WallStSmart

Credit Acceptance Corporation (CACC)vsCapital One Financial Corporation (COF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Capital One Financial Corporation generates 2746% more annual revenue ($36.31B vs $1.28B). CACC leads profitability with a 35.5% profit margin vs 8.9%. COF appears more attractively valued with a PEG of 0.20. CACC earns a higher WallStSmart Score of 75/100 (B+).

CACC

Strong Buy

75

out of 100

Grade: B+

Growth: 7.3Profit: 9.0Value: 6.3Quality: 5.0
Piotroski: 5/9Altman Z: 0.67

COF

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 6.0Value: 5.7Quality: 4.0
Piotroski: 2/9Altman Z: -0.36

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CACC5 strengths · Avg: 9.0/10
Profit MarginProfitability
35.5%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
52.7%10/10

Strong operational efficiency at 52.7%

Return on EquityProfitability
29.9%9/10

Every $100 of equity generates 30 in profit

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
43.2%8/10

Earnings expanding 43.2% YoY

COF6 strengths · Avg: 9.2/10
PEG RatioValuation
0.2010/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
46.3%10/10

Revenue surging 46.3% year-over-year

Market CapQuality
$114.40B9/10

Large-cap with strong market position

Operating MarginProfitability
28.6%8/10

Strong operational efficiency at 28.6%

Free Cash FlowQuality
$5.47B8/10

Generating 5.5B in free cash flow

Areas to Watch

CACC2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

Debt/EquityHealth
4.231/10

Elevated debt levels

COF4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.9%3/10

ROE of 2.9% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
56.6x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-3.2%2/10

Earnings declined 3.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : CACC

The strongest argument for CACC centers on Profit Margin, Operating Margin, Return on Equity. Profitability is solid with margins at 35.5% and operating margin at 52.7%. Revenue growth of 12.7% demonstrates continued momentum.

Bull Case : COF

The strongest argument for COF centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 46.3% demonstrates continued momentum. PEG of 0.20 suggests the stock is reasonably priced for its growth.

Bear Case : CACC

The primary concerns for CACC are Altman Z-Score, Debt/Equity. Debt-to-equity of 4.23 is elevated, increasing financial risk.

Bear Case : COF

The primary concerns for COF are Return on Equity, Piotroski F-Score, P/E Ratio. A P/E of 56.6x leaves little room for execution misses.

Key Dynamics to Monitor

CACC profiles as a mature stock while COF is a hypergrowth play — different risk/reward profiles.

CACC carries more volatility with a beta of 1.39 — expect wider price swings.

COF is growing revenue faster at 46.3% — sustainability is the question.

COF generates stronger free cash flow (5.5B), providing more financial flexibility.

Bottom Line

CACC scores higher overall (75/100 vs 65/100), backed by strong 35.5% margins and 12.7% 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.

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.

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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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