American Express Company (AXP) vs Capital One Financial Corporation (COF)

American Express Company and Capital One Financial Corporation are both Credit Services companies. American Express Company is the larger, with a market value of $217.9B against $122.6B — 1.8× the size. Capital One Financial Corporation trades at the lower P/E: 12.1× against 18.3×. Capital One Financial Corporation grew revenue faster over the last twelve months: 25.4% against 8.72%. American Express Company has the higher net margin (14.1% vs 13.3%) and the higher return on invested capital (18.9% vs 7.53%). Both pay a dividend; Capital One Financial Corporation yields more (1.56% vs 1.13%). Across the 19 metrics below, Capital One Financial Corporation leads on 11 and American Express Company on 8.

Valuation

Metric AXP COF Credit Services median
P/E 18.32 12.09 8.96
P/S 2.57 1.57 1.00
P/B 6.13 1.14 1.23
Price to free cash flow 15.77 4.75 2.55
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.46% 8.27% 7.17%
Free cash flow yield 6.34% 21.04% 11.75%

Profitability

Metric AXP COF Credit Services median
Gross margin 90.75% 79.42% 76.61%
Operating margin 0.00% 0.00% 0.34%
Net margin 14.14% 13.29% 8.35%
Free cash flow margin 16.27% 33.09% 8.73%
Return on equity 35.45% 9.44% 9.05%
Return on assets 3.98% 1.58% 1.94%
Return on invested capital 18.91% 7.53% 4.56%

Growth

Metric AXP COF Credit Services median
Revenue growth (TTM) 8.72% 25.42% 4.49%
EPS growth (last fiscal year) 9.78% (65.23%) 21.94%
Revenue growth, 5-year CAGR 16.08% 16.96% 9.22%
Net income growth, 5-year CAGR 28.65% (1.69%) 0.00%

Health

Metric AXP COF Credit Services median
Debt to equity 1.64 0.45 0.69
Current ratio 1.58 1.02 1.26
Net debt to EBITDA 0.00 0.00 0.11

Dividend

Metric AXP COF Credit Services median
Dividend yield 1.13% 1.56% 1.64%
Payout ratio 0.21 0.19 0.21

Size

Metric AXP COF Credit Services median
Market cap 217.91b 122.61b 759.73m

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