American Express Company (AXP)vsMastercard Inc (MA)
AXP
American Express Company
$294.39
+0.18%
FINANCIAL SERVICES · Cap: $205.42B
MA
Mastercard Inc
$488.47
+0.55%
FINANCIAL SERVICES · Cap: $453.80B
Smart Verdict
WallStSmart Research — data-driven comparison
American Express Company generates 104% more annual revenue ($66.97B vs $32.79B). MA leads profitability with a 45.7% profit margin vs 16.2%. AXP appears more attractively valued with a PEG of 1.54. MA earns a higher WallStSmart Score of 70/100 (B).
AXP
Strong Buy66
out of 100
Grade: B-
MA
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+42.5%
Fair Value
$513.41
Current Price
$294.39
$219.02 discount
Margin of Safety
+34.7%
Fair Value
$752.45
Current Price
$488.47
$263.98 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
Mega-cap, among the largest globally
Every $100 of equity generates 210 in profit
Keeps 46 of every $100 in revenue as profit
Strong operational efficiency at 57.7%
Safe zone — low bankruptcy risk
17.6% revenue growth
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Distress zone — elevated risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 56.5x book value
Elevated debt levels
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 : MA
The strongest argument for MA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 45.7% and operating margin at 57.7%. Revenue growth of 17.6% demonstrates continued momentum.
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 : MA
The primary concerns for MA are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.45 is elevated, increasing financial risk.
Key Dynamics to Monitor
AXP profiles as a mature stock while MA is a growth play — different risk/reward profiles.
AXP carries more volatility with a beta of 1.15 — expect wider price swings.
MA is growing revenue faster at 17.6% — sustainability is the question.
MA generates stronger free cash flow (4.8B), providing more financial flexibility.
Bottom Line
MA scores higher overall (70/100 vs 66/100), backed by strong 45.7% margins and 17.6% revenue growth. AXP offers better value entry with a 42.5% margin of safety. 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.
Visit Website →Mastercard Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Mastercard Incorporated is an American multinational financial services corporation headquartered in the Mastercard International Global Headquarters in Purchase, New York. The Global Operations Headquarters is located in O'Fallon, Missouri, a municipality of St. Charles County, Missouri. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard brand debit, credit and prepaid cards to make purchases. Mastercard Worldwide has been a publicly traded company since 2006.
Visit Website →Compare with Other CREDIT SERVICES Stocks
Want to dig deeper into these stocks?