WallStSmart

American Express Company (AXP)vsWells Fargo & Company (WFC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Wells Fargo & Company generates 14% more annual revenue ($83.11B vs $72.85B). WFC leads profitability with a 27.6% profit margin vs 16.8%. WFC appears more attractively valued with a PEG of 1.30. WFC earns a higher WallStSmart Score of 74/100 (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

WFC

Strong Buy

74

out of 100

Grade: B

Growth: 6.0Profit: 7.5Value: 7.0Quality: 5.5
Piotroski: 4/9Altman Z: -0.38

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
$4.44B8/10

Generating 4.4B in free cash flow

WFC6 strengths · Avg: 9.2/10
Market CapQuality
$250.35B10/10

Mega-cap, among the largest globally

P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

Operating MarginProfitability
34.2%10/10

Strong operational efficiency at 34.2%

Profit MarginProfitability
27.6%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$8.87B8/10

Generating 8.9B 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

WFC3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.4%4/10

0.4% revenue growth

Debt/EquityHealth
1.263/10

Elevated debt levels

Altman Z-ScoreHealth
-0.382/10

Distress zone — elevated risk

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 : WFC

The strongest argument for WFC centers on Market Cap, P/E Ratio, Operating Margin. Profitability is solid with margins at 27.6% and operating margin at 34.2%. PEG of 1.30 suggests the stock is reasonably priced for its growth.

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 : WFC

The primary concerns for WFC are Revenue Growth, Debt/Equity, Altman Z-Score.

Key Dynamics to Monitor

AXP profiles as a mature stock while WFC is a value play — different risk/reward profiles.

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

AXP is growing revenue faster at 11.3% — sustainability is the question.

WFC generates stronger free cash flow (8.9B), providing more financial flexibility.

Bottom Line

WFC scores higher overall (74/100 vs 72/100), backed by strong 27.6% margins. 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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Wells Fargo & Company

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.

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