WallStSmart

American Express Company (AXP)vsPRA Group Inc (PRAA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Express Company generates 5419% more annual revenue ($68.81B vs $1.25B). AXP leads profitability with a 16.3% profit margin vs -22.5%. AXP appears more attractively valued with a PEG of 1.54. AXP earns a higher WallStSmart Score of 68/100 (B-).

AXP

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.13

PRAA

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 5.0Value: 4.0Quality: 6.5
Piotroski: 4/9Altman Z: 0.76

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXP4 strengths · Avg: 9.0/10
Market CapQuality
$212.18B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
33.0%10/10

Every $100 of equity generates 33 in profit

Operating MarginProfitability
21.2%8/10

Strong operational efficiency at 21.2%

Free Cash FlowQuality
$2.65B8/10

Generating 2.7B in free cash flow

PRAA5 strengths · Avg: 9.6/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.8%10/10

Strong operational efficiency at 32.8%

EPS GrowthGrowth
711.0%10/10

Earnings expanding 711.0% YoY

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

Areas to Watch

AXP3 concerns · Avg: 3.0/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Debt/EquityHealth
1.783/10

Elevated debt levels

Altman Z-ScoreHealth
0.132/10

Distress zone — elevated risk

PRAA4 concerns · Avg: 2.3/10
Market CapQuality
$592.71M3/10

Smaller company, higher risk/reward

PEG RatioValuation
5.822/10

Expensive relative to growth rate

Return on EquityProfitability
-28.0%2/10

ROE of -28.0% — below average capital efficiency

Altman Z-ScoreHealth
0.762/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : AXP

The strongest argument for AXP centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 16.3% and operating margin at 21.2%. Revenue growth of 11.6% demonstrates continued momentum.

Bull Case : PRAA

The strongest argument for PRAA centers on Price/Book, Operating Margin, EPS Growth. Revenue growth of 16.7% demonstrates continued momentum.

Bear Case : AXP

The primary concerns for AXP are PEG Ratio, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.78 is elevated, increasing financial risk.

Bear Case : PRAA

The primary concerns for PRAA are Market Cap, PEG Ratio, Return on Equity.

Key Dynamics to Monitor

AXP profiles as a mature stock while PRAA is a growth play — different risk/reward profiles.

PRAA carries more volatility with a beta of 1.15 — expect wider price swings.

PRAA is growing revenue faster at 16.7% — sustainability is the question.

AXP generates stronger free cash flow (2.7B), providing more financial flexibility.

Bottom Line

AXP scores higher overall (68/100 vs 64/100), backed by strong 16.3% margins and 11.6% 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.

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.

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PRA Group Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

PRA Group, Inc., a service company, is engaged in the purchase, collection and management of delinquent loan portfolios in the Americas, Australia and Europe. The company is headquartered in Norfolk, Virginia.

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