DFS vs. COF, SLM, CACC, NNI, ECPG, PRAA, WRLD, EZPW, 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), World Acceptance (WRLD), EZCORP (EZPW), Green Dot (GDOT), and Regional Management (RM). These companies are all part of the "consumer finance" industry.
Discover Financial Services vs.
Discover Financial Services (NYSE:DFS) 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 community ranking, dividends, analyst recommendations, risk, earnings, profitability, institutional ownership, media sentiment and valuation.
86.9% of Discover Financial Services shares are owned by institutional investors. Comparatively, 89.8% of Capital One Financial shares are owned by institutional investors. 0.7% of Discover Financial Services shares are owned by insiders. Comparatively, 1.3% of Capital One Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
In the previous week, Capital One Financial had 3 more articles in the media than Discover Financial Services. MarketBeat recorded 44 mentions for Capital One Financial and 41 mentions for Discover Financial Services. Discover Financial Services' average media sentiment score of 1.19 beat Capital One Financial's score of 0.87 indicating that Discover Financial Services is being referred to more favorably in the media.
Discover Financial Services has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.
Discover Financial Services received 14 more outperform votes than Capital One Financial when rated by MarketBeat users. Likewise, 72.23% of users gave Discover Financial Services an outperform vote while only 64.79% of users gave Capital One Financial an outperform vote.
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 currently has a consensus price target of $186.46, indicating a potential downside of 3.99%. Capital One Financial has a consensus price target of $198.50, indicating a potential downside of 0.94%. Given Capital One Financial's stronger consensus rating and higher probable upside, analysts clearly believe Capital One Financial is more favorable than Discover Financial Services.
Discover Financial Services has a net margin of 17.29% compared to Capital One Financial's net margin of 9.46%. Discover Financial Services' return on equity of 26.18% beat Capital One Financial's return on equity.
Discover Financial Services pays an annual dividend of $2.80 per share and has a dividend yield of 1.4%. Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.2%. Discover Financial Services pays out 17.5% of its earnings in the form of a dividend. Capital One Financial pays out 20.7% 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.
Summary
Discover Financial Services and Capital One Financial tied by winning 11 of the 22 factors compared between the two stocks.
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New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding {thisCompany.Symbol} and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
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 2/21/2025 by MarketBeat.com Staff
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