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AXP vs. HD: A Head-to-Head Stock Comparison

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Here’s a clear look at AXP and HD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAXPHD
Company NameAmerican Express CompanyThe Home Depot, Inc.
CountryUnited StatesUnited States
GICS SectorFinancialsConsumer Discretionary
GICS IndustryConsumer FinanceSpecialty Retail
Market Capitalization214.61 billion USD399.70 billion USD
ExchangeNYSENYSE
Listing DateJune 1, 1972September 22, 1981
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AXP and HD by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

AXP vs. HD: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAXPHD
5-Day Price Return0.22%0.35%
13-Week Price Return3.04%5.89%
26-Week Price Return0.29%-2.59%
52-Week Price Return21.39%10.65%
Month-to-Date Return3.04%9.31%
Year-to-Date Return3.91%3.28%
10-Day Avg. Volume2.33M3.91M
3-Month Avg. Volume2.74M3.39M
3-Month Volatility22.06%19.91%
Beta1.321.01

Profitability

Return on Equity (TTM)

AXP

32.87%

Consumer Finance Industry

Max
32.87%
Q3
20.39%
Median
14.14%
Q1
7.64%
Min
-10.63%

In the upper quartile for the Consumer Finance industry, AXP’s Return on Equity of 32.87% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

HD

188.48%

Specialty Retail Industry

Max
61.19%
Q3
37.24%
Median
18.81%
Q1
8.92%
Min
-13.03%

HD’s Return on Equity of 188.48% is exceptionally high, placing it well beyond the typical range for the Specialty Retail industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

AXP vs. HD: A comparison of their Return on Equity (TTM) against their respective Consumer Finance and Specialty Retail industry benchmarks.

Net Profit Margin (TTM)

AXP

13.55%

Consumer Finance Industry

Max
19.68%
Q3
15.94%
Median
13.37%
Q1
9.73%
Min
3.66%

AXP’s Net Profit Margin of 13.55% is aligned with the median group of its peers in the Consumer Finance industry. This indicates its ability to convert revenue into profit is typical for the sector.

HD

8.86%

Specialty Retail Industry

Max
21.28%
Q3
10.68%
Median
6.08%
Q1
2.43%
Min
-4.54%

HD’s Net Profit Margin of 8.86% is aligned with the median group of its peers in the Specialty Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.

AXP vs. HD: A comparison of their Net Profit Margin (TTM) against their respective Consumer Finance and Specialty Retail industry benchmarks.

Operating Profit Margin (TTM)

AXP

17.15%

Consumer Finance Industry

Max
50.11%
Q3
29.38%
Median
18.31%
Q1
14.26%
Min
-5.45%

AXP’s Operating Profit Margin of 17.15% is around the midpoint for the Consumer Finance industry, indicating that its efficiency in managing core business operations is typical for the sector.

HD

13.09%

Specialty Retail Industry

Max
33.35%
Q3
15.84%
Median
9.34%
Q1
3.83%
Min
-8.97%

HD’s Operating Profit Margin of 13.09% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

AXP vs. HD: A comparison of their Operating Profit Margin (TTM) against their respective Consumer Finance and Specialty Retail industry benchmarks.

Profitability at a Glance

SymbolAXPHD
Return on Equity (TTM)32.87%188.48%
Return on Assets (TTM)3.62%14.91%
Net Profit Margin (TTM)13.55%8.86%
Operating Profit Margin (TTM)17.15%13.09%
Gross Profit Margin (TTM)61.37%33.35%

Financial Strength

Current Ratio (MRQ)

AXP

0.71

Consumer Finance Industry

Max
5.34
Q3
4.21
Median
2.67
Q1
0.71
Min
0.20

For the Consumer Finance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

HD

1.15

Specialty Retail Industry

Max
2.83
Q3
1.89
Median
1.39
Q1
1.11
Min
0.64

HD’s Current Ratio of 1.15 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.

AXP vs. HD: A comparison of their Current Ratio (MRQ) against their respective Consumer Finance and Specialty Retail industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AXP

6.47

Consumer Finance Industry

Max
6.63
Q3
3.39
Median
2.21
Q1
0.94
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Consumer Finance industry.

HD

4.91

Specialty Retail Industry

Max
3.02
Q3
1.57
Median
0.64
Q1
0.20
Min
0.00

With a Debt-to-Equity Ratio of 4.91, HD operates with exceptionally high leverage compared to the Specialty Retail industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

AXP vs. HD: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Consumer Finance and Specialty Retail industry benchmarks.

Interest Coverage Ratio (TTM)

AXP

33.37

Consumer Finance Industry

Max
49.63
Q3
39.33
Median
4.56
Q1
2.97
Min
-15.69

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Consumer Finance industry.

