WallStSmart

American Express Company (AXP)vsFinance of America Companies Inc (FOA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Express Company generates 13364% more annual revenue ($66.97B vs $497.43M). AXP leads profitability with a 16.2% profit margin vs 9.1%. FOA trades at a lower P/E of 4.3x. 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

FOA

Hold

49

out of 100

Grade: D+

Growth: 5.3Profit: 5.5Value: 7.7Quality: 4.5
Piotroski: 3/9Altman Z: 0.20
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
FOAUndervalued (+19.8%)

Margin of Safety

+19.8%

Fair Value

$26.79

Current Price

$16.93

$9.86 discount

UndervaluedFair: $26.79Overvalued

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

FOA3 strengths · Avg: 10.0/10
P/E RatioValuation
4.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
30.8%10/10

Every $100 of equity generates 31 in profit

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

FOA4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$173.33M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-72.1%2/10

Revenue declined 72.1%

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 : FOA

The strongest argument for FOA centers on P/E Ratio, Price/Book, Return on Equity.

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 : FOA

The primary concerns for FOA are EPS Growth, Market Cap, Piotroski F-Score. Debt-to-equity of 106.49 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

FOA carries more volatility with a beta of 1.69 — 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 49/100), backed by strong 16.2% margins and 10.6% revenue growth. FOA offers better value entry with a 19.8% margin of safety. Both earn "Strong Buy" and "Hold" 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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Finance of America Companies Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Finance of America Companies Inc. operates a consumer loan platform in the United States. The company is headquartered in Irving, Texas.

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