Comparison of American Express Company (AXP) and EZCORP Inc. (NASDAQ:EZPW)

American Express Company (NYSE:AXP) and EZCORP Inc. (NASDAQ:EZPW) are two firms in the Credit Services that compete against each other. Below is a comparison of their dividends, analyst recommendations, profitability, institutional ownership, risk, earnings and valuation.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Express Company 36.99B 2.52 6.79B 7.32 14.88
EZCORP Inc. 824.86M 0.72 22.88M 0.43 22.95

Table 1 demonstrates American Express Company and EZCORP Inc.’s top-line revenue, earnings per share (EPS) and valuation. EZCORP Inc. has lower revenue and earnings than American Express Company. The business with a lower price-to-earnings ratio is presently more affordable of the two stocks. American Express Company’s presently lower price-to-earnings ratio makes it the more affordable of the two businesses.

Profitability

Table 2 hightlights the return on equity, net margins and return on assets of the two companies.

Net Margins Return on Equity Return on Assets
American Express Company 18.36% 32.2% 3.7%
EZCORP Inc. 2.77% 3% 1.8%

Risk and Volatility

American Express Company is 11.00% more volatile than S&P 500 because the company has a beta of 1.11. EZCORP Inc. has a 1.69 beta and it is 69.00% more volatile than S&P 500.

Dividends

American Express Company pays out $1.48 per share annually while its annual dividend yield is 1.35%. No dividend is paid out for EZCORP Inc.

Analyst Recommendations

The Recommendations and Ratings for American Express Company and EZCORP Inc. are featured in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
American Express Company 0 5 3 2.38
EZCORP Inc. 0 0 1 3.00

American Express Company has an average target price of $117.38, and a 5.83% upside potential. EZCORP Inc. on the other hand boasts of a $14 consensus target price and a 31.58% potential upside. Based on the analysts belief we can conclude, EZCORP Inc. is looking more favorable than American Express Company.

Institutional & Insider Ownership

Institutional investors held 86% of American Express Company shares and 0% of EZCORP Inc. shares. Insiders held roughly 0.1% of American Express Company’s shares. Competitively, EZCORP Inc. has 4% of it’s share held by insiders.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
American Express Company 1.94% 6.13% -3.45% 2.15% 14.57% 14.35%
EZCORP Inc. -4.95% 5.15% 3.48% -11.31% -23.44% 26.78%

For the past year American Express Company’s stock price has smaller growth than EZCORP Inc.

Summary

American Express Company beats EZCORP Inc. on 11 of the 16 factors.

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 has a strategic partnership with PayPal Holdings, Inc. to improve the digital payments experience for the United States American Express Card members paying with PayPal and Venmo. The company was founded in 1850 and is headquartered in New York, New York.

EZCORP, Inc. provides pawn loans in the United States, Mexico, and Canada. The company operates through three segments: U.S. Pawn, Mexico Pawn, and Other International. It offers pawn loans, which are non-recourse loans collateralized by tangible personal property, such as jewelry, consumer electronics, power tools, sporting goods, and musical instruments; and sells merchandise, including collateral forfeited from pawn lending operations and used merchandise purchased from customers. The company also offers payday loan services through its financial services stores. As of September 30, 2016, it operated approximately 786 locations comprising 520 United States pawn stores under the EZPAWN or Value Pawn & Jewelry names; 239 Mexico pawn stores under the Empeño Fácil name; and 27 CASHMAX financial service stores in Canada. The company was founded in 1989 and is headquartered in Austin, Texas.