WallStSmart

American Express Company (AXP)vsSoFi Technologies Inc. (SOFI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Express Company generates 1769% more annual revenue ($66.97B vs $3.58B). AXP leads profitability with a 16.2% profit margin vs 13.4%. SOFI appears more attractively valued with a PEG of 1.36. 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

SOFI

Buy

58

out of 100

Grade: C

Growth: 7.3Profit: 7.0Value: 7.3Quality: 7.0
Piotroski: 4/9Altman Z: 0.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AXPUndervalued (+42.5%)

Margin of Safety

+42.5%

Fair Value

$513.41

Current Price

$294.39

$219.02 discount

UndervaluedFair: $513.41Overvalued
SOFISignificantly Overvalued (-609.1%)

Margin of Safety

-609.1%

Fair Value

$2.65

Current Price

$17.18

$14.53 premium

UndervaluedFair: $2.65Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXP3 strengths · Avg: 9.3/10
Market CapQuality
$205.42B10/10

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

SOFI3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
40.2%10/10

Revenue surging 40.2% year-over-year

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

AXP3 concerns · Avg: 3.0/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Debt/EquityHealth
1.733/10

Elevated debt levels

Altman Z-ScoreHealth
0.132/10

Distress zone — elevated risk

SOFI4 concerns · Avg: 2.3/10
Return on EquityProfitability
5.7%3/10

ROE of 5.7% — below average capital efficiency

P/E RatioValuation
45.2x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-57.0%2/10

Earnings declined 57.0%

Free Cash FlowQuality
$-1.06B2/10

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, 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 : SOFI

The strongest argument for SOFI centers on Revenue Growth, Debt/Equity, Price/Book. Revenue growth of 40.2% demonstrates continued momentum. PEG of 1.36 suggests the stock is reasonably priced for its growth.

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 : SOFI

The primary concerns for SOFI are Return on Equity, P/E Ratio, EPS Growth. A P/E of 45.2x leaves little room for execution misses.

Key Dynamics to Monitor

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

SOFI carries more volatility with a beta of 2.26 — expect wider price swings.

SOFI is growing revenue faster at 40.2% — 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 58/100), backed by strong 16.2% margins and 10.6% revenue growth. Both earn "Strong Buy" and "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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SoFi Technologies Inc.

FINANCIAL SERVICES · CREDIT SERVICES · USA

SoFi Technologies, Inc. provides digital financial services. The company is headquartered in San Francisco, California.

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