Comprehensive Stock Comparison
Compare The Western Union Company (WU) 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 | COF | 9.0% revenue growth vs WU's -4.0% |
| Value | WU | Lower P/E (5.3x vs 9.7x) |
| Quality / Margins | WU | 12.4% net margin vs COF's 8.8% |
| Stability / Safety | WU | Beta 0.71 vs COF's 1.53 |
| Dividends | WU | 9.8% yield, 11-year raise streak, vs COF's 1.2% |
| Momentum (1Y) | COF | -1.1% vs WU's -2.4% |
| Efficiency (ROA) | WU | 6.0% ROA vs COF's 0.2%, ROIC 23.3% vs 4.1% |
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
Western Union is a global money transfer and payment services company that enables consumers and businesses to send money across borders. It generates revenue primarily from transaction fees on money transfers — with its Consumer-to-Consumer segment accounting for the vast majority — supplemented by foreign exchange spreads and business payment solutions. Its key competitive advantage is an extensive global agent network spanning over 200 countries and territories, creating a physical presence that digital-only competitors cannot easily replicate.
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
WU leads in 4 of 6 categories (Valuation Metrics, Profitability & Efficiency). COF leads in 2 (Financial Metrics, Total Returns).
Financial Metrics (TTM)
COF is the larger business by revenue, generating $53.9B annually — 13.3x WU's $4.0B. Profitability is closely matched — net margins range from 12.4% (WU) to 8.8% (COF).
| Metric | WUThe Western Union… | COFCapital One Finan… |
|---|---|---|
| RevenueTrailing 12 months | $4.0B | $53.9B |
| EBITDAEarnings before interest/tax | $934M | $6.1B |
| Net IncomeAfter-tax profit | $500M | $1.4B |
| Free Cash FlowCash after capex | $393M | $20.8B |
| Gross MarginGross profit ÷ Revenue | +28.7% | +50.8% |
| Operating MarginEBIT ÷ Revenue | +19.4% | +11.0% |
| Net MarginNet income ÷ Revenue | +12.4% | +8.8% |
| FCF MarginFCF ÷ Revenue | +9.7% | +31.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -68.1% | +9.5% |
Valuation Metrics
At 6.3x trailing earnings, WU trades at a 63% valuation discount to COF's 16.9x P/E. On an enterprise value basis, WU's 1.9x EV/EBITDA is more attractive than COF's 13.9x.
| Metric | WUThe Western Union… | COFCapital One Finan… |
|---|---|---|
| Market CapShares × price | $3.0B | $124.4B |
| Enterprise ValueMkt cap + debt − cash | $1.8B | $126.7B |
| Trailing P/EPrice ÷ TTM EPS | 6.29x | 16.88x |
| Forward P/EPrice ÷ next-FY EPS est. | 5.35x | 9.67x |
| PEG RatioP/E ÷ EPS growth rate | — | 10.08x |
| EV / EBITDAEnterprise value multiple | 1.90x | 13.85x |
| Price / SalesMarket cap ÷ Revenue | 0.75x | 2.31x |
| Price / BookPrice ÷ Book value/share | 3.29x | 1.23x |
| Price / FCFMarket cap ÷ FCF | 7.74x | 7.34x |
Profitability & Efficiency
WU delivers a 52.2% return on equity — every $100 of shareholder capital generates $52 in annual profit, vs $1 for COF.
| Metric | WUThe Western Union… | COFCapital One Finan… |
|---|---|---|
| ROE (TTM)Return on equity | +52.2% | +1.2% |
| ROA (TTM)Return on assets | +6.0% | +0.2% |
| ROICReturn on invested capital | +23.3% | +4.1% |
| ROCEReturn on capital employed | +12.5% | +4.6% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | — | 0.75x |
| Net DebtTotal debt minus cash | -$1.2B | $2.3B |
| Cash & Equiv.Liquid assets | $1.2B | $43.2B |
| Total DebtShort + long-term debt | $0 | $45.6B |
| Interest CoverageEBIT ÷ Interest expense | 5.35x | 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 $6,052 for WU. Over the past 12 months, COF leads with a -1.1% total return vs WU's -2.4%. The 3-year compound annual growth rate (CAGR) favors COF at 23.1% vs WU's -1.3% — a key indicator of consistent wealth creation.
