Credit Acceptance Corporation (CACC)vsCapital One Financial Corporation (COF)
CACC
Credit Acceptance Corporation
$544.71
-0.67%
FINANCIAL SERVICES · Cap: $5.73B
COF
Capital One Financial Corporation
$180.67
-1.38%
FINANCIAL SERVICES · Cap: $114.40B
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 Buy75
out of 100
Grade: B+
COF
Buy65
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 52.7%
Every $100 of equity generates 30 in profit
Attractively priced relative to earnings
Earnings expanding 43.2% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Revenue surging 46.3% year-over-year
Large-cap with strong market position
Strong operational efficiency at 28.6%
Generating 5.5B in free cash flow
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
ROE of 2.9% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Earnings declined 3.2%
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 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.
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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