HD

10.15

Specialty Retail Industry

Max
48.12
Q3
35.95
Median
14.13
Q1
3.61
Min
-36.00

HD’s Interest Coverage Ratio of 10.15 is positioned comfortably within the norm for the Specialty Retail industry, indicating a standard and healthy capacity to cover its interest payments.

AXP vs. HD: A comparison of their Interest Coverage Ratio (TTM) against their respective Consumer Finance and Specialty Retail industry benchmarks.

Financial Strength at a Glance

SymbolAXPHD
Current Ratio (MRQ)0.711.15
Quick Ratio (MRQ)0.710.34
Debt-to-Equity Ratio (MRQ)6.474.91
Interest Coverage Ratio (TTM)33.3710.15

Growth

Revenue Growth

AXP vs. HD: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AXP vs. HD: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AXP

0.99%

Consumer Finance Industry

Max
8.31%
Q3
3.93%
Median
2.51%
Q1
0.84%
Min
0.00%

AXP’s Dividend Yield of 0.99% is consistent with its peers in the Consumer Finance industry, providing a dividend return that is standard for its sector.

HD

2.23%

Specialty Retail Industry

Max
6.53%
Q3
2.69%
Median
1.08%
Q1
0.00%
Min
0.00%

HD’s Dividend Yield of 2.23% is consistent with its peers in the Specialty Retail industry, providing a dividend return that is standard for its sector.

AXP vs. HD: A comparison of their Dividend Yield (TTM) against their respective Consumer Finance and Specialty Retail industry benchmarks.

Dividend Payout Ratio (TTM)

AXP

20.97%

Consumer Finance Industry

Max
145.89%
Q3
88.53%
Median
23.79%
Q1
0.00%
Min
0.00%

AXP’s Dividend Payout Ratio of 20.97% is within the typical range for the Consumer Finance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

HD

61.82%

Specialty Retail Industry

Max
165.81%
Q3
80.94%
Median
31.61%
Q1
0.00%
Min
0.00%

HD’s Dividend Payout Ratio of 61.82% is within the typical range for the Specialty Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AXP vs. HD: A comparison of their Dividend Payout Ratio (TTM) against their respective Consumer Finance and Specialty Retail industry benchmarks.

Dividend at a Glance

SymbolAXPHD
Dividend Yield (TTM)0.99%2.23%
Dividend Payout Ratio (TTM)20.97%61.82%

Valuation

Price-to-Earnings Ratio (TTM)

AXP

21.11

Consumer Finance Industry

Max
34.39
Q3
20.36
Median
13.05
Q1
9.29
Min
4.74

A P/E Ratio of 21.11 places AXP in the upper quartile for the Consumer Finance industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

HD

27.77

Specialty Retail Industry

Max
48.56
Q3
29.15
Median
22.00
Q1
15.46
Min
7.95

HD’s P/E Ratio of 27.77 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AXP vs. HD: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Consumer Finance and Specialty Retail industry benchmarks.

Price-to-Sales Ratio (TTM)

AXP

2.86

Consumer Finance Industry

Max
4.28
Q3
2.67
Median
1.88
Q1
1.15
Min
0.55

AXP’s P/S Ratio of 2.86 is in the upper echelon for the Consumer Finance industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

HD

2.46

Specialty Retail Industry

Max
5.08
Q3
2.69
Median
1.23
Q1
0.48
Min
0.09

HD’s P/S Ratio of 2.46 aligns with the market consensus for the Specialty Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AXP vs. HD: A comparison of their Price-to-Sales Ratio (TTM) against their respective Consumer Finance and Specialty Retail industry benchmarks.

Price-to-Book Ratio (MRQ)

AXP

6.87

Consumer Finance Industry

Max
3.63
Q3
2.40
Median
1.96
Q1
1.16
Min
0.26

At 6.87, AXP’s P/B Ratio is at an extreme premium to the Consumer Finance industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

HD

35.53

Specialty Retail Industry

Max
16.93
Q3
7.98
Median
3.69
Q1
1.79
Min
0.21

At 35.53, HD’s P/B Ratio is at an extreme premium to the Specialty Retail industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

AXP vs. HD: A comparison of their Price-to-Book Ratio (MRQ) against their respective Consumer Finance and Specialty Retail industry benchmarks.

Valuation at a Glance

SymbolAXPHD
Price-to-Earnings Ratio (TTM)21.1127.77
Price-to-Sales Ratio (TTM)2.862.46
Price-to-Book Ratio (MRQ)6.8735.53
Price-to-Free Cash Flow Ratio (TTM)16.0328.55