American Express Company (AXP)vsCredit Acceptance Corporation (CACC)
AXP
American Express Company
$300.24
-0.58%
FINANCIAL SERVICES · Cap: $208.03B
CACC
Credit Acceptance Corporation
$443.91
+0.94%
FINANCIAL SERVICES · Cap: $4.85B
Smart Verdict
WallStSmart Research — data-driven comparison
American Express Company generates 5309% more annual revenue ($66.97B vs $1.24B). CACC leads profitability with a 34.2% profit margin vs 16.2%. CACC appears more attractively valued with a PEG of 1.15. AXP earns a higher WallStSmart Score of 66/100 (B-).
AXP
Strong Buy66
out of 100
Grade: B-
CACC
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.4%
Fair Value
$512.74
Current Price
$300.24
$212.50 discount
Margin of Safety
-106.2%
Fair Value
$247.72
Current Price
$443.91
$196.19 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 34 in profit
Generating 2.3B in free cash flow
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
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Distress zone — elevated risk
1.6% revenue growth
Earnings declined 10.4%
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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 : 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.
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 : 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.
Key Dynamics to Monitor
AXP profiles as a mature stock while CACC is a value play — different risk/reward profiles.
CACC carries more volatility with a beta of 1.30 — 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 65/100), backed by strong 16.2% margins and 10.6% 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.
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.
Visit Website →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 →Compare with Other CREDIT SERVICES Stocks
Want to dig deeper into these stocks?