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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Weidai and American Express, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weidai 0 0 0 0 N/A
American Express 1 9 14 0 2.54

American Express has a consensus price target of $112.36, indicating a potential upside of 3.83%. Given American Express’ higher probable upside, analysts plainly believe American Express is more favorable than Weidai.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weidai N/A N/A N/A N/A N/A
American Express $33.47 billion 2.76 $2.74 billion $5.87 18.44

American Express has higher revenue and earnings than Weidai.

Profitability

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

Net Margins Return on Equity Return on Assets
Weidai N/A N/A N/A
American Express 9.51% 31.26% 3.41%

Dividends

American Express pays an annual dividend of $1.56 per share and has a dividend yield of 1.4%. Weidai does not pay a dividend. American Express pays out 26.6% of its earnings in the form of a dividend. American Express has raised its dividend for 6 consecutive years.

Insider and Institutional Ownership

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

Summary

American Express beats Weidai on 10 of the 11 factors compared between the two stocks.

About Weidai

Weidai Ltd., through its subsidiaries, provides auto-backed financing solutions in the People's Republic of China. Its auto-backed financing platform connects borrowers primarily mall and micro enterprise owners with online investors and institutional funding partners. The company was founded in 2011 and is headquartered in Hangzhou, the People's Republic of China.

About American Express

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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