American Express vs Marcus & Millichap Which Is More Reliable?

American Express and Marcus & Millichap are two prominent companies in the financial services industry, each offering unique opportunities for investors. American Express is known for its credit card and payment services, while Marcus & Millichap specializes in commercial real estate brokerage. Both companies have shown strong performance in the past, but have faced different challenges in recent years. Investors looking to diversify their portfolio may consider comparing the two stocks to determine which offers the best potential for growth and stability.

American Express or Marcus & Millichap?

When comparing American Express and Marcus & Millichap, 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 & Millichap.

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 & Millichap has a dividend yield of 1.25%. 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 & Millichap reports a 5-year dividend growth of 0.00% year and a payout ratio of -64.70%.

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 21.63 and Marcus & Millichap's P/E ratio at -49.71. 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 & Millichap's P/B ratio is 2.51.

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 & Millichap's is -0.20%. 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 & Millichap's ROE at -4.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $301.25 for American Express and $39.73 for Marcus & Millichap. Over the past year, American Express's prices ranged from $177.50 to $307.82, with a yearly change of 73.42%. Marcus & Millichap's prices fluctuated between $29.93 and $44.24, with a yearly change of 47.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.