| Metric | WUThe Western Union… | COFCapital One Finan… |
|---|---|---|
| YTD ReturnYear-to-date | +4.3% | -20.8% |
| 1-Year ReturnPast 12 months | -2.4% | -1.1% |
| 3-Year ReturnCumulative with dividends | -3.9% | +86.3% |
| 5-Year ReturnCumulative with dividends | -39.5% | +68.2% |
| 10-Year ReturnCumulative with dividends | -0.7% | +228.4% |
| CAGR (3Y)Annualised 3-year return | -1.3% | +23.1% |
Risk & Volatility
WU is the less volatile stock with a 0.71 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. WU currently trades 80.6% from its 52-week high vs COF's 75.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | WUThe Western Union… | COFCapital One Finan… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.71x | 1.53x |
| 52-Week HighHighest price in past year | $11.95 | $259.64 |
| 52-Week LowLowest price in past year | $7.85 | $143.22 |
| % of 52W HighCurrent price vs 52-week peak | +80.6% | +75.4% |
| RSI (14)Momentum oscillator 0–100 | 49.4 | 45.1 |
| Avg Volume (50D)Average daily shares traded | 6.6M | 4.5M |
Analyst Outlook
Wall Street rates WU as "Hold" and COF as "Buy". Consensus price targets imply 39.9% upside for COF (target: $274) vs -6.5% for WU (target: $9). For income investors, WU offers the higher dividend yield at 9.79% vs COF's 1.24%.
| Metric | WUThe Western Union… | COFCapital One Finan… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $9.00 | $273.62 |
| # AnalystsCovering analysts | 48 | 56 |
| Dividend YieldAnnual dividend ÷ price | +9.8% | +1.2% |
| Dividend StreakConsecutive years of raises | 11 | 2 |
| Dividend / ShareAnnual DPS | $0.94 | $2.43 |
| Buyback YieldShare repurchases ÷ mkt cap | +7.7% | +0.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| The Western Union C… (WU) | 100 | 40.53 | -59.5% |
| Capital One Financi… (COF) | 100 | 244.54 | +144.5% |
Capital One Financi… (COF) returned +68% over 5 years vs The Western Union C… (WU)'s -39%. A $10,000 investment in COF 5 years ago would be worth $16,819 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Western Union C… (WU) | $5.4B | $4.0B | -25.5% |
| Capital One Financi… (COF) | $27.5B | $53.9B | +96.0% |
The Western Union Company's revenue grew from $5.4B (2016) to $4.0B (2025) — a -3.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Western Union C… (WU) | 4.7% | 12.4% | +164.8% |
| Capital One Financi… (COF) | 13.6% | 8.8% | -35.4% |
The Western Union Company's net margin went from 5% (2016) to 12% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| The Western Union C… (WU) | 9.1 | 6.1 | -33.0% |
| Capital One Financi… (COF) | 28.5 | 15.4 | -46.0% |
The Western Union Company has traded in a 4x–12x P/E range over 8 years; current trailing P/E is ~6x. 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 | 2016 | 2025 | Change |
|---|---|---|---|
| The Western Union C… (WU) | 0.51 | 1.53 | +200.0% |
| Capital One Financi… (COF) | 6.89 | 11.59 | +68.2% |
The Western Union Company's EPS grew from $0.51 (2016) to $1.53 (2025) — a 13% CAGR.
Chart 6Free Cash Flow — 5 Years
The Western Union Company generated $393M FCF in 2025 (-53% vs 2021). Capital One Financial Corporation generated $17B FCF in 2024 (+46% vs 2021).
WU vs COF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is WU or COF a better buy right now?
The Western Union Company (WU) offers the better valuation at 6.3x trailing P/E (5.3x 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 — WU or COF?
On trailing P/E, The Western Union Company (WU) is the cheapest at 6.3x versus Capital One Financial Corporation at 16.9x. On forward P/E, The Western Union Company is actually cheaper at 5.3x.
03Which is the better long-term investment — WU or COF?
Over the past 5 years, Capital One Financial Corporation (COF) delivered a total return of +68.2%, compared to -39.5% for The Western Union Company (WU). 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 WU's -0.7%. 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 — WU or COF?
By beta (market sensitivity over 5 years), The Western Union Company (WU) is the lower-risk stock at 0.71β versus Capital One Financial Corporation's 1.53β — meaning COF is approximately 116% more volatile than WU relative to the S&P 500.
05Which has better profit margins — WU or COF?
The Western Union Company (WU) is the more profitable company, earning 12.4% net margin versus 8.8% for Capital One Financial Corporation — meaning it keeps 12.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WU leads at 19.4% versus 11.0% for COF. 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 WU or COF more undervalued right now?
On forward earnings alone, The Western Union Company (WU) trades at 5.3x forward P/E versus 9.7x for Capital One Financial Corporation — 4.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for COF: 39.9% to $273.62.
07Which pays a better dividend — WU or COF?
All stocks in this comparison pay dividends. The Western Union Company (WU) offers the highest yield at 9.8%, versus 1.2% for Capital One Financial Corporation (COF).
08Is WU or COF better for a retirement portfolio?
For long-horizon retirement investors, The Western Union Company (WU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.71), 9.8% yield). Capital One Financial Corporation (COF) carries a higher beta of 1.53 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (WU: -0.7%, COF: +228.4%), 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 WU 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. 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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