American Express vs OCI Which Is Superior?

American Express (AXP) and Oracle Corporation (OCI) are two prominent companies in the financial and technology sectors, respectively. AXP is a leading credit card provider, known for its premium services and rewards programs. OCI, on the other hand, is a global technology company specializing in cloud computing solutions. Both companies have seen significant growth and success in recent years, making their stocks attractive options for investors looking to capitalize on their respective industries. In this comparison, we will analyze the financial performance and potential for growth of American Express and OCI stocks.

American Express or OCI?

When comparing American Express and OCI, 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 OCI.

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 OCI has a dividend yield of 135.4%. 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, OCI reports a 5-year dividend growth of 0.00% year and a payout ratio of -88.02%.

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 OCI's P/E ratio at -11.09. 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 7.20 while OCI's P/B ratio is 2.65.

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 OCI's is -0.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Express's ROE at 34.09% and OCI's ROE at -21.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $296.78 for American Express and $11.58 for OCI. Over the past year, American Express's prices ranged from $167.77 to $307.82, with a yearly change of 83.48%. OCI's prices fluctuated between $11.15 and $32.65, with a yearly change of 192.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.