VIA vs American Express Which Performs Better?

When it comes to investing in the payment processing sector, VIA and American Express are two companies that stand out. VIA, the parent company of Visa, is a global leader in digital payments, while American Express is known for its premium credit card services. Both companies have seen steady growth in recent years, but they have different business models and strategies. Understanding the strengths and weaknesses of each company can help investors make informed decisions about which stock to add to their portfolio.

VIA or American Express?

When comparing VIA and American Express, 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 VIA and American Express.

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. VIA has a dividend yield of -%, while American Express has a dividend yield of 0.9%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. VIA reports a 5-year dividend growth of 0.00% year and a payout ratio of 76.19%. On the other hand, American Express reports a 5-year dividend growth of 10.01% year and a payout ratio of 19.64%.

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 VIA P/E ratio at 16.70 and American Express's P/E ratio at 21.51. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. VIA P/B ratio is 5.13 while American Express's P/B ratio is 7.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, VIA has seen a 5-year revenue growth of -0.52%, while American Express's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with VIA's ROE at 32.17% and American Express's ROE at 34.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥126.00 for VIA and $300.32 for American Express. Over the past year, VIA's prices ranged from ¥99.00 to ¥234.00, with a yearly change of 136.36%. American Express's prices fluctuated between $167.57 and $307.82, with a yearly change of 83.70%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.