DFS vs. COF, SLM, CACC, NNI, ECPG, WRLD, EZPW, PRAA, 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), SLM (SLM), Credit Acceptance (CACC), Nelnet (NNI), Encore Capital Group (ECPG), World Acceptance (WRLD), EZCORP (EZPW), PRA Group (PRAA), Green Dot (GDOT), and Regional Management (RM). These companies are all part of the "consumer finance" industry.
Discover Financial Services vs.
Capital One Financial (NYSE:COF) and Discover Financial Services (NYSE:DFS) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, community ranking, media sentiment, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.
Capital One Financial received 15 more outperform votes than Discover Financial Services when rated by MarketBeat users. However, 72.13% of users gave Discover Financial Services an outperform vote while only 64.43% of users gave Capital One Financial an outperform vote.
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, 0.7% 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 company is poised for long-term growth.
Capital One Financial has higher revenue and earnings than Discover Financial Services. Discover Financial Services is trading at a lower price-to-earnings ratio than Capital One Financial, indicating that it is currently the more affordable of the two stocks.
Discover Financial Services has a net margin of 17.29% compared to Capital One Financial's net margin of 9.46%. Discover Financial Services' return on equity of 26.18% beat Capital One Financial's return on equity.
Capital One Financial has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Discover Financial Services has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
Capital One Financial currently has a consensus price target of $210.64, indicating a potential upside of 6.24%. Discover Financial Services has a consensus price target of $191.64, indicating a potential downside of 3.09%. Given Capital One Financial's stronger consensus rating and higher probable upside, equities research analysts clearly believe Capital One Financial is more favorable than Discover Financial Services.
In the previous week, Capital One Financial had 23 more articles in the media than Discover Financial Services. MarketBeat recorded 25 mentions for Capital One Financial and 2 mentions for Discover Financial Services. Capital One Financial's average media sentiment score of 0.72 beat Discover Financial Services' score of 0.46 indicating that Capital One Financial is being referred to more favorably in the media.
Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.2%. Discover Financial Services pays an annual dividend of $2.80 per share and has a dividend yield of 1.4%. Capital One Financial pays out 20.2% of its earnings in the form of a dividend. Discover Financial Services pays out 14.7% 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 14 consecutive years. Discover Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Capital One Financial beats Discover Financial Services on 12 of the 22 factors compared between the two stocks.
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New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding {thisCompany.Symbol} 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.
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This page (NYSE:DFS) was last updated on 6/8/2025 by MarketBeat.com Staff
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