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AXP vs WFC

AXP
American Express Company
NEUTRAL
Price
$332.90
Market Cap
$228.57B
Sector
Financial Services
AI Confidence
85%
WFC
Wells Fargo & Company
NEUTRAL
Price
$86.64
Market Cap
$267.34B
Sector
Financial Services
AI Confidence
80%

Valuation

P/E Ratio
AXP
21.64
WFC
13.84
Forward P/E
AXP
16.55
WFC
10.92
P/B Ratio
AXP
6.82
WFC
1.63
P/S Ratio
AXP
3.41
WFC
3.34
EV/EBITDA
AXP
--
WFC
--

Profitability

Gross Margin
AXP
63.47%
WFC
0.0%
Operating Margin
AXP
17.46%
WFC
29.94%
Profit Margin
AXP
16.18%
WFC
26.66%
ROE
AXP
33.99%
WFC
11.73%
ROA
AXP
3.79%
WFC
1.05%

Growth

Revenue Growth
AXP
10.6%
WFC
5.0%
Earnings Growth
AXP
16.6%
WFC
13.1%

Financial Health

Debt/Equity
AXP
1.91
WFC
--
Current Ratio
AXP
1.41
WFC
--
Quick Ratio
AXP
1.39
WFC
--

Dividends

Dividend Yield
AXP
1.14%
WFC
2.11%
Payout Ratio
AXP
21.33%
WFC
27.16%

AI Verdict

AXP NEUTRAL

American Express exhibits a stable financial profile with a Piotroski F-Score of 4/9 and strong profitability metrics, including a high ROE of 33.99%. While the stock trades at a significant premium to its Graham Number ($129.95), it remains below its growth-based intrinsic value of $453.71. However, the outlook is tempered by a bearish technical trend (0/100) and consistent insider selling totaling $36.4M. The company shows robust YoY earnings growth of 16.6%, but recent Q/Q EPS contraction and macroeconomic sensitivities create a balanced risk-reward profile.

Strengths
Exceptional Return on Equity (ROE) of 33.99%
Strong YoY Revenue (10.60%) and Earnings (16.60%) growth
Highly sustainable dividend payout ratio of 21.33%
Risks
High Debt/Equity ratio of 1.91, typical for credit services but increases leverage risk
Significant bearish insider sentiment with 8 sell transactions and 0 buys
High Price-to-Book ratio (6.82) indicating a steep valuation premium
WFC NEUTRAL

WFC presents a stark contrast between poor deterministic health and strong valuation/growth metrics. The Piotroski F-Score of 2/9 indicates weak financial health, which heavily penalizes the fundamental baseline. However, the stock is trading almost exactly at its Graham Number ($86.56), suggesting it is fairly valued defensively, while its intrinsic value ($166.83) suggests significant long-term upside. Steady earnings growth of 13.1% YoY and a sustainable payout ratio provide a buffer against the bearish insider sentiment and weak health scores.

Strengths
Trading at defensive fair value (Graham Number $86.56)
Strong earnings growth (13.1% YoY)
Very sustainable dividend payout ratio (27.16%)
Risks
Critically low Piotroski F-Score (2/9) indicating poor financial health
Bearish insider activity with recent sales by General Counsel and Officers
Technical trend score of 0/100 suggesting a bearish momentum shift

Compare Another Pair

AXP vs WFC: Head-to-Head Comparison

This page compares American Express Company (AXP) and Wells Fargo & Company (WFC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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