Comprehensive Stock Comparison
Compare Finance Of America Companies Inc. (FOA) vs Capital One Financial Corporation (COF) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | FOA | 24.2% revenue growth vs COF's 9.0% |
| Value | FOA | Lower P/E (4.5x vs 9.7x) |
| Quality / Margins | COF | 8.8% net margin vs FOA's 0.8% |
| Stability / Safety | FOA | Beta 0.98 vs COF's 1.53 |
| Dividends | COF | 1.2% yield; 2-year raise streak; FOA pays no meaningful dividend |
| Momentum (1Y) | COF | -1.1% vs FOA's -14.5% |
| Efficiency (ROA) | COF | 0.2% ROA vs FOA's 0.0%, ROIC 4.1% vs 0.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Finance of America Companies operates a diversified consumer lending platform focused on mortgage and specialty loan origination. It generates revenue primarily through loan origination fees and servicing income across its mortgage, reverse mortgage, and commercial lending segments. The company's competitive advantage lies in its integrated platform that combines multiple lending verticals with supporting services like title insurance and loan securitization.
Capital One is a diversified financial services company that operates primarily as a credit card issuer and consumer bank. It generates revenue through three main segments: credit card interest and fees (its largest segment), consumer banking services, and commercial banking operations. The company's key advantage lies in its sophisticated data analytics and technology platform—which enables targeted marketing and risk assessment—coupled with its direct banking model that reduces physical branch costs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
COF leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). FOA leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
COF is the larger business by revenue, generating $53.9B annually — 27.7x FOA's $1.9B. COF is the more profitable business, keeping 8.8% of every revenue dollar as net income compared to FOA's 0.8%.
| Metric | FOAFinance Of Americ… | COFCapital One Finan… |
|---|---|---|
| RevenueTrailing 12 months | $1.9B | $53.9B |
| EBITDAEarnings before interest/tax | $47M | $6.1B |
| Net IncomeAfter-tax profit | $6M | $1.4B |
| Free Cash FlowCash after capex | -$445M | $20.8B |
| Gross MarginGross profit ÷ Revenue | +13.9% | +50.8% |
| Operating MarginEBIT ÷ Revenue | +2.2% | +11.0% |
| Net MarginNet income ÷ Revenue | +0.8% | +8.8% |
| FCF MarginFCF ÷ Revenue | -21.7% | +31.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -114.0% | +9.5% |
Valuation Metrics
At 16.4x trailing earnings, FOA trades at a 3% valuation discount to COF's 16.9x P/E. On an enterprise value basis, COF's 13.9x EV/EBITDA is more attractive than FOA's 350.7x.
| Metric | FOAFinance Of Americ… | COFCapital One Finan… |
|---|---|---|
| Market CapShares × price | $232 | $124.4B |
| Enterprise ValueMkt cap + debt − cash | $28.7B | $126.7B |
| Trailing P/EPrice ÷ TTM EPS | 16.40x | 16.88x |
| Forward P/EPrice ÷ next-FY EPS est. | 4.50x | 9.67x |
| PEG RatioP/E ÷ EPS growth rate | — | 10.08x |
| EV / EBITDAEnterprise value multiple | 350.68x | 13.85x |
| Price / SalesMarket cap ÷ Revenue | 0.00x | 2.31x |
| Price / BookPrice ÷ Book value/share | 1.43x | 1.23x |
| Price / FCFMarket cap ÷ FCF | — | 7.34x |
Profitability & Efficiency
FOA delivers a 1.7% return on equity — every $100 of shareholder capital generates $2 in annual profit, vs $1 for COF. COF carries lower financial leverage with a 0.75x debt-to-equity ratio, signaling a more conservative balance sheet compared to FOA's 90.98x. On the Piotroski fundamental quality scale (0–9), COF scores 5/9 vs FOA's 4/9, reflecting solid financial health.
| Metric | FOAFinance Of Americ… | COFCapital One Finan… |
|---|---|---|
| ROE (TTM)Return on equity | +1.7% | +1.2% |
| ROA (TTM)Return on assets | +0.0% | +0.2% |
| ROICReturn on invested capital | +0.1% | +4.1% |
| ROCEReturn on capital employed | +0.2% | +4.6% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 5 |
| Debt / EquityFinancial leverage | 90.98x | 0.75x |
| Net DebtTotal debt minus cash | $28.7B | $2.3B |
| Cash & Equiv.Liquid assets | $47M | $43.2B |
| Total DebtShort + long-term debt | $28.7B | $45.6B |
| Interest CoverageEBIT ÷ Interest expense | 0.01x | 0.11x |
Total Returns (with DRIP)
A $10,000 investment in COF five years ago would be worth $16,819 today (with dividends reinvested), compared to $1,903 for FOA. Over the past 12 months, COF leads with a -1.1% total return vs FOA's -14.5%. The 3-year compound annual growth rate (CAGR) favors COF at 23.1% vs FOA's 9.8% — a key indicator of consistent wealth creation.
