American Express Company (AXP) vs Discover Financial Services (DFS)

DFS leads on 12 of 17 compared metrics.

A side-by-side comparison of American Express Company and Discover Financial Services across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

Total return — AXP vs DFS

growth of $100 · last 18y
AXP +374.7%DFS +595.8%DFS compounded faster
0200400600Start $100201020132016201920222025$475$696
AXP DFS

AXP vs DFS: by the numbers

  • AXP is the larger company ($222.06B vs $50.34B market cap).
  • DFS trades at the lower earnings multiple (10.67 vs 20.30 P/E).
  • DFS converts more revenue to profit (21.65% vs 13.61% net margin).
  • AXP grew revenue faster over the past five years (17.35% vs 13.84% CAGR).
  • DFS pays the higher dividend yield (1.40% vs 1.05%).

Which is better, AXP or DFS?

Metric tally: AXP 5 · DFS 12

It depends on what you're optimizing for:

ValueDFS(lower P/E)
GrowthAXP(faster 5Y revenue CAGR)
IncomeDFS(higher dividend yield)
QualityDFS(higher ROIC)

Valuation

MetricAXPDFS
P/E ratio20.3010.67
Forward P/E16.1512.59
P/S ratio2.712.28
P/B ratio6.572.66
PEG ratio2.430.15
EV / EBITDA12.496.75
FCF yield6.41%16.78%

Profitability

MetricAXPDFS
Gross margin83.50%65.86%
Operating margin20.70%34.55%
Net margin13.61%21.65%
ROE33.00%25.29%
ROIC8.29%32.48%

Dividends

MetricAXPDFS
Dividend yield1.05%1.40%
Payout ratio22.13%15.81%

Growth (annualized)

MetricAXPDFS
Revenue CAGR (5Y)17.35%13.84%
EPS CAGR (5Y)32.53%14.26%
FCF CAGR (5Y)10.67%9.87%
Total return CAGR (5Y)16.01%42.63%

Frequently asked

Which is better, AXP or DFS?
It depends on your goal. value: DFS (lower P/E); growth: AXP (faster 5Y revenue CAGR); income: DFS (higher dividend yield); quality: DFS (higher ROIC). Across all compared metrics, DFS leads 12 to 5.
Is AXP or DFS cheaper?
On trailing earnings, DFS is cheaper: AXP trades at a 20.30 P/E and DFS at 10.67.
Which has grown faster, AXP or DFS?
Over the past five years, AXP grew revenue faster — AXP at a 17.35% CAGR versus DFS at 13.84%.
Does AXP or DFS pay a bigger dividend?
AXP yields 1.05% and DFS yields 1.40% based on trailing dividends and the latest price.
Is AXP or DFS more profitable?
DFS runs the higher net margin — AXP at 13.61% versus DFS at 21.65%.
Which has been the better investment, AXP or DFS?
Over the past 10-year, AXP delivered the higher annualized total return — AXP at 19.13% versus DFS at 15.34%. Past performance doesn't predict future results.

Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 13, 2026.