Head to Head Comparison: Greystone Housing Impact Investors (NYSE:GHI) versus Bread Financial (NYSE:BFH)

Greystone Housing Impact Investors (NYSE:GHI) and Bread Financial (NYSE:BFH) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Greystone Housing Impact Investors and Bread Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greystone Housing Impact Investors	1	1	1	0	2.00
Bread Financial	3	6	6	0	2.20

Greystone Housing Impact Investors presently has a consensus price target of $9.50, indicating a potential upside of 89.47%. Bread Financial has a consensus price target of $81.33, indicating a potential upside of 9.66%. Given Greystone Housing Impact Investors’ higher possible upside, research analysts plainly believe Greystone Housing Impact Investors is more favorable than Bread Financial.

Institutional and Insider Ownership

9.0% of Greystone Housing Impact Investors shares are held by institutional investors. Comparatively, 99.5% of Bread Financial shares are held by institutional investors. 1.8% of Greystone Housing Impact Investors shares are held by insiders. Comparatively, 0.9% of Bread Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Greystone Housing Impact Investors and Bread Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greystone Housing Impact Investors	$85.39 million	1.38	-$7.61 million	($0.38)	-13.19
Bread Financial	$4.70 billion	0.68	$518.00 million	$10.84	6.84

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

Dividends

Greystone Housing Impact Investors pays an annual dividend of $0.56 per share and has a dividend yield of 11.2%. Bread Financial pays an annual dividend of $0.92 per share and has a dividend yield of 1.2%. Greystone Housing Impact Investors pays out -147.4% of its earnings in the form of a dividend. Bread Financial pays out 8.5% 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. Greystone Housing Impact Investors has increased its dividend for 4 consecutive years. Greystone Housing Impact Investors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Greystone Housing Impact Investors has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Bread Financial has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Profitability

This table compares Greystone Housing Impact Investors and Bread Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greystone Housing Impact Investors	-5.95%	6.13%	1.17%
Bread Financial	11.02%	17.92%	2.61%

Summary

Bread Financial beats Greystone Housing Impact Investors on 11 of the 17 factors compared between the two stocks.

About Greystone Housing Impact Investors

Greystone Housing Impact Investors LP acquires, holds, sells, and deals in a portfolio of mortgage revenue bonds (MRBs) that are issued to provide construction and/or permanent financing for multifamily, student, and senior citizen housing; skilled nursing properties; and commercial properties in the United States. The company operates in four segments: Affordable Multifamily MRB Investments; Seniors and Skilled Nursing MRB Investments; MF Properties; Market-Rate Joint Venture Investments. It also invests in governmental issuer loans. The company was formerly known as America First Multifamily Investors, L.P. and changed its name to Greystone Housing Impact Investors LP in December 2022. Greystone Housing Impact Investors LP was incorporated in 1998 and is based in Omaha, Nebraska.

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.