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 $686.4B against $207.3B — 3.3× the size. American Express Company trades at the lower P/E: 18.7× against 30.1×. Visa Inc. grew revenue faster over the last twelve months: 14.4% against 9.38%. Visa Inc. has the higher net margin (50.8% vs 13.5%) and the higher return on invested capital (38.0% vs 20.0%). Both pay a dividend; American Express Company yields more (1.32% vs 0.78%). Across the 22 metrics below, American Express Company leads on 13 and Visa Inc. on 9.

Valuation

Metric AXP V Credit Services median
P/E 18.72 30.09 9.64
P/S 2.49 14.71 0.87
P/B 6.11 18.88 1.16
Price to free cash flow 13.92 31.14 2.99
EV/EBITDA n/m 23.41 9.58
EV/Sales 2.63 14.91 2.32
Earnings yield 5.34% 3.32% 6.72%
Free cash flow yield 7.19% 3.21% 12.33%

Profitability

Metric AXP V Credit Services median
Gross margin 90.34% 100.00% 77.13%
Operating margin 0.00% 60.68% 0.34%
Net margin 13.45% 50.78% 9.25%
Free cash flow margin 17.90% 47.23% 13.03%
Return on equity 33.97% 62.36% 8.49%
Return on assets 3.75% 23.22% 2.29%
Return on invested capital 20.04% 38.04% 4.09%

Growth

Metric AXP V Credit Services median
Revenue growth (TTM) 9.38% 14.39% 4.62%
EPS growth (last fiscal year) 9.78% 4.83% —
Revenue growth, 5-year CAGR 16.08% 12.86% 9.13%
Net income growth, 5-year CAGR 28.65% 13.04% 0.00%

Health

Metric AXP V Credit Services median
Debt to equity 1.66 0.68 0.68
Current ratio 1.55 0.99 1.55
Net debt to EBITDA 0.00 0.13 0.13

Dividend

Metric AXP V Credit Services median
Dividend yield 1.32% 0.78% 3.34%
Payout ratio 0.23 0.22 0.00

Size

Metric AXP V Credit Services median
Market cap 207.31b 686.42b 872.19m

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