COIN Holdings, Inc. (COIN)vs BAC Holdings, Inc. (BAC)

Quick verdict

COIN Holdings, Inc. (COIN) and BAC Holdings, Inc. (BAC) appeal to different investors. On our six-factor framework, COIN scores 3 and BAC scores 3. BAC looks cheaper on the multiples that matter, while COIN grows faster and COIN earns higher returns on capital. The two are evenly matched overall, so your priority — value, growth, income or safety — should decide it.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

COIN Holdings, Inc. operates in Credit Services (Financial Services), while BAC Holdings, Inc. sits in Credit Services (Financial Services). Because both compete in the same sector, this is a direct head-to-head and the financial differences below are especially meaningful. COIN carries a beta of 0.65 versus 1.01 for BAC, meaning BAC has historically been the more volatile of the two.

Valuation

On valuation, BAC is the cheaper stock. COIN trades on a forward P/E of 36.74 and EV/EBITDA of 10.32, against 35.22 and 6.53 for BAC. Price-to-sales is 15.99 vs 17.25, and free-cash-flow yield is 2.0% vs 3.4%. A higher multiple is only justified if the company can sustain faster growth or wider margins, which is exactly what the next sections test.

Growth profile

COIN is the faster grower. COIN has compounded revenue at 28.3% over three years with EPS growth of 41.6%, while BAC has delivered 21.7% revenue and 17.8% EPS growth. Growth like this is the single biggest driver of long-term returns, but it also tends to come with a richer valuation, so it must be weighed against the multiples above.

Profitability and quality

On profitability and quality, COIN is stronger. COIN posts a 33.2% operating margin, 44.1% return on equity and 8.9% return on invested capital. BAC posts 38.4%, 30.9% and 10.0% respectively. Return on invested capital above roughly 15% is a hallmark of a durable competitive advantage, so this metric deserves particular attention.

Balance-sheet risk

COIN has the safer balance sheet. COIN carries net-debt/EBITDA of -0.28x with a current ratio of 2.79, versus 0.15x and 0.91 for BAC. Lower leverage gives a company more room to invest through a downturn and reduces the risk of dilution or distress.

Price performance and shareholder returns

Over the past year COIN returned 6.3% against 80.7% for BAC; on a three-year annualised basis it is 28.4% vs 2.9%. COIN yields 0.0% and BAC yields 0.0%. Past performance never guarantees future results, but the multi-year track record shows how the market has rewarded each business so far.

Which stock fits which investor

For value-oriented investors, BAC is the better fit on today's multiples. Growth investors will likely prefer COIN, which is expanding faster. Income investors should lean toward BAC for its higher shareholder yield, while investors who prize quality-at-a-reasonable-price will favour COIN for its superior returns on capital. This is a comparison of facts, not a recommendation — your time horizon, risk tolerance and existing holdings should drive the final decision.

• Value: BAC
• Growth: COIN
• Income: BAC
• Quality: COIN

Frequently asked questions

Is COIN or BAC the better buy right now?

Neither is universally "better." COIN scores 3 and BAC scores 3 on our six-factor framework. BAC is cheaper, COIN grows faster, and COIN is higher quality — so the right pick depends on your objective.

Which stock is cheaper, COIN or BAC?

BAC is the cheaper stock across forward P/E (36.74 vs 35.22), EV/EBITDA (10.32 vs 6.53) and price-to-sales (15.99 vs 17.25).

Which has grown faster, COIN or BAC?

COIN has the stronger growth profile, with three-year revenue CAGR of 28.3% for COIN versus 21.7% for BAC.

Which stock pays a bigger dividend?

COIN yields 0.0% and BAC yields 0.0%, so BAC is the stronger income choice.

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