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 business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, community ranking, media sentiment, dividends, profitability and analyst recommendations.
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.
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 company insiders. Comparatively, 0.7% of Discover Financial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
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 1.6%. Capital One Financial pays out 20.7% of its earnings in the form of a dividend. Discover Financial Services pays out 17.5% 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 raised 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.
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.
Capital One Financial currently has a consensus price target of $206.53, suggesting a potential upside of 13.92%. Discover Financial Services has a consensus price target of $192.40, suggesting a potential upside of 13.03%. Given Capital One Financial's stronger consensus rating and higher possible upside, equities analysts clearly believe Capital One Financial is more favorable than Discover Financial Services.
Capital One Financial received 2 more outperform votes than Discover Financial Services when rated by MarketBeat users. However, 72.25% of users gave Discover Financial Services an outperform vote while only 64.63% of users gave Capital One Financial an outperform vote.
In the previous week, Capital One Financial had 15 more articles in the media than Discover Financial Services. MarketBeat recorded 46 mentions for Capital One Financial and 31 mentions for Discover Financial Services. Discover Financial Services' average media sentiment score of 0.89 beat Capital One Financial's score of 0.82 indicating that Discover Financial Services is being referred to more favorably in the news media.
Capital One Financial has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Discover Financial Services has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.
Summary
Capital One Financial beats Discover Financial Services on 12 of the 22 factors compared between the two stocks.
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New MarketBeat Followers Over Time
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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.
Discover Financial Services Competitors List
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This page (NYSE:DFS) was last updated on 3/25/2025 by MarketBeat.com Staff
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