WallStSmart

American Express Company (AXP)vsSLM Corp (SLM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Express Company generates 3955% more annual revenue ($66.97B vs $1.65B). SLM leads profitability with a 45.1% profit margin vs 16.2%. SLM appears more attractively valued with a PEG of 0.58. SLM earns a higher WallStSmart Score of 90/100 (A+).

AXP

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 10.0Quality: 5.0
Piotroski: 4/9Altman Z: 0.13

SLM

Exceptional Buy

90

out of 100

Grade: A+

Growth: 8.7Profit: 8.5Value: 10.0Quality: 5.5
Piotroski: 7/9Altman Z: 0.63
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AXPUndervalued (+41.4%)

Margin of Safety

+41.4%

Fair Value

$512.74

Current Price

$300.24

$212.50 discount

UndervaluedFair: $512.74Overvalued
SLMUndervalued (+84.0%)

Margin of Safety

+84.0%

Fair Value

$161.93

Current Price

$20.43

$141.50 discount

UndervaluedFair: $161.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXP3 strengths · Avg: 9.3/10
Market CapQuality
$208.03B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.0%10/10

Every $100 of equity generates 34 in profit

Free Cash FlowQuality
$2.35B8/10

Generating 2.3B in free cash flow

SLM6 strengths · Avg: 10.0/10
P/E RatioValuation
5.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
32.3%10/10

Every $100 of equity generates 32 in profit

Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
66.8%10/10

Strong operational efficiency at 66.8%

Revenue GrowthGrowth
67.8%10/10

Revenue surging 67.8% year-over-year

EPS GrowthGrowth
126.2%10/10

Earnings expanding 126.2% YoY

Areas to Watch

AXP3 concerns · Avg: 3.0/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Debt/EquityHealth
1.733/10

Elevated debt levels

Altman Z-ScoreHealth
0.132/10

Distress zone — elevated risk

SLM2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.632/10

Distress zone — elevated risk

Debt/EquityHealth
2.391/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 : SLM

The strongest argument for SLM centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 45.1% and operating margin at 66.8%. Revenue growth of 67.8% demonstrates continued momentum.

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 : SLM

The primary concerns for SLM are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.39 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

SLM carries more volatility with a beta of 1.16 — expect wider price swings.

SLM is growing revenue faster at 67.8% — sustainability is the question.

AXP generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

SLM scores higher overall (90/100 vs 66/100), backed by strong 45.1% margins and 67.8% revenue growth. AXP offers better value entry with a 41.4% margin of safety. Both earn "Exceptional 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.

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SLM Corp

FINANCIAL SERVICES · CREDIT SERVICES · USA

SLM Corporation originates and provides private education loan services to students and their families to finance the cost of their education in the United States. The company is headquartered in Newark, Delaware.

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