Bread Financial (NYSE:BFH) & TeraWulf (NASDAQ:WULF) Head to Head Review

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

Institutional & Insider Ownership

99.5% of Bread Financial shares are held by institutional investors. Comparatively, 62.5% of TeraWulf shares are held by institutional investors. 0.6% of Bread Financial shares are held by company insiders. Comparatively, 19.9% of TeraWulf shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bread Financial	$4.70 billion	0.68	$518.00 million	$10.84	6.87
TeraWulf	$168.46 million	38.01	-$661.42 million	($1.63)	-9.26

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Bread Financial and TeraWulf, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bread Financial	3	6	6	0	2.20
TeraWulf	1	1	12	0	2.79

Bread Financial currently has a consensus target price of $81.08, suggesting a potential upside of 8.83%. TeraWulf has a consensus target price of $20.62, suggesting a potential upside of 36.53%. Given TeraWulf’s stronger consensus rating and higher probable upside, analysts plainly believe TeraWulf is more favorable than Bread Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bread Financial	11.02%	17.92%	2.61%
TeraWulf	-392.64%	-131.48%	-8.64%

Volatility and Risk

Bread Financial has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, TeraWulf has a beta of 3.66, suggesting that its stock price is 266% more volatile than the S&P 500.

Summary

Bread Financial beats TeraWulf on 8 of the 14 factors compared between the two stocks.

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.

About TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.