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, underwriting, and funding services for private label and co-brand credit card programs, as well as through Bread Pay partnerships. The company also manages and services the loans it originates …
Full BFH analysis →
Bread Financial Holdings, Inc. ranks #25 of 48
scored companies in Credit Services by moat score — the top 52%.
The widest moat in the group is Qifu Technology, Inc (QFIN)
at 77/100.
Moat scores for companies ranked near BFH in Credit Services
A deposit franchise is the cheapest and most valuable thing a bank can own.
Lending Advantage
Score 49
· 18% of the moat score
Lending advantage is the ability to originate loans at attractive spreads without buying that volume with looser credit standards.
Capital Strength
Score 59
· 20% of the moat score
Capital is the buffer between loan losses and insolvency, and it is what regulators judge a bank on first.
Cost Discipline
Score 47
· 16% of the moat score
Banking carries high fixed costs in branches, compliance and technology, so what it costs to run the bank relative to what the bank earns is a genuine competitive variable.
Revenue Diversification
Score 44
· 14% of the moat score
A bank earning everything from net interest income is a leveraged bet on the rate cycle.
Risk Management
Score 54
· 10% of the moat score
Risk management is the defense that only reveals itself late.
What is Bread Financial Holdings, Inc.'s moat score?
Bread Financial Holdings, Inc. (BFH) scores 51 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #25 of 48 scored companies in Credit Services, the top 52%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 47 companies in Credit Services. Its strongest defense is Capital Strength (59/100) and its weakest is Revenue Diversification (44/100).
How does Bread Financial Holdings, Inc. compare with other Credit Services companies?
Bread Financial Holdings, Inc. ranks #25 of 48 scored companies in Credit Services by moat score. The widest moat in Credit Services is Qifu Technology, Inc (QFIN) at 77/100. The companies ranked closest are Navient Corporation (NAVI) at 54 just above it and Regional Management Corp. (RM) at 50 just below it.
How is the moat score calculated?
Each company is scored with an industry-specific template — Bank Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 47 companies in Credit Services. The defenses are then weighted to produce the overall score out of 100.
Why is Bread Financial Holdings, Inc. scored with the Bank Specialized template?
A bank does not sell a product at a margin. It funds itself, lends at a spread, and books profits that remain an estimate until the loans are actually repaid. That makes the usual margin-and-return questions misleading, so the Bank template scores what really determines a bank's durability: where its funding comes from, what it lends against, how much capital stands behind it, and whether it has been pricing risk honestly.
Which competitive defenses are measured for Bread Financial Holdings, Inc.?
The Bank Specialized template measures 6 defenses, and BFH scores: Deposit Franchise (51), Lending Advantage (49), Capital Strength (59), Cost Discipline (47), Revenue Diversification (44), Risk Management (54). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.
We value your privacy
We use cookies to enhance your browsing experience, analyze site traffic, and personalize content. By clicking 'Accept All', you consent to our use of cookies.
Read our cookie policy
Cookie Preferences
Manage your cookie preferences. Essential cookies are always enabled.