Comprehensive Stock Comparison
Compare American Express Company (AXP) vs Visa Inc. (V) 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 | AXP | 0.9% yield, 14-year raise streak, vs V's 0.7% |
| 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
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.
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.
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 | AXPAmerican Express … | VVisa Inc. |
|---|---|---|
| RevenueTrailing 12 months | $74.2B | $40.0B |
| EBITDAEarnings before interest/tax | $15.2B | $25.8B |
| Net IncomeAfter-tax profit | $10.5B | $20.8B |
| Free Cash FlowCash after capex | $18.9B | $22.9B |
| Gross MarginGross profit ÷ Revenue | +81.9% | +80.4% |
| Operating MarginEBIT ÷ Revenue | +17.4% | +60.0% |
| Net MarginNet income ÷ Revenue | +13.7% | +50.1% |
| FCF MarginFCF ÷ Revenue | +16.4% | +53.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +18.6% | +3.5% |
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 | AXPAmerican Express … | VVisa Inc. |
|---|---|---|
| Market CapShares × price | $212.8B | $2.9B |
| Enterprise ValueMkt cap + debt − cash | $223.4B | $7.9B |
| Trailing P/EPrice ÷ TTM EPS | 22.03x | 31.39x |
| Forward P/EPrice ÷ next-FY EPS est. | 17.58x | 24.90x |
| PEG RatioP/E ÷ EPS growth rate | 1.85x | 1.98x |
| EV / EBITDAEnterprise value multiple | 15.33x | 0.31x |
| Price / SalesMarket cap ÷ Revenue | 2.87x | 0.07x |
| Price / BookPrice ÷ Book value/share | 7.28x | 18.53x |
| Price / FCFMarket cap ÷ FCF | 17.53x | 0.13x |
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 | AXPAmerican Express … | VVisa Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +32.5% | +53.6% |
| ROA (TTM)Return on assets | +3.5% | +21.5% |
| ROICReturn on invested capital | +12.2% | +29.2% |
| ROCEReturn on capital employed | +11.2% | +36.2% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 4 |
| Debt / EquityFinancial leverage | 1.69x | 0.66x |
| Net DebtTotal debt minus cash | $10.5B | $5.0B |
| Cash & Equiv.Liquid assets | $40.6B | $20.2B |
| Total DebtShort + long-term debt | $51.1B | $25.2B |
| Interest CoverageEBIT ÷ Interest expense | 1.64x | 41.49x |
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 | AXPAmerican Express … | VVisa Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -16.9% | -7.4% |
| 1-Year ReturnPast 12 months | +3.7% | -11.0% |
| 3-Year ReturnCumulative with dividends | +82.4% | +48.6% |
| 5-Year ReturnCumulative with dividends | +131.5% | +52.3% |
| 10-Year ReturnCumulative with dividends | +491.2% | +362.0% |
| CAGR (3Y)Annualised 3-year return | +22.2% | +14.1% |
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 | AXPAmerican Express … | VVisa Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.35x | 0.78x |
| 52-Week HighHighest price in past year | $387.49 | $375.51 |
| 52-Week LowLowest price in past year | $220.43 | $299.00 |
| % of 52W HighCurrent price vs 52-week peak | +79.7% | +85.3% |
| RSI (14)Momentum oscillator 0–100 | 42.2 | 43.9 |
| Avg Volume (50D)Average daily shares traded | 2.4M | 6.3M |
Analyst Outlook
Wall Street rates AXP as "Hold" and V as "Buy". 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 | AXPAmerican Express … | VVisa Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $374.58 | $377.83 |
| # AnalystsCovering analysts | 56 | 60 |
| Dividend YieldAnnual dividend ÷ price | +0.9% | +0.7% |
| Dividend StreakConsecutive years of raises | 14 | 15 |
| Dividend / ShareAnnual DPS | $2.80 | $2.11 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.8% | +100.0% |
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 |
|---|---|---|---|
| American Express Co… (AXP) | 100 | 309.85 | +209.9% |
| Visa Inc. (V) | 100 | 173.58 | +73.6% |
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 |
|---|---|---|---|
| American Express Co… (AXP) | $38.4B | $74.2B | +93.4% |
| Visa Inc. (V) | $15.1B | $40.0B | +165.2% |
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 |
|---|---|---|---|
| American Express Co… (AXP) | 14.0% | 13.7% | -2.6% |
| Visa Inc. (V) | 39.7% | 50.1% | +26.2% |
Visa Inc.'s net margin went from 40% (2016) to 50% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| American Express Co… (AXP) | 33.4 | 21.2 | -36.5% |
| Visa Inc. (V) | 40.7 | 34.4 | -15.5% |
American Express Company has traded in a 12x–33x P/E range over 8 years; current trailing P/E is ~22x. Visa Inc. has traded in a 30x–45x P/E range over 9 years; current trailing P/E is ~31x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| American Express Co… (AXP) | 5.65 | 14.02 | +148.1% |
| Visa Inc. (V) | 2.48 | 10.2 | +311.3% |
Visa Inc.'s EPS grew from $2.48 (2016) to $10.20 (2025) — a 17% CAGR.
Chart 6Free Cash Flow — 5 Years
American Express Company generated $12B FCF in 2024 (-7% vs 2021). Visa Inc. generated $22B FCF in 2025 (+49% vs 2021).
AXP vs V: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is AXP or V 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 — AXP or V?
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 — AXP or V?
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 — AXP or V?
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 — AXP or V?
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 AXP or V 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 — AXP or V?
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 AXP or V 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 AXP and V?
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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