American Express (NYSE:AXP) and Senmiao Technology (NASDAQ:AIHS) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
American Express pays an annual dividend of $1.56 per share and has a dividend yield of 1.2%. Senmiao Technology does not pay a dividend. American Express pays out 21.3% of its earnings in the form of a dividend. American Express has increased its dividend for 7 consecutive years.
Valuation & Earnings
This table compares American Express and Senmiao Technology’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American Express||$40.34 billion||2.58||$6.92 billion||$7.33||17.03|
|Senmiao Technology||$2.92 million||10.83||-$4.53 million||N/A||N/A|
American Express has higher revenue and earnings than Senmiao Technology.
This table compares American Express and Senmiao Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for American Express and Senmiao Technology, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
American Express currently has a consensus target price of $123.23, indicating a potential downside of 1.28%. Given American Express’ higher probable upside, analysts clearly believe American Express is more favorable than Senmiao Technology.
Insider & Institutional Ownership
83.6% of American Express shares are owned by institutional investors. Comparatively, 0.1% of Senmiao Technology shares are owned by institutional investors. 0.2% of American Express shares are owned by insiders. Comparatively, 45.2% of Senmiao Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
American Express has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Senmiao Technology has a beta of -0.2, indicating that its share price is 120% less volatile than the S&P 500.
American Express beats Senmiao Technology on 11 of the 14 factors compared between the two stocks.
American Express Company Profile
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 three segments: Global Consumer Services Group, Global Commercial Services, and Global Merchant and Network 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 prepaid products. Its products and services also comprise merchant acquisition and processing, servicing and settlement, 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 and mobile applications, third-party vendors and business partners, direct mail, telephone, in-house teams, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York.
Senmiao Technology Company Profile
Senmiao Technology Limited, through its interest in Sichuan Senmiao Ronglian Technology Co., Ltd., operates an online lending platform connecting Chinese investors with individual and small- to-medium-sized enterprise borrowers in China. Its platform offers access to credit to borrowers and creditors, and investment returns for investors. The company was incorporated in 2017 and is based in Chengdu, China.
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