Wells Fargo & vs American Express Which Is Stronger?

Wells Fargo & Co. and American Express are two prominent names in the financial services industry, each with its own unique strengths and challenges. Wells Fargo is a diversified financial services company, offering banking, mortgage, and investment services, while American Express is known for its credit card business and travel services. Both companies have seen fluctuations in their stock prices in recent years, making them interesting options for investors looking to diversify their portfolios with well-established financial institutions.

Wells Fargo & or American Express?

When comparing Wells Fargo & 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 Wells Fargo & 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. Wells Fargo & has a dividend yield of 2.62%, while American Express has a dividend yield of 0.92%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Wells Fargo & reports a 5-year dividend growth of -4.54% year and a payout ratio of 34.33%. 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 Wells Fargo & P/E ratio at 13.58 and American Express's P/E ratio at 20.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Wells Fargo & P/B ratio is 1.34 while American Express's P/B ratio is 6.98.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Wells Fargo & has seen a 5-year revenue growth of 0.24%, while American Express's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wells Fargo &'s ROE at 9.96% 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 $71.02 for Wells Fargo & and $290.49 for American Express. Over the past year, Wells Fargo &'s prices ranged from $40.53 to $74.27, with a yearly change of 83.25%. American Express's prices fluctuated between $153.50 and $296.83, with a yearly change of 93.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.