Ally Financial Inc (ALLY)vsAmerican Express Company (AXP)
ALLY
Ally Financial Inc
$39.23
-0.73%
FINANCIAL SERVICES · Cap: $12.22B
AXP
American Express Company
$300.24
-0.58%
FINANCIAL SERVICES · Cap: $208.03B
Smart Verdict
WallStSmart Research — data-driven comparison
American Express Company generates 808% more annual revenue ($66.97B vs $7.37B). AXP leads profitability with a 16.2% profit margin vs 11.6%. ALLY appears more attractively valued with a PEG of 0.42. ALLY earns a higher WallStSmart Score of 80/100 (B+).
ALLY
Strong Buy80
out of 100
Grade: B+
AXP
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+62.4%
Fair Value
$110.92
Current Price
$39.23
$71.69 discount
Margin of Safety
+41.4%
Fair Value
$512.74
Current Price
$300.24
$212.50 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Attractively priced relative to earnings
Strong operational efficiency at 20.4%
Mega-cap, among the largest globally
Every $100 of equity generates 34 in profit
Generating 2.3B in free cash flow
Areas to Watch
2.7% earnings growth
ROE of 5.8% — below average capital efficiency
Elevated debt levels
Negative free cash flow — burning cash
Expensive relative to growth rate
Elevated debt levels
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ALLY
The strongest argument for ALLY centers on PEG Ratio, Price/Book, P/E Ratio. Revenue growth of 12.0% demonstrates continued momentum. PEG of 0.42 suggests the stock is reasonably priced for its growth.
Bull Case : AXP
The strongest argument for AXP centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 17.5%. Revenue growth of 10.6% demonstrates continued momentum.
Bear Case : ALLY
The primary concerns for ALLY are EPS Growth, Return on Equity, Debt/Equity.
Bear Case : AXP
The primary concerns for AXP are PEG Ratio, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.73 is elevated, increasing financial risk.
Key Dynamics to Monitor
ALLY profiles as a value stock while AXP is a mature play — different risk/reward profiles.
ALLY carries more volatility with a beta of 1.16 — expect wider price swings.
ALLY is growing revenue faster at 12.0% — sustainability is the question.
AXP generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
ALLY scores higher overall (80/100 vs 66/100) and 12.0% revenue growth. AXP offers better value entry with a 41.4% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ally Financial Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Ally Financial Inc., a banking holding company, offers a variety of digital financial products and services to consumers, business and corporate clients primarily in the United States and Canada. The company is headquartered in Detroit, Michigan.
Visit Website →American Express Company
FINANCIAL SERVICES · CREDIT SERVICES · USA
The American Express Company is a multinational financial services corporation headquartered at 200 Vesey Street in the Battery Park City neighborhood of Lower Manhattan in New York City.
Visit Website →Compare with Other CREDIT SERVICES Stocks
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