LexinFintech (NYSE: AXP) and American Express (NYSE:AXP) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Dividends

American Express pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. LexinFintech does not pay a dividend. American Express pays out 23.9% of its earnings in the form of a dividend. American Express has increased its dividend for 6 consecutive years.

Institutional & Insider Ownership

6.9% of LexinFintech shares are held by institutional investors. Comparatively, 82.9% of American Express shares are held by institutional investors. 0.2% of American Express shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares LexinFintech and American Express’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LexinFintech N/A N/A N/A
American Express 9.23% 30.08% 3.36%

Analyst Recommendations

This is a summary of recent ratings and price targets for LexinFintech and American Express, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LexinFintech 0 1 2 0 2.67
American Express 1 10 15 0 2.54

LexinFintech presently has a consensus price target of $20.27, indicating a potential upside of 103.69%. American Express has a consensus price target of $109.24, indicating a potential upside of 0.04%. Given LexinFintech’s stronger consensus rating and higher possible upside, equities analysts plainly believe LexinFintech is more favorable than American Express.

Earnings and Valuation

This table compares LexinFintech and American Express’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LexinFintech $857.97 million 1.90 $36.94 million $0.22 45.23
American Express $33.47 billion 2.81 $2.74 billion $5.87 18.60

American Express has higher revenue and earnings than LexinFintech. American Express is trading at a lower price-to-earnings ratio than LexinFintech, indicating that it is currently the more affordable of the two stocks.

Summary

American Express beats LexinFintech on 12 of the 16 factors compared between the two stocks.

LexinFintech Company Profile

LexinFintech Holdings Ltd., through its subsidiaries, operates as an online consumer finance platform for young adults in the People's Republic of China. The company operates Fenqile, an online consumer finance platform that offers personal installment loans, installment purchase loans, and other loan products, as well as Le Card credit line. It also matches customer loans with diversified funding sources, including individual investors on its Juzi Licai online investment platform, institutional funding partners in its direct lending programs, and investors of its asset-backed securities. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was founded in 2013 and is headquartered in Shenzhen, the People's Republic of China.

American Express Company Profile

American Express Company, together with its subsidiaries, provides charge and credit payment card products and travel-related services to consumers and businesses worldwide. It operates through four segments: U.S. Consumer Services, International Consumer and Network Services, Global Commercial Services, and Global Merchant Services. The company's products and services include charge and credit card products, as well as other payment and financing products; network services; expense management products and services; travel-related services; and stored value/prepaid products. Its products and services also comprise merchant acquisition and processing, servicing and settlement, merchant financing, point-of-sale marketing, and information products and services for merchants; and fraud prevention services, as well as the design and operation of customer loyalty programs. The company sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through online applications, direct mail, in-house teams, third-party vendors, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York.

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