WallStSmart

Capital One Financial Corporation (COF)vsWestern Union Co (WU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Capital One Financial Corporation generates 709% more annual revenue ($32.78B vs $4.05B). WU leads profitability with a 12.3% 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+).

COF

Strong Buy

75

out of 100

Grade: B+

Growth: 9.3Profit: 6.5Value: 4.7Quality: 5.0

WU

Buy

61

out of 100

Grade: C+

Growth: 2.0Profit: 7.5Value: 8.7Quality: 3.5
Piotroski: 3/9Altman Z: 1.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

COFSignificantly Overvalued (-50.8%)

Margin of Safety

-50.8%

Fair Value

$142.20

Current Price

$181.46

$39.26 premium

UndervaluedFair: $142.20Overvalued
WUUndervalued (+4.3%)

Margin of Safety

+4.3%

Fair Value

$10.34

Current Price

$9.02

$1.32 discount

UndervaluedFair: $10.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COF6 strengths · Avg: 9.2/10
PEG RatioValuation
0.1910/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
51.6%10/10

Revenue surging 51.6% year-over-year

Market CapQuality
$112.86B9/10

Large-cap with strong market position

Operating MarginProfitability
22.9%8/10

Strong operational efficiency at 22.9%

EPS GrowthGrowth
22.2%8/10

Earnings expanding 22.2% YoY

WU3 strengths · Avg: 9.3/10
P/E RatioValuation
5.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
51.9%10/10

Every $100 of equity generates 52 in profit

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Areas to Watch

COF3 concerns · Avg: 2.7/10
Return on EquityProfitability
2.4%3/10

ROE of 2.4% — below average capital efficiency

Profit MarginProfitability
7.5%3/10

7.5% margin — thin

P/E RatioValuation
54.0x2/10

Premium valuation, high expectations priced in

WU4 concerns · Avg: 2.8/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-4.7%2/10

Revenue declined 4.7%

EPS GrowthGrowth
-69.2%2/10

Earnings declined 69.2%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : WU

The strongest argument for WU centers on P/E Ratio, Return on Equity, Price/Book.

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.

Bear Case : WU

The primary concerns for WU are PEG Ratio, Piotroski F-Score, Revenue Growth. Debt-to-equity of 2.80 is elevated, increasing financial risk.

Key Dynamics to Monitor

COF profiles as a hypergrowth stock while WU is a declining play — different risk/reward profiles.

COF carries more volatility with a beta of 1.14 — 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 61/100) and 51.6% 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.

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.

Western Union Co

FINANCIAL SERVICES · CREDIT SERVICES · USA

The Western Union Company is an American worldwide financial services and communications company, headquartered in Denver, Colorado.

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