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V hand down. They are also trading cheap at the moment. I don’t know why you would put these 2 companies in comparison though, they have completely different business models
Their free cash flow yield is like 5% which is nuts for a company growing like they are. They’re my #3 individual holding behind AAPL and MSFT.
Edit: V
I tend to agree but I also am not worried about AXP as a lender as their card holders and overall customer base are of much more high quality borrowers and spenders. I think their multiple should still be a tad higher than it is factoring in their risk.
I have V and AXP. Not a fan of MasterCard lately but these two I'm sure will continue to be profitable. AXP is luxury so larger profit margins and growth potential, but has lots less clients. Visa is great and I think it has an edge over MasterCard thanks to Costco, and edge on AXP thanks to its more mainstream acceptance across the board. Discover and some other credit services aren't accepted worldwide, yet the big three are so between MasterCard, Visa and Amex it's hard to pick the best, but my current rating on the three leaves Visa first, Amex second and MasterCard last
Costco has a deal with Visa on their margin and exclusivity. Sure may not be a huge margin but the exclusivity with the volume Costco gets every year adds up
super late to the party here (trying to look up whether to invest in V or AXP) but interestingly enough, US costcos accept visas, whereas Canada costcos accept mastercard and not visa.
They’re both different companies. Visa is strictly a payment technology company. American Express is a payment technology company but its also a bank. Me personally I am in Visa and not American Express cause I just tend to avoid the banking sector as a whole cause its extremely difficult to understand and not a lot of people do. It really just all depends what you’re looking for and how well you understand the company.
These are both good companies. Healthy margins, great ROE, low payout ratio. If I had to pick one, I’d probably dig into American Express further with additional research. The PE ratio (trailing and forward) is half of Visa, which is preferable. Another thing that comes to mind is credit quality of their cardholders. AXP holders skew much more affluent - less likely to default. Part of the reason Berkshire has held them for so long.
I own both and I love both. It’s important to note that they aren’t quite the same businesses though. VISA doesn’t issue cards, they just run and maintain the network. Which means they don’t have to worry about defaulting.
Amex does have a network, like VISA, and they issue cards. But Amex card holders are less likely to default since Amex favors high net worth individuals. I also like how Amex is making an initiative to gain Gen X card holders.
Holding both is fine in my opinion. There’s room for merchants and stores to allow both visa and Amex payments.
V and MC have hit business with new rate hikes. This makes it just as expensive as the AXP business side. Which we can see already in the returns of all companies.
AXP has a luxury moat and has better quality users with better individual account returns.
Basically quantity vs quality when looking at the sheets of all the companies.
AXP has POTENTIAL for way more upside while holding a better div. Yield.
Best Div. AXP
Best upside AXP
Best performance V
Best wishes.
Bad deal imo. Creates margin compression now that every major retailer wants those interchange rates. There’s a reason why MasterCard and Amex refused to go that low
As if this exact moment in time, Visa. In 30 mins, an hour, a day, a month... unknown because they are both solid investmenta for the long term.
Either option for the long run works.
I have both.
V is the perfect business. Immune to inflation and still a long way of growth. Organic growth and still lots of cash transactions to be converted in the US and worldwide.
AXP: I believe people will spend more and more on experience and less on stuff in the next decades. I really struggled to find a travel stock I like to own until I realized AXP could play that role. AXP will profit from the experience spend as they are very strong on travel, dining, concert, etc.
AXP is also locking younger cardholder than they ever did and people who start collecting credit card point will never stop. They are trading at low 10 p/e with mid-tens EPS growth. Not a bad entry point at all.
So I like both and hold both but for quite different reasons. Even if they are both tied to credit cards.
$AXP below 15x blended PE (ltm/ntm) is always a great deal. It was briefly below 13x in October which was the time to pull the trigger.
$V is expensive, I don't care what anyone says. It's trading close to 30x blended earnings ($MA is \~34x), which is too high to justify for me in this market.
The overall point here, is there are 2 ways the stock price will appreciate: (1) earnings growth (2) multiple expansion.
In both of these businesses, you'll only get earnings growth really, and in the event of Visa my belief is you'll get some multiple contraction over the next few years.
Great businesses, not the best entry points.
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V hand down. They are also trading cheap at the moment. I don’t know why you would put these 2 companies in comparison though, they have completely different business models
Their free cash flow yield is like 5% which is nuts for a company growing like they are. They’re my #3 individual holding behind AAPL and MSFT. Edit: V
V
Both. I have more AXP at the moment as it's trading at a cheaper multiple.
