 10 of the 12 factors compared between the two stocks.

About Mitsubishi HC Capital

Mitsubishi HC Capital Inc., together with its subsidiaries, engages in the lease, installment sale, and other financing activities in Japan, North America, Europe, the Middle and Near East, Asia/Oceania, and internationally. The company operates through Customer Solutions, Global Business, Environment, Energy & Infrastructure, Aviation, Logistics, and Real Estate segments. The company engages in the leasing, management, and development of real estate; rental and leasing; medical equipment; management of fund to support management specializing in the medical and long-term care fields; purchases and sell used goods; and auto leasing services. It offers investment in environment and energy-related companies; renewable energy and infrastructure business; operation and asset management of renewable energy business; and wind power generation. In addition, it offers aircraft leasing and aircraft engine leasing; ship finance; marine container and railway freight car leasing; real estate securitization finance; investment in mobility-related companies; and asset management services. Mitsubishi HC Capital Inc. was incorporated in 1971 and is based in Tokyo, Japan.

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.