Capital One Financial Corporation (COF) vs Visa Inc. (V)

Capital One Financial Corporation and Visa Inc. are both Credit Services companies. Visa Inc. is the larger, with a market value of $686.4B against $122.0B — 5.6× the size. Capital One Financial Corporation trades at the lower P/E: 12.4× against 30.1×. Capital One Financial Corporation grew revenue faster over the last twelve months: 37.3% against 14.4%. Visa Inc. has the higher net margin (50.8% vs 13.0%) and the higher return on invested capital (38.0% vs 7.92%). Both pay a dividend; Capital One Financial Corporation yields more (1.83% vs 0.78%). Across the 22 metrics below, Capital One Financial Corporation leads on 13 and Visa Inc. on 9.

Valuation

Metric COF V Credit Services median
P/E 12.39 30.09 9.64
P/S 1.58 14.71 0.87
P/B 1.09 18.88 1.16
Price to free cash flow 4.18 31.14 2.99
EV/EBITDA n/m 23.41 9.58
EV/Sales 1.44 14.91 2.32
Earnings yield 8.07% 3.32% 6.72%
Free cash flow yield 23.91% 3.21% 12.33%

Profitability

Metric COF V Credit Services median
Gross margin 78.81% 100.00% 77.13%
Operating margin 0.00% 60.68% 0.34%
Net margin 12.98% 50.78% 9.25%
Free cash flow margin 37.74% 47.23% 13.03%
Return on equity 9.09% 62.36% 8.49%
Return on assets 1.53% 23.22% 2.29%
Return on invested capital 7.92% 38.04% 4.09%

Growth

Metric COF V Credit Services median
Revenue growth (TTM) 37.26% 14.39% 4.62%
EPS growth (last fiscal year) (65.23%) 4.83% —
Revenue growth, 5-year CAGR 16.96% 12.86% 9.13%
Net income growth, 5-year CAGR (1.69%) 13.04% 0.00%

Health

Metric COF V Credit Services median
Debt to equity 0.39 0.68 0.68
Current ratio 1.02 0.99 1.55
Net debt to EBITDA 0.00 0.13 0.13

Dividend

Metric COF V Credit Services median
Dividend yield 1.83% 0.78% 3.34%
Payout ratio 0.18 0.22 0.00

Size

Metric COF V Credit Services median
Market cap 121.97b 686.42b 872.19m

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