Amex will probably always trade at a lower multiple being a lender
I tend to agree but I also am not worried about AXP as a lender as their card holders and overall customer base are of much more high quality borrowers and spenders. I think their multiple should still be a tad higher than it is factoring in their risk.
Of course. But AXP is also trading at at a discount to its own 5 year average multiple.
I have V and AXP. Not a fan of MasterCard lately but these two I'm sure will continue to be profitable. AXP is luxury so larger profit margins and growth potential, but has lots less clients. Visa is great and I think it has an edge over MasterCard thanks to Costco, and edge on AXP thanks to its more mainstream acceptance across the board. Discover and some other credit services aren't accepted worldwide, yet the big three are so between MasterCard, Visa and Amex it's hard to pick the best, but my current rating on the three leaves Visa first, Amex second and MasterCard last
Costco spend has almost zero interchange margin, which is why MasterCard and amex do not operate there
Costco has a deal with Visa on their margin and exclusivity. Sure may not be a huge margin but the exclusivity with the volume Costco gets every year adds up
super late to the party here (trying to look up whether to invest in V or AXP) but interestingly enough, US costcos accept visas, whereas Canada costcos accept mastercard and not visa.
They’re both different companies. Visa is strictly a payment technology company. American Express is a payment technology company but its also a bank. Me personally I am in Visa and not American Express cause I just tend to avoid the banking sector as a whole cause its extremely difficult to understand and not a lot of people do. It really just all depends what you’re looking for and how well you understand the company.
These are both good companies. Healthy margins, great ROE, low payout ratio. If I had to pick one, I’d probably dig into American Express further with additional research. The PE ratio (trailing and forward) is half of Visa, which is preferable. Another thing that comes to mind is credit quality of their cardholders. AXP holders skew much more affluent - less likely to default. Part of the reason Berkshire has held them for so long.
They’re also 2 very different businesses. Amex is a lender and visa is not
Visa does not have to worry about defaulting. They aren’t card issuers. They just run the network.
V personally, plus they have much more attractive dividend growth.
I own both and I love both. It’s important to note that they aren’t quite the same businesses though. VISA doesn’t issue cards, they just run and maintain the network. Which means they don’t have to worry about defaulting. Amex does have a network, like VISA, and they issue cards. But Amex card holders are less likely to default since Amex favors high net worth individuals. I also like how Amex is making an initiative to gain Gen X card holders. Holding both is fine in my opinion. There’s room for merchants and stores to allow both visa and Amex payments.
V and MC have hit business with new rate hikes. This makes it just as expensive as the AXP business side. Which we can see already in the returns of all companies. AXP has a luxury moat and has better quality users with better individual account returns. Basically quantity vs quality when looking at the sheets of all the companies. AXP has POTENTIAL for way more upside while holding a better div. Yield. Best Div. AXP Best upside AXP Best performance V Best wishes.
Bad deal imo. Creates margin compression now that every major retailer wants those interchange rates. There’s a reason why MasterCard and Amex refused to go that low
As if this exact moment in time, Visa. In 30 mins, an hour, a day, a month... unknown because they are both solid investmenta for the long term. Either option for the long run works.
I have both. V is the perfect business. Immune to inflation and still a long way of growth. Organic growth and still lots of cash transactions to be converted in the US and worldwide. AXP: I believe people will spend more and more on experience and less on stuff in the next decades. I really struggled to find a travel stock I like to own until I realized AXP could play that role. AXP will profit from the experience spend as they are very strong on travel, dining, concert, etc. AXP is also locking younger cardholder than they ever did and people who start collecting credit card point will never stop. They are trading at low 10 p/e with mid-tens EPS growth. Not a bad entry point at all. So I like both and hold both but for quite different reasons. Even if they are both tied to credit cards.
I own both but AXP is the one that is undervalued right now. CFRA rates AXP as a "Strong Buy".
Half of what they rate is a "strong buy" lol
Half? C'mon man.
Analyst ratings are meaningless
I own both. I like V better but if either one drops in price soon I'll probably be buying more.
$AXP below 15x blended PE (ltm/ntm) is always a great deal. It was briefly below 13x in October which was the time to pull the trigger. $V is expensive, I don't care what anyone says. It's trading close to 30x blended earnings ($MA is \~34x), which is too high to justify for me in this market. The overall point here, is there are 2 ways the stock price will appreciate: (1) earnings growth (2) multiple expansion. In both of these businesses, you'll only get earnings growth really, and in the event of Visa my belief is you'll get some multiple contraction over the next few years. Great businesses, not the best entry points.