WallStSmart

American Express Company (AXP)vsVisa Inc. Class A (V)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

American Express Company generates 59% more annual revenue ($72.85B vs $45.90B). V leads profitability with a 51.2% profit margin vs 16.8%. AXP appears more attractively valued with a PEG of 1.32. AXP earns a higher WallStSmart Score of 72/100 (B).

AXP

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 8.0Value: 6.3Quality: 5.5
Piotroski: 4/9Altman Z: 0.13

V

Strong Buy

70

out of 100

Grade: B

Growth: 7.3Profit: 10.0Value: 4.3Quality: 5.0
Piotroski: 4/9Altman Z: 1.84

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXP5 strengths · Avg: 8.8/10
Market CapQuality
$213.98B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.2%10/10

Every $100 of equity generates 34 in profit

P/E RatioValuation
18.0x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
30.9%8/10

Earnings expanding 30.9% YoY

Free Cash FlowQuality
$4.04B8/10

Generating 4.0B in free cash flow

V6 strengths · Avg: 9.3/10
Market CapQuality
$773.00B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
64.2%10/10

Every $100 of equity generates 64 in profit

Profit MarginProfitability
51.2%10/10

Keeps 51 of every $100 in revenue as profit

Operating MarginProfitability
63.7%10/10

Strong operational efficiency at 63.7%

EPS GrowthGrowth
21.9%8/10

Earnings expanding 21.9% YoY

Free Cash FlowQuality
$6.14B8/10

Generating 6.1B in free cash flow

Areas to Watch

AXP2 concerns · Avg: 2.5/10
Debt/EquityHealth
1.673/10

Elevated debt levels

Altman Z-ScoreHealth
0.132/10

Distress zone — elevated risk

V4 concerns · Avg: 3.5/10
PEG RatioValuation
1.874/10

Expensive relative to growth rate

P/E RatioValuation
33.6x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Price/BookValuation
21.6x2/10

Trading at 21.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : AXP

The strongest argument for AXP centers on Market Cap, Return on Equity, P/E Ratio. Profitability is solid with margins at 16.8% and operating margin at 18.4%. Revenue growth of 11.3% demonstrates continued momentum.

Bull Case : V

The strongest argument for V centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 51.2% and operating margin at 63.7%. Revenue growth of 13.2% demonstrates continued momentum.

Bear Case : AXP

The primary concerns for AXP are Debt/Equity, Altman Z-Score. Debt-to-equity of 1.67 is elevated, increasing financial risk.

Bear Case : V

The primary concerns for V are PEG Ratio, P/E Ratio, Altman Z-Score.

Key Dynamics to Monitor

AXP carries more volatility with a beta of 1.08 — expect wider price swings.

V is growing revenue faster at 13.2% — sustainability is the question.

V generates stronger free cash flow (6.1B), providing more financial flexibility.

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

Bottom Line

AXP scores higher overall (72/100 vs 70/100), backed by strong 16.8% margins and 11.3% 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 →

Visa Inc. Class A

FINANCIAL SERVICES · CREDIT SERVICES · USA

Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.

Visit Website →

Want to dig deeper into these stocks?