Analyzing Dave (NASDAQ:DAVE) & American Express (NYSE:AXP)

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

Analyst Recommendations

This is a summary of current recommendations for American Express and Dave, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Express	1	13	17	1	2.56
Dave	0	4	14	0	2.78

American Express presently has a consensus price target of $365.22, indicating a potential upside of 13.14%. Dave has a consensus price target of $425.69, indicating a potential upside of 50.98%. Given Dave’s stronger consensus rating and higher possible upside, analysts clearly believe Dave is more favorable than American Express.

Insider & Institutional Ownership

84.3% of American Express shares are held by institutional investors. Comparatively, 18.0% of Dave shares are held by institutional investors. 0.1% of American Express shares are held by insiders. Comparatively, 23.6% of Dave shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

American Express has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Dave has a beta of 4.07, meaning that its stock price is 307% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Express	15.80%	34.19%	3.83%
Dave	28.15%	59.86%	28.08%

Valuation and Earnings

This table compares American Express and Dave”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Express	$77.59 billion	2.79	$10.83 billion	$17.76	18.18
Dave	$690.63 million	5.21	$195.87 million	$12.38	22.78

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

Summary

Dave beats American Express on 9 of the 15 factors compared between the two stocks.

About American Express

American Express Company is a global payments and financial services company that operates a card-issuing business and a payments network. Its products and services include consumer, small-business and corporate cards, payment processing, lending, travel services and expense-management solutions. Founded in 1850 as an express mail business, the company expanded into financial services and became known for its charge cards and travel-related services. Today, it serves cardholders and businesses in the United States and markets around the world, connecting customers, merchants and financial institutions through its network.

About Dave

Dave Inc. is a financial technology company that operates a mobile banking and personal finance platform in the United States. Its app is designed to help members manage everyday finances and access financial products through a digital interface. The company’s offerings include ExtraCash, a cash advance product, and Dave Checking, along with budgeting features and tools intended to help users monitor spending and avoid overdrafts. Dave also provides access to job opportunities through its Side Hustle feature.