Financial Survey: American Express (AXP) versus Green Dot Corporation (GDOT)
American Express (NYSE: AXP) and Green Dot Corporation (NYSE:GDOT) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitabiliy, dividends, earnings and risk.
Valuation and Earnings
This table compares American Express and Green Dot Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|American Express||$29.48 billion||2.58||$4.32 billion||$4.89||17.57|
|Green Dot Corporation||$743.75 million||2.70||$102.86 million||$0.95||42.47|
American Express has higher revenue and earnings than Green Dot Corporation. American Express is trading at a lower price-to-earnings ratio than Green Dot Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for American Express and Green Dot Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Green Dot Corporation||0||3||6||0||2.67|
American Express currently has a consensus target price of $84.33, suggesting a potential downside of 1.87%. Green Dot Corporation has a consensus target price of $39.29, suggesting a potential downside of 2.64%. Given American Express’ higher probable upside, equities research analysts clearly believe American Express is more favorable than Green Dot Corporation.
Volatility & Risk
American Express has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Green Dot Corporation has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.
This table compares American Express and Green Dot Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Green Dot Corporation||6.65%||10.11%||4.07%|
Insider and Institutional Ownership
83.8% of American Express shares are held by institutional investors. Comparatively, 81.2% of Green Dot Corporation shares are held by institutional investors. 0.7% of American Express shares are held by company insiders. Comparatively, 11.0% of Green Dot Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
American Express pays an annual dividend of $1.28 per share and has a dividend yield of 1.5%. Green Dot Corporation does not pay a dividend. American Express pays out 26.2% of its earnings in the form of a dividend. Green Dot Corporation has raised its dividend for 5 consecutive years.
American Express beats Green Dot Corporation on 10 of the 17 factors compared between the two stocks.
American Express Company Profile
American Express Company, together with its subsidiaries, is a global services company. The Company’s principal products and services are charge and credit card products, and travel-related services, which are offered to consumers and businesses around the world. Its segments include the U.S. Consumer Services (USCS), International Consumer and Network Services (ICNS), Global Commercial Services (GCS) and Global Merchant Services (GMS). The USCS includes the U.S. Consumer Card Services business and consumer travel services in the United States. The ICNS includes the International Consumer Card Services business, Global Network Services business and consumer travel services outside the United States. The GCS includes the Global Corporate Payments business, small business services businesses in the United States and internationally, financing products and foreign exchange services operations. The GMS includes the Global Merchant Services business and global loyalty coalition businesses.
Green Dot Corporation Company Profile
Green Dot Corporation (Green Dot) is a pro-consumer financial technology innovator. The Company is a provider of reloadable prepaid debit cards and cash reload processing services in the United States. The Company operates through two segments: Account Services, and Processing and Settlement Services. The Company’s account services segment includes branded deposit account programs, including Green Dot-branded and affinity-branded general purpose reloadable (GPR) card accounts; checking accounts, open-loop gift cards and secured credit cards. The Company’s processing and settlement services include its money processing services, which consists of reload services and 1099 disbursements, and its tax refund processing services. It also has operations in the mobile technology and mobile banking with GoBank mobile checking account. Through its subsidiary, SBBT Holdings, LLC (TPG), it also operates as a processor of tax refund disbursements in the United States.
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