WallStSmart

American Express Company (AXP)vsMastercard Inc (MA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Express Company generates 102% more annual revenue ($70.91B vs $35.08B). MA leads profitability with a 46.3% profit margin vs 16.1%. AXP appears more attractively valued with a PEG of 1.30. MA earns a higher WallStSmart Score of 72/100 (B).

AXP

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 5.7Quality: 4.5
Piotroski: 4/9Altman Z: 0.13

MA

Strong Buy

72

out of 100

Grade: B

Growth: 7.3Profit: 10.0Value: 5.0Quality: 5.5
Piotroski: 5/9Altman Z: 4.10

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXP4 strengths · Avg: 9.0/10
Market CapQuality
$219.27B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
33.4%10/10

Every $100 of equity generates 33 in profit

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Free Cash FlowQuality
$4.47B8/10

Generating 4.5B in free cash flow

MA6 strengths · Avg: 9.7/10
Market CapQuality
$498.62B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
289.7%10/10

Every $100 of equity generates 290 in profit

Profit MarginProfitability
46.3%10/10

Keeps 46 of every $100 in revenue as profit

Operating MarginProfitability
61.1%10/10

Strong operational efficiency at 61.1%

Altman Z-ScoreHealth
4.1010/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
22.1%8/10

Earnings expanding 22.1% YoY

Areas to Watch

AXP2 concerns · Avg: 2.5/10
Debt/EquityHealth
1.723/10

Elevated debt levels

Altman Z-ScoreHealth
0.132/10

Distress zone — elevated risk

MA3 concerns · Avg: 2.3/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
88.3x2/10

Trading at 88.3x book value

Debt/EquityHealth
4.391/10

Elevated debt levels

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 16.1% and operating margin at 20.3%. Revenue growth of 12.8% 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 46.3% and operating margin at 61.1%. Revenue growth of 14.1% demonstrates continued momentum.

Bear Case : AXP

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

Bear Case : MA

The primary concerns for MA are P/E Ratio, Price/Book, Debt/Equity. Debt-to-equity of 4.39 is elevated, increasing financial risk.

Key Dynamics to Monitor

AXP carries more volatility with a beta of 1.05 — expect wider price swings.

MA is growing revenue faster at 14.1% — sustainability is the question.

AXP generates stronger free cash flow (4.5B), providing more financial flexibility.

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

Bottom Line

MA scores higher overall (72/100 vs 70/100), backed by strong 46.3% margins and 14.1% 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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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.

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