COF vs. AXP, DFS, CACC, SLM, NNI, ECPG, PRAA, WRLD, EZPW, and GDOT
Should you be buying Capital One Financial stock or one of its competitors? The main competitors of Capital One Financial include American Express (AXP), Discover Financial Services (DFS), Credit Acceptance (CACC), SLM (SLM), Nelnet (NNI), Encore Capital Group (ECPG), PRA Group (PRAA), World Acceptance (WRLD), EZCORP (EZPW), and Green Dot (GDOT). These companies are all part of the "consumer finance" industry.
American Express (NYSE:AXP) and Capital One Financial (NYSE:COF) are both large-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations, earnings, community ranking and media sentiment.
American Express has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
American Express pays an annual dividend of $2.80 per share and has a dividend yield of 1.2%. Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.7%. American Express pays out 23.1% of its earnings in the form of a dividend. Capital One Financial pays out 18.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American Express has increased its dividend for 3 consecutive years. Capital One Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
In the previous week, American Express had 9 more articles in the media than Capital One Financial. MarketBeat recorded 27 mentions for American Express and 18 mentions for Capital One Financial. Capital One Financial's average media sentiment score of 0.90 beat American Express' score of 0.83 indicating that American Express is being referred to more favorably in the media.
84.3% of American Express shares are owned by institutional investors. Comparatively, 89.8% of Capital One Financial shares are owned by institutional investors. 0.1% of American Express shares are owned by company insiders. Comparatively, 1.3% of Capital One Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
American Express currently has a consensus target price of $220.30, indicating a potential downside of 5.29%. Capital One Financial has a consensus target price of $141.25, indicating a potential upside of 1.41%. Given American Express' higher possible upside, analysts clearly believe Capital One Financial is more favorable than American Express.
Capital One Financial received 5 more outperform votes than American Express when rated by MarketBeat users. Likewise, 65.77% of users gave Capital One Financial an outperform vote while only 60.38% of users gave American Express an outperform vote.
American Express has higher revenue and earnings than Capital One Financial. Capital One Financial is trading at a lower price-to-earnings ratio than American Express, indicating that it is currently the more affordable of the two stocks.
American Express has a net margin of 14.50% compared to American Express' net margin of 10.19%. Capital One Financial's return on equity of 32.46% beat American Express' return on equity.
Summary
American Express beats Capital One Financial on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding COF and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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