American Express Company (AXP)vsPayPal Holdings Inc (PYPL)
AXP
American Express Company
$294.39
+0.18%
FINANCIAL SERVICES · Cap: $205.42B
PYPL
PayPal Holdings Inc
$44.59
-0.90%
FINANCIAL SERVICES · Cap: $42.50B
Smart Verdict
WallStSmart Research — data-driven comparison
American Express Company generates 102% more annual revenue ($66.97B vs $33.17B). AXP leads profitability with a 16.2% profit margin vs 15.8%. PYPL appears more attractively valued with a PEG of 0.71. PYPL earns a higher WallStSmart Score of 78/100 (B+).
AXP
Strong Buy66
out of 100
Grade: B-
PYPL
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+42.5%
Fair Value
$513.41
Current Price
$294.39
$219.02 discount
Margin of Safety
+82.5%
Fair Value
$253.19
Current Price
$44.59
$208.60 discount
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
Attractively priced relative to earnings
Every $100 of equity generates 26 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 39.4% YoY
Generating 2.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Distress zone — elevated risk
3.7% revenue growth
Distress zone — elevated risk
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 : PYPL
The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. Profitability is solid with margins at 15.8% and operating margin at 17.5%. PEG of 0.71 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 : PYPL
The primary concerns for PYPL are Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
AXP profiles as a mature stock while PYPL is a value play — different risk/reward profiles.
PYPL carries more volatility with a beta of 1.46 — 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
PYPL scores higher overall (78/100 vs 66/100), backed by strong 15.8% margins. AXP offers better value entry with a 42.5% margin of safety. 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 →PayPal Holdings Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
PayPal Holdings, Inc. is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee.
Visit Website →Compare with Other CREDIT SERVICES Stocks
Want to dig deeper into these stocks?