American Express Company (AXP)vsEncore Capital Group Inc (ECPG)
AXP
American Express Company
$300.24
-0.58%
FINANCIAL SERVICES · Cap: $208.03B
ECPG
Encore Capital Group Inc
$70.85
-0.18%
FINANCIAL SERVICES · Cap: $1.52B
Smart Verdict
WallStSmart Research — data-driven comparison
American Express Company generates 3686% more annual revenue ($66.97B vs $1.77B). AXP leads profitability with a 16.2% profit margin vs 14.5%. ECPG appears more attractively valued with a PEG of 0.17. ECPG earns a higher WallStSmart Score of 90/100 (A).
AXP
Strong Buy66
out of 100
Grade: B-
ECPG
Exceptional Buy90
out of 100
Grade: A
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
+88.8%
Fair Value
$510.59
Current Price
$70.85
$439.74 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
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 81.8%
Revenue surging 78.3% year-over-year
Every $100 of equity generates 29 in profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Distress zone — elevated risk
1.5% earnings growth
Smaller company, higher risk/reward
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 : ECPG
The strongest argument for ECPG centers on PEG Ratio, P/E Ratio, Operating Margin. Revenue growth of 78.3% demonstrates continued momentum. PEG of 0.17 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 : ECPG
The primary concerns for ECPG are EPS Growth, Market Cap.
Key Dynamics to Monitor
AXP profiles as a mature stock while ECPG is a growth play — different risk/reward profiles.
ECPG carries more volatility with a beta of 1.31 — expect wider price swings.
ECPG is growing revenue faster at 78.3% — sustainability is the question.
AXP generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
ECPG scores higher overall (90/100 vs 66/100) and 78.3% revenue growth. AXP offers better value entry with a 41.4% margin of safety. Both earn "Exceptional 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 →Encore Capital Group Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Encore Capital Group, Inc., a specialty finance company, offers debt recovery solutions and other related services to consumers in a variety of financial assets worldwide. The company is headquartered in San Diego, California.
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