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American Express Company (AXP) vs Visa Inc. (V)

American Express Company and Visa Inc. are both Credit Services companies. Visa Inc. is the larger, with a market value of $809.5B against $217.9B — 3.7× the size. American Express Company trades at the lower P/E: 18.3× against 32.7×. Visa Inc. grew revenue faster over the last twelve months: 14.8% against 8.72%. Visa Inc. has the higher net margin (51.2% vs 14.1%) and the higher return on invested capital (40.4% vs 18.9%). Both pay a dividend; American Express Company yields more (1.13% vs 0.63%). Across the 21 metrics below, American Express Company leads on 11 and Visa Inc. on 10.

Valuation

Metric AXP V Credit Services median
P/E 18.32 32.72 8.96
P/S 2.57 16.55 1.00
P/B 6.13 21.33 1.23
Price to free cash flow 15.77 34.44 2.55
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.46% 3.06% 7.17%
Free cash flow yield 6.34% 2.90% 11.75%

Profitability

Metric AXP V Credit Services median
Gross margin 90.75% 100.00% 76.61%
Operating margin 0.00% 61.24% 0.34%
Net margin 14.14% 51.20% 8.35%
Free cash flow margin 16.27% 48.05% 8.73%
Return on equity 35.45% 64.60% 9.05%
Return on assets 3.98% 24.23% 1.94%
Return on invested capital 18.91% 40.41% 4.56%

Growth

Metric AXP V Credit Services median
Revenue growth (TTM) 8.72% 14.76% 4.49%
EPS growth (last fiscal year) 9.78% 14.07% 21.94%
Revenue growth, 5-year CAGR 16.08% 13.75% 9.22%
Net income growth, 5-year CAGR 28.65% 13.81% 0.00%

Health

Metric AXP V Credit Services median
Debt to equity 1.64 0.61 0.69
Current ratio 1.58 0.97 1.26
Net debt to EBITDA 0.00 0.25 0.11

Dividend

Metric AXP V Credit Services median
Dividend yield 1.13% 0.63% 1.64%
Payout ratio 0.21 0.22 0.21

Size

Metric AXP V Credit Services median
Market cap 217.91b 809.54b 759.73m

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