WallStSmart

American Express Company (AXP)vsCitigroup Inc. (C)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Citigroup Inc. generates 13% more annual revenue ($75.72B vs $66.97B). C leads profitability with a 18.9% profit margin vs 16.2%. C appears more attractively valued with a PEG of 0.80. AXP earns a higher WallStSmart Score of 66/100 (B-).

AXP

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 10.0Quality: 5.0
Piotroski: 4/9Altman Z: 0.13

C

Strong Buy

65

out of 100

Grade: B-

Growth: 4.7Profit: 6.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AXPUndervalued (+41.4%)

Margin of Safety

+41.4%

Fair Value

$512.74

Current Price

$300.24

$212.50 discount

UndervaluedFair: $512.74Overvalued
CSignificantly Overvalued (-130.5%)

Margin of Safety

-130.5%

Fair Value

$47.53

Current Price

$113.74

$66.21 premium

UndervaluedFair: $47.53Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXP3 strengths · Avg: 9.3/10
Market CapQuality
$208.03B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.0%10/10

Every $100 of equity generates 34 in profit

Free Cash FlowQuality
$2.35B8/10

Generating 2.3B in free cash flow

C6 strengths · Avg: 8.5/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Market CapQuality
$191.59B9/10

Large-cap with strong market position

PEG RatioValuation
0.808/10

Growing faster than its price suggests

P/E RatioValuation
15.7x8/10

Attractively priced relative to earnings

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

Free Cash FlowQuality
$2.03B8/10

Generating 2.0B in free cash flow

Areas to Watch

AXP3 concerns · Avg: 3.0/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Debt/EquityHealth
1.733/10

Elevated debt levels

Altman Z-ScoreHealth
0.132/10

Distress zone — elevated risk

C3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

EPS GrowthGrowth
-10.8%2/10

Earnings declined 10.8%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : C

The strongest argument for C centers on Price/Book, Market Cap, PEG Ratio. Profitability is solid with margins at 18.9% and operating margin at 25.7%. PEG of 0.80 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 : C

The primary concerns for C are Revenue Growth, Return on Equity, EPS Growth.

Key Dynamics to Monitor

AXP profiles as a mature stock while C is a value play — different risk/reward profiles.

AXP carries more volatility with a beta of 1.15 — expect wider price swings.

AXP is growing revenue faster at 10.6% — sustainability is the question.

AXP generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

AXP scores higher overall (66/100 vs 65/100), backed by strong 16.2% margins and 10.6% revenue growth. 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.

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Citigroup Inc.

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Citigroup Inc. is an American multinational investment bank and financial services corporation headquartered in New York City. The company was formed by the merger of banking giant Citicorp and financial conglomerate Travelers Group in 1998; Travelers was subsequently spun off from the company in 2002. Citigroup owns Citicorp, the holding company for Citibank, as well as several international subsidiaries. Citigroup is incorporated in Delaware.

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