American Express Company (AXP)vsCharles Schwab Corp (SCHW)
AXP
American Express Company
$300.24
-0.58%
FINANCIAL SERVICES · Cap: $208.03B
SCHW
Charles Schwab Corp
$95.68
-0.72%
FINANCIAL SERVICES · Cap: $169.34B
Smart Verdict
WallStSmart Research — data-driven comparison
American Express Company generates 180% more annual revenue ($66.97B vs $23.92B). SCHW leads profitability with a 37.0% profit margin vs 16.2%. SCHW appears more attractively valued with a PEG of 1.12. SCHW earns a higher WallStSmart Score of 75/100 (B+).
AXP
Strong Buy66
out of 100
Grade: B-
SCHW
Strong Buy75
out of 100
Grade: B+
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
+56.0%
Fair Value
$217.62
Current Price
$95.68
$121.94 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
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 49.7%
Conservative balance sheet, low leverage
Large-cap with strong market position
18.9% revenue growth
Earnings expanding 41.1% YoY
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Distress zone — elevated risk
Negative free cash flow — burning cash
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 : SCHW
The strongest argument for SCHW centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 37.0% and operating margin at 49.7%. Revenue growth of 18.9% 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 : SCHW
The primary concerns for SCHW are Free Cash Flow.
Key Dynamics to Monitor
AXP profiles as a mature stock while SCHW is a growth play — different risk/reward profiles.
AXP carries more volatility with a beta of 1.15 — expect wider price swings.
SCHW is growing revenue faster at 18.9% — sustainability is the question.
AXP generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
SCHW scores higher overall (75/100 vs 66/100), backed by strong 37.0% margins and 18.9% revenue growth. AXP offers better value entry with a 41.4% 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 →Charles Schwab Corp
FINANCIAL SERVICES · CAPITAL MARKETS · USA
The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.
Visit Website →Compare with Other CREDIT SERVICES Stocks
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