Credit Acceptance Corporation (CACC)vsCapital One Financial Corporation (COF)
CACC
Credit Acceptance Corporation
$443.91
+0.94%
FINANCIAL SERVICES · Cap: $4.85B
COF
Capital One Financial Corporation
$184.64
+0.35%
FINANCIAL SERVICES · Cap: $112.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Capital One Financial Corporation generates 2547% more annual revenue ($32.78B vs $1.24B). CACC leads profitability with a 34.2% profit margin vs 7.5%. COF appears more attractively valued with a PEG of 0.19. COF earns a higher WallStSmart Score of 75/100 (B+).
CACC
Strong Buy65
out of 100
Grade: B-
COF
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-106.2%
Fair Value
$247.72
Current Price
$443.91
$196.19 premium
Margin of Safety
-50.8%
Fair Value
$142.20
Current Price
$184.64
$42.44 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.7%
Every $100 of equity generates 26 in profit
Attractively priced relative to earnings
Growing faster than its price suggests
Reasonable price relative to book value
Revenue surging 51.6% year-over-year
Large-cap with strong market position
Strong operational efficiency at 22.9%
Earnings expanding 22.2% YoY
Areas to Watch
1.6% revenue growth
Earnings declined 10.4%
Distress zone — elevated risk
Elevated debt levels
ROE of 2.4% — below average capital efficiency
7.5% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : CACC
The strongest argument for CACC centers on Profit Margin, Operating Margin, Return on Equity. Profitability is solid with margins at 34.2% and operating margin at 46.7%. PEG of 1.15 suggests the stock is reasonably priced for its growth.
Bull Case : COF
The strongest argument for COF centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 51.6% demonstrates continued momentum. PEG of 0.19 suggests the stock is reasonably priced for its growth.
Bear Case : CACC
The primary concerns for CACC are Revenue Growth, EPS Growth, Altman Z-Score. Debt-to-equity of 4.17 is elevated, increasing financial risk.
Bear Case : COF
The primary concerns for COF are Return on Equity, Profit Margin, P/E Ratio. A P/E of 54.0x leaves little room for execution misses.
Key Dynamics to Monitor
CACC profiles as a value stock while COF is a hypergrowth play — different risk/reward profiles.
CACC carries more volatility with a beta of 1.30 — expect wider price swings.
COF is growing revenue faster at 51.6% — sustainability is the question.
COF generates stronger free cash flow (6.7B), providing more financial flexibility.
Bottom Line
COF scores higher overall (75/100 vs 65/100) and 51.6% 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.
Credit Acceptance Corporation
FINANCIAL SERVICES · CREDIT SERVICES · USA
Credit Acceptance Corporation offers financing programs and related products and services to independent and franchised automobile dealerships in the United States. The company is headquartered in Southfield, Michigan.
Visit Website →Capital One Financial Corporation
FINANCIAL SERVICES · CREDIT SERVICES · USA
Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States.
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