WallStSmart

American Express Company (AXP)vsCapital One Financial Corporation (COF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Express Company generates 43% more annual revenue ($68.81B vs $48.11B). COF leads profitability with a 21.9% profit margin vs 16.3%. COF appears more attractively valued with a PEG of 0.22. COF 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: 4.5
Piotroski: 4/9Altman Z: 0.13

COF

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 7.0Value: 5.7Quality: 4.0
Piotroski: 2/9Altman Z: -0.36

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXP4 strengths · Avg: 9.0/10
Market CapQuality
$237.95B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
33.4%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
$4.47B8/10

Generating 4.5B in free cash flow

COF6 strengths · Avg: 9.7/10
PEG RatioValuation
0.2210/10

Growing faster than its price suggests

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Revenue GrowthGrowth
46.3%10/10

Revenue surging 46.3% year-over-year

Market CapQuality
$123.53B9/10

Large-cap with strong market position

Profit MarginProfitability
21.9%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

AXP3 concerns · Avg: 3.0/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Debt/EquityHealth
1.723/10

Elevated debt levels

Altman Z-ScoreHealth
0.132/10

Distress zone — elevated risk

COF4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
63.3x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-3.2%2/10

Earnings declined 3.2%

Altman Z-ScoreHealth
-0.362/10

Distress zone — elevated risk

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 : COF

The strongest argument for COF centers on PEG Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.9% and operating margin at 33.6%. Revenue growth of 46.3% demonstrates continued momentum.

Bear Case : AXP

The primary concerns for AXP are PEG Ratio, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.72 is elevated, increasing financial risk.

Bear Case : COF

The primary concerns for COF are Piotroski F-Score, P/E Ratio, EPS Growth. A P/E of 63.3x leaves little room for execution misses.

Key Dynamics to Monitor

AXP profiles as a mature stock while COF is a growth play — different risk/reward profiles.

AXP carries more volatility with a beta of 1.04 — expect wider price swings.

COF is growing revenue faster at 46.3% — sustainability is the question.

COF generates stronger free cash flow (7.9B), providing more financial flexibility.

Bottom Line

COF scores higher overall (75/100 vs 68/100), backed by strong 21.9% margins and 46.3% 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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Capital One Financial Corporation

FINANCIAL SERVICES · CREDIT SERVICES · USA

Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States.

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