Adyen vs American Express Which Is Superior?

Adyen and American Express are two leading companies in the financial services sector that have attracted significant attention from investors. Adyen, a Dutch payment processing company, has experienced rapid growth in recent years, while American Express, a global financial services corporation, has established itself as a key player in the credit card industry. Both companies have shown strong financial performance, but differ in their business models and target markets. Investors may benefit from comparing the performance and growth potential of Adyen and American Express stocks to make informed investment decisions.

Adyen or American Express?

When comparing Adyen and American Express, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Adyen and American Express.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Adyen has a dividend yield of -%, while American Express has a dividend yield of 0.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Adyen reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, American Express reports a 5-year dividend growth of 10.01% year and a payout ratio of 19.64%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Adyen P/E ratio at 56.03 and American Express's P/E ratio at 21.63. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Adyen P/B ratio is 12.94 while American Express's P/B ratio is 7.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Adyen has seen a 5-year revenue growth of 0.07%, while American Express's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Adyen's ROE at 24.55% and American Express's ROE at 34.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €1486.80 for Adyen and $301.25 for American Express. Over the past year, Adyen's prices ranged from €965.60 to €1591.20, with a yearly change of 64.79%. American Express's prices fluctuated between $177.50 and $307.82, with a yearly change of 73.42%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.