WallStSmart

American Express Company (AXP)vsCME Group Inc (CME)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Express Company generates 929% more annual revenue ($66.97B vs $6.51B). CME leads profitability with a 62.6% profit margin vs 16.2%. AXP appears more attractively valued with a PEG of 1.52. 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

CME

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 7.5Value: 7.3Quality: 5.5
Piotroski: 1/9
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
CMEUndervalued (+43.8%)

Margin of Safety

+43.8%

Fair Value

$522.76

Current Price

$293.93

$228.83 discount

UndervaluedFair: $522.76Overvalued

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

CME6 strengths · Avg: 9.0/10
Profit MarginProfitability
62.6%10/10

Keeps 63 of every $100 in revenue as profit

Operating MarginProfitability
63.8%10/10

Strong operational efficiency at 63.8%

Market CapQuality
$105.67B9/10

Large-cap with strong market position

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
35.0%8/10

Earnings expanding 35.0% YoY

Free Cash FlowQuality
$1.10B8/10

Generating 1.1B 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

CME3 concerns · Avg: 3.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.842/10

Expensive relative to growth rate

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 : CME

The strongest argument for CME centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 62.6% and operating margin at 63.8%.

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 : CME

The primary concerns for CME are P/E Ratio, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

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.

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

Bottom Line

AXP scores higher overall (66/100 vs 63/100), backed by strong 16.2% margins and 10.6% revenue growth. CME offers better value entry with a 43.8% margin of safety. Both earn "Strong Buy" and "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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CME Group Inc

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets company. It is the world's largest financial derivatives exchange, and trades in asset classes that include agricultural products, currencies, energy, interest rates, metals, stock indexes and cryptocurrencies futures.

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