American Express vs Marcus Which Is a Better Investment?

American Express and Marcus are two well-known financial companies that offer various services to their clients, including stock trading. American Express is a global leader in the financial services industry, known for its credit card products and reward programs. On the other hand, Marcus is a subsidiary of the investment bank Goldman Sachs, offering personal finance and investment options. Both companies provide opportunities for investors to trade stocks, but they differ in terms of their offerings, fees, and customer service. This comparison will delve into the key differences between American Express and Marcus stocks to help investors make informed decisions.

American Express or Marcus?

When comparing American Express and Marcus, 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 Marcus.

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 0.89%, while Marcus has a dividend yield of 1.27%. 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 19.64%. On the other hand, Marcus reports a 5-year dividend growth of -13.65% year and a payout ratio of -86.08%.

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 21.62 and Marcus's P/E ratio at -69.31. 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 7.20 while Marcus's P/B ratio is 1.53.

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 Marcus's is -0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Express's ROE at 34.09% and Marcus's ROE at -2.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $296.78 for American Express and $21.68 for Marcus. Over the past year, American Express's prices ranged from $167.77 to $307.82, with a yearly change of 83.48%. Marcus's prices fluctuated between $9.56 and $23.16, with a yearly change of 142.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.