Over the past three months, the Consumer Finance industry has been one of the top growth leaders in the S&P 500 index, up 22.3%.
The largest (by market capitalization) companies in this industry: American Express ($192.0B) – an international financial institution operating in about 130 countries, providing consumers and businesses with payment products using payment cards and Capital One
Financial ($62.5B) – a diversified financial holding company engaged primarily in credit card lending, auto lending and commercial lending.
Based on the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria using the methodology of Stanford University professor Joseph Piotroski.
As you can see, in terms of fundamental data, both companies are currently showing quite strong results. American Express is superior to Capital One Financial in terms of stability and profitability.
Over the past 3 months, American Express shares have risen by +20.7%, and Capital One Financial by +24.7% (the S&P 500 index is up +10.3%). Capital One Financial has not only outperformed its closest competitor, but also demonstrated better results compared to the index.
So, there is no winner in this issue. Jacobs Solutions outperforms in terms of asset turnover, liquidity, and funding, but Capital One Financial’s business outperforms its competitor in terms of leverage, and its shares also show a better yield.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
