DFS vs. COF, SLM, CACC, NNI, ECPG, PRAA, EZPW, WRLD, GDOT, and RM
Should you be buying Discover Financial Services stock or one of its competitors? The main competitors of Discover Financial Services include Capital One Financial (COF), SLM (SLM), Credit Acceptance (CACC), Nelnet (NNI), Encore Capital Group (ECPG), PRA Group (PRAA), EZCORP (EZPW), World Acceptance (WRLD), Green Dot (GDOT), and Regional Management (RM). These companies are all part of the "consumer finance" industry.
Discover Financial Services vs.
Capital One Financial (NYSE:COF) and Discover Financial Services (NYSE:DFS) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, community ranking, risk, valuation, profitability, dividends, analyst recommendations, media sentiment and institutional ownership.
Capital One Financial has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Discover Financial Services has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.
Discover Financial Services has a net margin of 13.78% compared to Capital One Financial's net margin of 8.80%. Discover Financial Services' return on equity of 22.08% beat Capital One Financial's return on equity.
Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.3%. Discover Financial Services pays an annual dividend of $2.80 per share and has a dividend yield of 1.5%. Capital One Financial pays out 22.7% of its earnings in the form of a dividend. Discover Financial Services pays out 22.6% 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. Discover Financial Services has increased its dividend for 14 consecutive years. Discover Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, Capital One Financial had 32 more articles in the media than Discover Financial Services. MarketBeat recorded 60 mentions for Capital One Financial and 28 mentions for Discover Financial Services. Discover Financial Services' average media sentiment score of 0.71 beat Capital One Financial's score of 0.33 indicating that Discover Financial Services is being referred to more favorably in the news media.
Capital One Financial has higher revenue and earnings than Discover Financial Services. Discover Financial Services is trading at a lower price-to-earnings ratio than Capital One Financial, indicating that it is currently the more affordable of the two stocks.
Discover Financial Services received 36 more outperform votes than Capital One Financial when rated by MarketBeat users. Likewise, 72.37% of users gave Discover Financial Services an outperform vote while only 64.59% of users gave Capital One Financial an outperform vote.
89.8% of Capital One Financial shares are held by institutional investors. Comparatively, 86.9% of Discover Financial Services shares are held by institutional investors. 1.3% of Capital One Financial shares are held by insiders. Comparatively, 0.5% of Discover Financial Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Capital One Financial presently has a consensus target price of $188.06, indicating a potential downside of 1.62%. Discover Financial Services has a consensus target price of $171.71, indicating a potential downside of 8.26%. Given Capital One Financial's stronger consensus rating and higher possible upside, equities research analysts clearly believe Capital One Financial is more favorable than Discover Financial Services.
Summary
Discover Financial Services beats Capital One Financial on 11 of the 20 factors compared between the two stocks.
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New MarketBeat Followers Over Time
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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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This page (NYSE:DFS) was last updated on 1/20/2025 by MarketBeat.com Staff