WallStSmart

American Express Company (AXP)vsYirendai Ltd (YRD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Express Company generates 1071% more annual revenue ($66.97B vs $5.72B). AXP leads profitability with a 16.2% profit margin vs 0.7%. YRD appears more attractively valued with a PEG of 1.24. 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

YRD

Hold

42

out of 100

Grade: D

Growth: 4.0Profit: 5.0Value: 7.3Quality: 8.5
Piotroski: 3/9Altman Z: 3.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AXPUndervalued (+41.4%)

Margin of Safety

+41.4%

Fair Value

$512.74

Current Price

$300.24

$212.50 discount

UndervaluedFair: $512.74Overvalued
YRDSignificantly Overvalued (-675.0%)

Margin of Safety

-675.0%

Fair Value

$0.48

Current Price

$1.81

$1.33 premium

UndervaluedFair: $0.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXP3 strengths · Avg: 9.3/10
Market CapQuality
$208.03B10/10

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

YRD3 strengths · Avg: 10.0/10
Price/BookValuation
0.1x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.4510/10

Safe zone — low bankruptcy risk

Areas to Watch

AXP3 concerns · Avg: 3.0/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Debt/EquityHealth
1.733/10

Elevated debt levels

Altman Z-ScoreHealth
0.132/10

Distress zone — elevated risk

YRD4 concerns · Avg: 3.3/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Market CapQuality
$451.91M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.4%3/10

ROE of 0.4% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

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 : YRD

The strongest argument for YRD centers on Price/Book, Debt/Equity, Altman Z-Score. PEG of 1.24 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 : YRD

The primary concerns for YRD are P/E Ratio, Market Cap, Return on Equity. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

AXP carries more volatility with a beta of 1.15 — expect wider price swings.

AXP is growing revenue faster at 10.6% — 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 42/100), backed by strong 16.2% margins and 10.6% revenue growth. Both earn "Strong Buy" and "Hold" 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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Yirendai Ltd

FINANCIAL SERVICES · CREDIT SERVICES · China

Yiren Digital Ltd., is an online consumer finance marketplace connecting borrowers and investors in the People's Republic of China.

Visit Website →

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