American Express vs Wells Fargo & Which Is Stronger?
American Express and Wells Fargo are two major players in the financial services industry. While both companies offer a range of banking and investment services, they have distinct approaches to managing their stock performance. American Express is known for its focus on premium credit card services and travel-related financial products, while Wells Fargo has a more diversified portfolio that includes insurance, mortgage, and retail banking. Investors looking to compare the two may consider factors such as stock performance, market volatility, and company financial health.
American Express or Wells Fargo &?
When comparing American Express and Wells Fargo &, 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 Wells Fargo &.
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 0.99%, while Wells Fargo & has a dividend yield of 2.09%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. American Express reports a 5-year dividend growth of 11.03% year and a payout ratio of 19.74%. On the other hand, Wells Fargo & reports a 5-year dividend growth of -4.82% year and a payout ratio of 31.60%.
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 19.86 and Wells Fargo &'s P/E ratio at 12.46. 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 6.65 while Wells Fargo &'s P/B ratio is 1.37.
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 0.35%, while Wells Fargo &'s is 0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Express's ROE at 34.26% and Wells Fargo &'s ROE at 10.96%.
Retail Investors:
Retail investors often consider stock affordability and company familiarity. For example, day low prices are $280.63 for American Express and $72.44 for Wells Fargo &. Over the past year, American Express's prices ranged from $214.51 to $326.27, with a yearly change of 52.10%. Wells Fargo &'s prices fluctuated between $50.15 and $81.50, with a yearly change of 62.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.
