Comprehensive Stock Comparison
Compare Visa Inc. (V) vs American Express Company (AXP) 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 | V | 11.3% revenue growth vs AXP's 10.1% |
| Value | AXP | Lower P/E (17.6x vs 24.9x), PEG 1.48 vs 1.57 |
| Quality / Margins | V | 50.1% net margin vs AXP's 13.7% |
| Stability / Safety | V | Beta 0.78 vs AXP's 1.35, lower leverage |
| Dividends | V | 0.7% yield, 15-year raise streak, vs AXP's 0.9% |
| Momentum (1Y) | AXP | +3.7% vs V's -11.0% |
| Efficiency (ROA) | V | 21.5% ROA vs AXP's 3.5%, ROIC 29.2% vs 12.2% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Visa operates a global electronic payments network that connects consumers, merchants, and financial institutions. It generates revenue primarily from service fees on transaction processing (about 40% of revenue) and data processing fees (about 35%), with the remainder from international transaction fees and other services. The company's massive network scale — with billions of cards accepted at tens of millions of merchants worldwide — creates a powerful two-sided platform moat that's extremely difficult to replicate.
American Express is a global payments and financial services company that issues charge and credit cards to consumers and businesses. It generates revenue primarily from discount fees charged to merchants — typically 2-3% of transaction value — and cardmember fees, with additional income from interest on revolving balances and travel services. Its key competitive advantage is its premium brand positioning and closed-loop network — which allows it to control both card issuance and merchant acceptance while collecting rich transaction data.
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
V leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). AXP leads in 2 (Valuation Metrics, Total Returns). 1 tied.
Financial Metrics (TTM)
AXP is the larger business by revenue, generating $74.2B annually — 1.9x V's $40.0B. V is the more profitable business, keeping 50.1% of every revenue dollar as net income compared to AXP's 13.7%.
| Metric | VVisa Inc. | AXPAmerican Express … |
|---|---|---|
| RevenueTrailing 12 months | $40.0B | $74.2B |
| EBITDAEarnings before interest/tax | $25.8B | $15.2B |
| Net IncomeAfter-tax profit | $20.8B | $10.5B |
| Free Cash FlowCash after capex | $22.9B | $18.9B |
| Gross MarginGross profit ÷ Revenue | +80.4% | +81.9% |
| Operating MarginEBIT ÷ Revenue | +60.0% | +17.4% |
| Net MarginNet income ÷ Revenue | +50.1% | +13.7% |
| FCF MarginFCF ÷ Revenue | +53.9% | +16.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +3.5% | +18.6% |
Valuation Metrics
At 22.0x trailing earnings, AXP trades at a 30% valuation discount to V's 31.4x P/E. Adjusting for growth (PEG ratio), AXP offers better value at 1.85x vs V's 1.98x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | VVisa Inc. | AXPAmerican Express … |
|---|---|---|
| Market CapShares × price | $2.9B | $212.8B |
| Enterprise ValueMkt cap + debt − cash | $7.9B | $223.4B |
| Trailing P/EPrice ÷ TTM EPS | 31.39x | 22.03x |
| Forward P/EPrice ÷ next-FY EPS est. | 24.90x | 17.58x |
| PEG RatioP/E ÷ EPS growth rate | 1.98x | 1.85x |
| EV / EBITDAEnterprise value multiple | 0.31x | 15.33x |
| Price / SalesMarket cap ÷ Revenue | 0.07x | 2.87x |
| Price / BookPrice ÷ Book value/share | 18.53x | 7.28x |
| Price / FCFMarket cap ÷ FCF | 0.13x | 17.53x |
Profitability & Efficiency
V delivers a 53.6% return on equity — every $100 of shareholder capital generates $54 in annual profit, vs $33 for AXP. V carries lower financial leverage with a 0.66x debt-to-equity ratio, signaling a more conservative balance sheet compared to AXP's 1.69x. On the Piotroski fundamental quality scale (0–9), AXP scores 7/9 vs V's 4/9, reflecting strong financial health.
| Metric | VVisa Inc. | AXPAmerican Express … |
|---|---|---|
| ROE (TTM)Return on equity | +53.6% | +32.5% |
| ROA (TTM)Return on assets | +21.5% | +3.5% |
| ROICReturn on invested capital | +29.2% | +12.2% |
| ROCEReturn on capital employed | +36.2% | +11.2% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 7 |
| Debt / EquityFinancial leverage | 0.66x | 1.69x |
| Net DebtTotal debt minus cash | $5.0B | $10.5B |
| Cash & Equiv.Liquid assets | $20.2B | $40.6B |
| Total DebtShort + long-term debt | $25.2B | $51.1B |
| Interest CoverageEBIT ÷ Interest expense | 41.49x | 1.64x |
Total Returns (with DRIP)
A $10,000 investment in AXP five years ago would be worth $23,155 today (with dividends reinvested), compared to $15,227 for V. Over the past 12 months, AXP leads with a +3.7% total return vs V's -11.0%. The 3-year compound annual growth rate (CAGR) favors AXP at 22.2% vs V's 14.1% — a key indicator of consistent wealth creation.
