WallStSmart

American Express Company (AXP)vsCredit Acceptance Corporation (CACC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Express Company generates 5294% more annual revenue ($68.81B vs $1.28B). CACC leads profitability with a 35.5% profit margin vs 16.3%. CACC appears more attractively valued with a PEG of 1.15. CACC earns a higher WallStSmart Score of 75/100 (B+).

AXP

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.13

CACC

Strong Buy

75

out of 100

Grade: B+

Growth: 7.3Profit: 9.0Value: 6.3Quality: 5.0
Piotroski: 5/9Altman Z: 0.67

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXP4 strengths · Avg: 9.0/10
Market CapQuality
$212.18B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
33.0%10/10

Every $100 of equity generates 33 in profit

Operating MarginProfitability
21.2%8/10

Strong operational efficiency at 21.2%

Free Cash FlowQuality
$2.65B8/10

Generating 2.7B in free cash flow

CACC5 strengths · Avg: 9.0/10
Profit MarginProfitability
35.5%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
52.7%10/10

Strong operational efficiency at 52.7%

Return on EquityProfitability
29.9%9/10

Every $100 of equity generates 30 in profit

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
43.2%8/10

Earnings expanding 43.2% YoY

Areas to Watch

AXP3 concerns · Avg: 3.0/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Debt/EquityHealth
1.783/10

Elevated debt levels

Altman Z-ScoreHealth
0.132/10

Distress zone — elevated risk

CACC2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

Debt/EquityHealth
4.231/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : AXP

The strongest argument for AXP centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 16.3% and operating margin at 21.2%. Revenue growth of 11.6% demonstrates continued momentum.

Bull Case : CACC

The strongest argument for CACC centers on Profit Margin, Operating Margin, Return on Equity. Profitability is solid with margins at 35.5% and operating margin at 52.7%. Revenue growth of 12.7% demonstrates continued momentum.

Bear Case : AXP

The primary concerns for AXP are PEG Ratio, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.78 is elevated, increasing financial risk.

Bear Case : CACC

The primary concerns for CACC are Altman Z-Score, Debt/Equity. Debt-to-equity of 4.23 is elevated, increasing financial risk.

Key Dynamics to Monitor

CACC carries more volatility with a beta of 1.39 — expect wider price swings.

CACC is growing revenue faster at 12.7% — sustainability is the question.

AXP generates stronger free cash flow (2.7B), providing more financial flexibility.

Monitor CREDIT SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CACC scores higher overall (75/100 vs 68/100), backed by strong 35.5% margins and 12.7% 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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Credit Acceptance Corporation

FINANCIAL SERVICES · CREDIT SERVICES · USA

Credit Acceptance Corporation offers financing programs and related products and services to independent and franchised automobile dealerships in the United States. The company is headquartered in Southfield, Michigan.

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