American Express Company (AXP) vs Mastercard Incorporated (MA)

American Express Company and Mastercard Incorporated are both Credit Services companies. Mastercard Incorporated is the larger, with a market value of $494.4B against $207.3B — 2.4× the size. American Express Company trades at the lower P/E: 18.7× against 31.2×. Mastercard Incorporated grew revenue faster over the last twelve months: 16.0% against 9.38%. Mastercard Incorporated has the higher net margin (46.3% vs 13.5%) and the higher return on invested capital (70.5% vs 20.0%). Both pay a dividend; American Express Company yields more (1.32% vs 0.54%). Across the 22 metrics below, American Express Company leads on 12 and Mastercard Incorporated on 10.

Valuation

Metric AXP MA Credit Services median
P/E 18.72 31.17 9.64
P/S 2.49 14.27 0.87
P/B 6.11 89.31 1.16
Price to free cash flow 13.92 31.34 2.99
EV/EBITDA n/m 21.32 9.58
EV/Sales 2.63 14.63 2.32
Earnings yield 5.34% 3.21% 6.72%
Free cash flow yield 7.19% 3.19% 12.33%

Profitability

Metric AXP MA Credit Services median
Gross margin 90.34% 100.00% 77.13%
Operating margin 0.00% 58.33% 0.34%
Net margin 13.45% 46.34% 9.25%
Free cash flow margin 17.90% 45.53% 13.03%
Return on equity 33.97% 241.20% 8.49%
Return on assets 3.75% 29.80% 2.29%
Return on invested capital 20.04% 70.46% 4.09%

Growth

Metric AXP MA Credit Services median
Revenue growth (TTM) 9.38% 16.01% 4.62%
EPS growth (last fiscal year) 9.78% 18.93% —
Revenue growth, 5-year CAGR 16.08% 16.47% 9.13%
Net income growth, 5-year CAGR 28.65% 18.48% 0.00%

Health

Metric AXP MA Credit Services median
Debt to equity 1.66 4.40 0.68
Current ratio 1.55 1.06 1.55
Net debt to EBITDA 0.00 0.34 0.13

Dividend

Metric AXP MA Credit Services median
Dividend yield 1.32% 0.54% 3.34%
Payout ratio 0.23 0.20 0.00

Size

Metric AXP MA Credit Services median
Market cap 207.31b 494.44b 872.19m

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