DFS vs. COF, CACC, SLM, NNI, ECPG, PRAA, WRLD, EZPW, GDOT, and RM
Should you be buying Discover Financial Services stock or one of its competitors? The main competitors of Discover Financial Services include Capital One Financial (COF), Credit Acceptance (CACC), SLM (SLM), Nelnet (NNI), Encore Capital Group (ECPG), PRA Group (PRAA), World Acceptance (WRLD), EZCORP (EZPW), Green Dot (GDOT), and Regional Management (RM). These companies are all part of the "consumer finance" industry.
Capital One Financial (NYSE:COF) and Discover Financial Services (NYSE:DFS) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, community ranking, dividends, risk, media sentiment, institutional ownership, earnings, profitability and analyst recommendations.
89.8% of Capital One Financial shares are held by institutional investors. Comparatively, 86.9% of Discover Financial Services shares are held by institutional investors. 1.3% of Capital One Financial shares are held by company insiders. Comparatively, 0.5% of Discover Financial Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Capital One Financial has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Discover Financial Services has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.
Discover Financial Services received 100 more outperform votes than Capital One Financial when rated by MarketBeat users. Likewise, 73.59% of users gave Discover Financial Services an outperform vote while only 65.84% of users gave Capital One Financial an outperform vote.
Capital One Financial has higher revenue and earnings than Discover Financial Services. Capital One Financial is trading at a lower price-to-earnings ratio than Discover Financial Services, indicating that it is currently the more affordable of the two stocks.
Capital One Financial presently has a consensus target price of $138.50, suggesting a potential upside of 1.41%. Discover Financial Services has a consensus target price of $126.29, suggesting a potential upside of 3.67%. Given Capital One Financial's stronger consensus rating and higher probable upside, analysts plainly believe Discover Financial Services is more favorable than Capital One Financial.
Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.8%. Discover Financial Services pays an annual dividend of $2.80 per share and has a dividend yield of 2.3%. Capital One Financial pays out 18.8% of its earnings in the form of a dividend. Discover Financial Services pays out 31.9% 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. Discover Financial Services has raised its dividend for 13 consecutive years. Discover Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Discover Financial Services has a net margin of 10.56% compared to Discover Financial Services' net margin of 10.19%. Capital One Financial's return on equity of 17.07% beat Discover Financial Services' return on equity.
In the previous week, Capital One Financial had 3 more articles in the media than Discover Financial Services. MarketBeat recorded 17 mentions for Capital One Financial and 14 mentions for Discover Financial Services. Capital One Financial's average media sentiment score of 0.97 beat Discover Financial Services' score of 0.40 indicating that Discover Financial Services is being referred to more favorably in the news media.
Summary
Discover Financial Services beats Capital One Financial on 13 of the 21 factors compared between the two stocks.
Get Discover Financial Services News Delivered to You Automatically
Sign up to receive the latest news and ratings for DFS and its competitors with MarketBeat's FREE daily newsletter.
This chart shows the number of new MarketBeat users adding DFS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
Discover Financial Services Competitors List
Related Companies and Tools