| Metric | VVisa Inc. | AXPAmerican Express … |
|---|---|---|
| YTD ReturnYear-to-date | -7.4% | -16.9% |
| 1-Year ReturnPast 12 months | -11.0% | +3.7% |
| 3-Year ReturnCumulative with dividends | +48.6% | +82.4% |
| 5-Year ReturnCumulative with dividends | +52.3% | +131.5% |
| 10-Year ReturnCumulative with dividends | +362.0% | +491.2% |
| CAGR (3Y)Annualised 3-year return | +14.1% | +22.2% |
Risk & Volatility
V is the less volatile stock with a 0.78 beta — it tends to amplify market swings less than AXP's 1.35 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. V currently trades 85.3% from its 52-week high vs AXP's 79.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | VVisa Inc. | AXPAmerican Express … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.78x | 1.35x |
| 52-Week HighHighest price in past year | $375.51 | $387.49 |
| 52-Week LowLowest price in past year | $299.00 | $220.43 |
| % of 52W HighCurrent price vs 52-week peak | +85.3% | +79.7% |
| RSI (14)Momentum oscillator 0–100 | 43.9 | 42.2 |
| Avg Volume (50D)Average daily shares traded | 6.3M | 2.4M |
Analyst Outlook
Wall Street rates V as "Buy" and AXP as "Hold". Consensus price targets imply 21.3% upside for AXP (target: $375) vs 18.0% for V (target: $378). For income investors, AXP offers the higher dividend yield at 0.91% vs V's 0.66%.
| Metric | VVisa Inc. | AXPAmerican Express … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $377.83 | $374.58 |
| # AnalystsCovering analysts | 60 | 56 |
| Dividend YieldAnnual dividend ÷ price | +0.7% | +0.9% |
| Dividend StreakConsecutive years of raises | 15 | 14 |
| Dividend / ShareAnnual DPS | $2.11 | $2.80 |
| Buyback YieldShare repurchases ÷ mkt cap | +100.0% | +2.8% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Visa Inc. (V) | 100 | 183.67 | +83.7% |
| American Express Co… (AXP) | 100 | 320.96 | +221.0% |
American Express Co… (AXP) returned +132% over 5 years vs Visa Inc. (V)'s +52%. A $10,000 investment in AXP 5 years ago would be worth $23,155 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Visa Inc. (V) | $15.1B | $40.0B | +165.2% |
| American Express Co… (AXP) | $38.4B | $74.2B | +93.4% |
Visa Inc.'s revenue grew from $15.1B (2016) to $40.0B (2025) — a 11.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Visa Inc. (V) | 39.7% | 50.1% | +26.2% |
| American Express Co… (AXP) | 14.0% | 13.7% | -2.6% |
Visa Inc.'s net margin went from 40% (2016) to 50% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Visa Inc. (V) | 40.7 | 34.4 | -15.5% |
| American Express Co… (AXP) | 33.4 | 21.2 | -36.5% |
Visa Inc. has traded in a 30x–45x P/E range over 9 years; current trailing P/E is ~31x. American Express Company has traded in a 12x–33x P/E range over 8 years; current trailing P/E is ~22x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Visa Inc. (V) | 2.48 | 10.2 | +311.3% |
| American Express Co… (AXP) | 5.65 | 14.02 | +148.1% |
Visa Inc.'s EPS grew from $2.48 (2016) to $10.20 (2025) — a 17% CAGR.
Chart 6Free Cash Flow — 5 Years
Visa Inc. generated $22B FCF in 2025 (+49% vs 2021). American Express Company generated $12B FCF in 2024 (-7% vs 2021).
V vs AXP: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is V or AXP a better buy right now?
American Express Company (AXP) offers the better valuation at 22.0x trailing P/E (17.6x forward), making it the more compelling value choice. Analysts rate Visa Inc. (V) a "Buy" — based on 60 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 — V or AXP?
On trailing P/E, American Express Company (AXP) is the cheapest at 22.0x versus Visa Inc. at 31.4x. On forward P/E, American Express Company is actually cheaper at 17.6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: American Express Company wins at 1.48x versus Visa Inc.'s 1.57x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — V or AXP?
Over the past 5 years, American Express Company (AXP) delivered a total return of +131.5%, compared to +52.3% for Visa Inc. (V). A $10,000 investment in AXP five years ago would be worth approximately $23K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AXP returned +491.2% versus V's +362.0%. 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 — V or AXP?
By beta (market sensitivity over 5 years), Visa Inc. (V) is the lower-risk stock at 0.78β versus American Express Company's 1.35β — meaning AXP is approximately 73% more volatile than V relative to the S&P 500. On balance sheet safety, Visa Inc. (V) carries a lower debt/equity ratio of 66% versus 169% for American Express Company — giving it more financial flexibility in a downturn.
05Which has better profit margins — V or AXP?
Visa Inc. (V) is the more profitable company, earning 50.1% net margin versus 13.7% for American Express Company — meaning it keeps 50.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: V leads at 60.0% versus 17.4% for AXP. At the gross margin level — before operating expenses — AXP leads at 81.9%, 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 V or AXP more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, American Express Company (AXP) is the more undervalued stock at a PEG of 1.48x versus Visa Inc.'s 1.57x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, American Express Company (AXP) trades at 17.6x forward P/E versus 24.9x for Visa Inc. — 7.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AXP: 21.3% to $374.58.
07Which pays a better dividend — V or AXP?
All stocks in this comparison pay dividends. American Express Company (AXP) offers the highest yield at 0.9%, versus 0.7% for Visa Inc. (V).
08Is V or AXP better for a retirement portfolio?
For long-horizon retirement investors, Visa Inc. (V) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.78), 0.7% yield, +362.0% 10Y return). Both have compounded well over 10 years (V: +362.0%, AXP: +491.2%), 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 V and AXP?
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. 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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