American Express Company (AXP)vsBank of Montreal (BMO)
AXP
American Express Company
$300.24
-0.58%
FINANCIAL SERVICES · Cap: $208.03B
BMO
Bank of Montreal
$136.39
-0.53%
FINANCIAL SERVICES · Cap: $94.86B
Smart Verdict
WallStSmart Research — data-driven comparison
American Express Company generates 100% more annual revenue ($66.97B vs $33.48B). BMO leads profitability with a 27.1% profit margin vs 16.2%. BMO appears more attractively valued with a PEG of 1.46. BMO earns a higher WallStSmart Score of 75/100 (B+).
AXP
Strong Buy66
out of 100
Grade: B-
BMO
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.4%
Fair Value
$512.74
Current Price
$300.24
$212.50 discount
Margin of Safety
+57.3%
Fair Value
$336.32
Current Price
$136.39
$199.93 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 34 in profit
Generating 2.3B in free cash flow
Strong operational efficiency at 39.9%
Large-cap with strong market position
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 7.0B in free cash flow
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Distress zone — elevated risk
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : BMO
The strongest argument for BMO centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.1% and operating margin at 39.9%. PEG of 1.46 suggests the stock is reasonably priced for its growth.
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.
Bear Case : BMO
No major red flags identified for BMO, but monitor valuation.
Key Dynamics to Monitor
BMO carries more volatility with a beta of 1.16 — expect wider price swings.
AXP is growing revenue faster at 10.6% — sustainability is the question.
BMO generates stronger free cash flow (7.0B), providing more financial flexibility.
Monitor CREDIT SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BMO scores higher overall (75/100 vs 66/100), backed by strong 27.1% margins. 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.
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 →Bank of Montreal
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Bank of Montreal offers diversified financial services primarily in North America. The company is headquartered in Montreal, Canada.
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