| Metric | FOAFinance Of Americ… | COFCapital One Finan… |
|---|---|---|
| YTD ReturnYear-to-date | -13.8% | -20.8% |
| 1-Year ReturnPast 12 months | -14.5% | -1.1% |
| 3-Year ReturnCumulative with dividends | +32.5% | +86.3% |
| 5-Year ReturnCumulative with dividends | -81.0% | +68.2% |
| 10-Year ReturnCumulative with dividends | -80.0% | +228.4% |
| CAGR (3Y)Annualised 3-year return | +9.8% | +23.1% |
Risk & Volatility
FOA is the less volatile stock with a 0.98 beta — it tends to amplify market swings less than COF's 1.53 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. COF currently trades 75.4% from its 52-week high vs FOA's 65.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | FOAFinance Of Americ… | COFCapital One Finan… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.98x | 1.53x |
| 52-Week HighHighest price in past year | $29.58 | $259.64 |
| 52-Week LowLowest price in past year | $16.58 | $143.22 |
| % of 52W HighCurrent price vs 52-week peak | +65.4% | +75.4% |
| RSI (14)Momentum oscillator 0–100 | 34.0 | 45.1 |
| Avg Volume (50D)Average daily shares traded | 83K | 4.5M |
Analyst Outlook
Wall Street rates FOA as "Hold" and COF as "Buy". Consensus price targets imply 52.5% upside for FOA (target: $30) vs 39.9% for COF (target: $274). COF is the only dividend payer here at 1.24% yield — a key consideration for income-focused portfolios.
| Metric | FOAFinance Of Americ… | COFCapital One Finan… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $29.50 | $273.62 |
| # AnalystsCovering analysts | 5 | 56 |
| Dividend YieldAnnual dividend ÷ price | — | +1.2% |
| Dividend StreakConsecutive years of raises | 0 | 2 |
| Dividend / ShareAnnual DPS | — | $2.43 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.6% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Finance Of America … (FOA) | 100 | 23.21 | -76.8% |
| Capital One Financi… (COF) | 100 | 244.54 | +144.5% |
Capital One Financi… (COF) returned +68% over 5 years vs Finance Of America … (FOA)'s -81%. A $10,000 investment in COF 5 years ago would be worth $16,819 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Finance Of America … (FOA) | $789M | $1.9B | +147.0% |
| Capital One Financi… (COF) | $25.0B | $53.9B | +115.4% |
Capital One Financial Corporation's revenue grew from $25.0B (2015) to $53.9B (2024) — a 8.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Finance Of America … (FOA) | 4.1% | 0.8% | -80.4% |
| Capital One Financi… (COF) | 16.2% | 8.8% | -45.6% |
Capital One Financial Corporation's net margin went from 16% (2015) to 9% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Finance Of America … (FOA) | 4.2 | 23.8 | +466.7% |
| Capital One Financi… (COF) | 28.5 | 15.4 | -46.0% |
Finance Of America Companies Inc. has traded in a 1x–24x P/E range over 3 years; current trailing P/E is ~16x. Capital One Financial Corporation has traded in a 5x–29x P/E range over 8 years; current trailing P/E is ~17x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Finance Of America … (FOA) | 8.92 | 1.18 | -86.8% |
| Capital One Financi… (COF) | 7.07 | 11.59 | +63.9% |
Capital One Financial Corporation's EPS grew from $7.07 (2015) to $11.59 (2024) — a 6% CAGR.
Chart 6Free Cash Flow — 5 Years
Finance Of America Companies Inc. generated $-424M FCF in 2024 (-269% vs 2021). Capital One Financial Corporation generated $17B FCF in 2024 (+46% vs 2021).
FOA vs COF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is FOA or COF a better buy right now?
Finance Of America Companies Inc. (FOA) offers the better valuation at 16.4x trailing P/E (4.5x forward), making it the more compelling value choice. Analysts rate Capital One Financial Corporation (COF) a "Buy" — based on 56 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — FOA or COF?
On trailing P/E, Finance Of America Companies Inc. (FOA) is the cheapest at 16.4x versus Capital One Financial Corporation at 16.9x. On forward P/E, Finance Of America Companies Inc. is actually cheaper at 4.5x.
03Which is the better long-term investment — FOA or COF?
Over the past 5 years, Capital One Financial Corporation (COF) delivered a total return of +68.2%, compared to -81.0% for Finance Of America Companies Inc. (FOA). A $10,000 investment in COF five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: COF returned +228.4% versus FOA's -80.0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — FOA or COF?
By beta (market sensitivity over 5 years), Finance Of America Companies Inc. (FOA) is the lower-risk stock at 0.98β versus Capital One Financial Corporation's 1.53β — meaning COF is approximately 56% more volatile than FOA relative to the S&P 500. On balance sheet safety, Capital One Financial Corporation (COF) carries a lower debt/equity ratio of 75% versus 91% for Finance Of America Companies Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — FOA or COF?
Capital One Financial Corporation (COF) is the more profitable company, earning 8.8% net margin versus 0.8% for Finance Of America Companies Inc. — meaning it keeps 8.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: COF leads at 11.0% versus 2.2% for FOA. At the gross margin level — before operating expenses — COF leads at 50.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is FOA or COF more undervalued right now?
On forward earnings alone, Finance Of America Companies Inc. (FOA) trades at 4.5x forward P/E versus 9.7x for Capital One Financial Corporation — 5.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FOA: 52.5% to $29.50.
07Which pays a better dividend — FOA or COF?
In this comparison, COF (1.2% yield) pays a dividend. FOA does not pay a meaningful dividend and should not be held primarily for income.
08Is FOA or COF better for a retirement portfolio?
For long-horizon retirement investors, Capital One Financial Corporation (COF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1.2% yield, +228.4% 10Y return). Both have compounded well over 10 years (COF: +228.4%, FOA: -80.0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between FOA and COF?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. COF pays a dividend while FOA does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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