American Express vs Citigroup

American Express and Citigroup are two major players in the financial industry, each offering a range of financial products and services to consumers and businesses. Both companies have a strong presence in the credit card market, with American Express known for its premium rewards and customer service, while Citigroup offers a wide range of banking and investment services. Investors looking to add financial stocks to their portfolio may consider the unique strengths and growth potential of each company before making a decision.

American Express or Citigroup?

When comparing American Express and Citigroup, 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 American Express and Citigroup.

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. American Express has a dividend yield of 0.97%, while Citigroup has a dividend yield of 3.43%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. American Express reports a 5-year dividend growth of 10.01% year and a payout ratio of 19.17%. On the other hand, Citigroup reports a 5-year dividend growth of 6.20% year and a payout ratio of 65.78%.

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 American Express P/E ratio at 20.19 and Citigroup's P/E ratio at 15.09. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. American Express P/B ratio is 6.72 while Citigroup's P/B ratio is 0.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, American Express has seen a 5-year revenue growth of 0.74%, while Citigroup's is 0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Express's ROE at 34.61% and Citigroup's ROE at 3.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $276.90 for American Express and $62.53 for Citigroup. Over the past year, American Express's prices ranged from $140.91 to $281.42, with a yearly change of 99.72%. Citigroup's prices fluctuated between $38.17 and $67.81, with a yearly change of 77.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.