American Express (NYSE:AXP) Vs. COF, DFS, CACC, SLM, NNI, PRAA, GDOT, ECPG, WRLD, and RM
Should you be buying American Express stock or one of its competitors? The main competitors of American Express include Capital One Financial (COF), Discover Financial Services (DFS), Credit Acceptance (CACC), SLM (SLM), Nelnet (NNI), PRA Group (PRAA), Green Dot (GDOT), Encore Capital Group (ECPG), World Acceptance (WRLD), and Regional Management (RM). These companies are all part of the "consumer finance" industry.
American Express vs.
American Express (NYSE:AXP) and Capital One Financial (NYSE:COF) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, community ranking, institutional ownership, profitability, earnings, dividends, risk, valuation and media sentiment.
American Express presently has a consensus target price of $193.35, suggesting a potential upside of 21.80%. Capital One Financial has a consensus target price of $169.23, suggesting a potential upside of 45.31%. Given Capital One Financial's stronger consensus rating and higher probable upside, analysts plainly believe Capital One Financial is more favorable than American Express.
Capital One Financial has a net margin of 34.71% compared to American Express' net margin of 17.49%. American Express' return on equity of 33.35% beat Capital One Financial's return on equity.
85.5% of American Express shares are held by institutional investors. Comparatively, 89.3% of Capital One Financial shares are held by institutional investors. 0.1% of American Express shares are held by company insiders. Comparatively, 1.3% of Capital One Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
American Express pays an annual dividend of $2.08 per share and has a dividend yield of 1.3%. Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 2.1%. American Express pays out 20.8% of its earnings in the form of a dividend. Capital One Financial pays out 9.4% 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. Capital One Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
American Express received 13 more outperform votes than Capital One Financial when rated by MarketBeat users. However, 69.94% of users gave Capital One Financial an outperform vote while only 62.53% of users gave American Express an outperform vote.
Capital One Financial has lower revenue, but higher earnings than American Express. Capital One Financial is trading at a lower price-to-earnings ratio than American Express, indicating that it is currently the more affordable of the two stocks.
In the previous week, Capital One Financial had 1 more articles in the media than American Express. MarketBeat recorded 21 mentions for Capital One Financial and 20 mentions for American Express. American Express' average media sentiment score of 0.20 beat Capital One Financial's score of 0.12 indicating that American Express is being referred to more favorably in the media.
American Express has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.
Summary
Capital One Financial beats American Express on 13 of the 20 factors compared between the two stocks.
New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding AXP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
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.
American Express (NYSE:AXP) vs. Its Competitors
American Express Competitors List
