WallStSmart

American Express Company (AXP)vsPRA Group Inc (PRAA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Express Company generates 5227% more annual revenue ($70.91B vs $1.33B). AXP leads profitability with a 16.1% profit margin vs -19.9%. AXP appears more attractively valued with a PEG of 1.30. AXP earns a higher WallStSmart Score of 70/100 (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

PRAA

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 5.0Value: 4.0Quality: 6.0
Piotroski: 4/9Altman Z: 0.76

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

PRAA5 strengths · Avg: 9.2/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
41.2%10/10

Strong operational efficiency at 41.2%

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
29.4%8/10

Revenue surging 29.4% year-over-year

EPS GrowthGrowth
40.1%8/10

Earnings expanding 40.1% 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

PRAA4 concerns · Avg: 2.3/10
Market CapQuality
$716.07M3/10

Smaller company, higher risk/reward

PEG RatioValuation
5.882/10

Expensive relative to growth rate

Return on EquityProfitability
-25.4%2/10

ROE of -25.4% — below average capital efficiency

Free Cash FlowQuality
$-38.68M2/10

Negative free cash flow — burning cash

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 : PRAA

The strongest argument for PRAA centers on Price/Book, Operating Margin, Debt/Equity. Revenue growth of 29.4% 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 : PRAA

The primary concerns for PRAA are Market Cap, PEG Ratio, Return on Equity.

Key Dynamics to Monitor

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

PRAA carries more volatility with a beta of 1.11 — expect wider price swings.

PRAA is growing revenue faster at 29.4% — sustainability is the question.

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

Bottom Line

AXP scores higher overall (70/100 vs 66/100), backed by strong 16.1% margins and 12.8% 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.

Visit Website →

PRA Group Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

PRA Group, Inc., a service company, is engaged in the purchase, collection and management of delinquent loan portfolios in the Americas, Australia and Europe. The company is headquartered in Norfolk, Virginia.

Want to dig deeper into these stocks?