Seek Returns logo

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

Updated on

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

Company Overview

AXP’s market capitalization stands at 229.88 billion USD, while LIN’s is 223.87 billion USD, indicating their market valuations are broadly comparable.

With betas of 1.25 for AXP and 0.98 for LIN, both stocks show similar sensitivity to overall market movements.

SymbolAXPLIN
Company NameAmerican Express CompanyLinde plc
CountryUSGB
SectorFinancial ServicesBasic Materials
IndustryFinancial - Credit ServicesChemicals - Specialty
CEOStephen Joseph SqueriSanjiv Lamba
Price328.13 USD475.58 USD
Market Cap229.88 billion USD223.87 billion USD
Beta1.250.98
ExchangeNYSENASDAQ
IPO DateJune 1, 1972June 17, 1992
ADRNoNo

Historical Performance

This chart compares the performance of AXP and LIN 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. LIN: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AXP

34.05%

Financial - Credit Services Industry

Max
34.05%
Q3
18.70%
Median
10.57%
Q1
3.55%
Min
-12.12%

In the upper quartile for the Financial - Credit Services industry, AXP’s Return on Equity of 34.05% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

LIN

17.23%

Chemicals - Specialty Industry

Max
34.45%
Q3
15.78%
Median
7.65%
Q1
2.96%
Min
-12.04%

In the upper quartile for the Chemicals - Specialty industry, LIN’s Return on Equity of 17.23% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AXP vs. LIN: A comparison of their ROE against their respective Financial - Credit Services and Chemicals - Specialty industry benchmarks.

Return on Invested Capital

AXP

8.40%

Financial - Credit Services Industry

Max
68.11%
Q3
32.26%
Median
9.52%
Q1
3.37%
Min
-7.03%

Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Credit Services industry.

LIN

8.94%

Chemicals - Specialty Industry

Max
20.22%
Q3
10.99%
Median
5.25%
Q1
3.06%
Min
-8.62%

LIN’s Return on Invested Capital of 8.94% is in line with the norm for the Chemicals - Specialty industry, reflecting a standard level of efficiency in generating profits from its capital base.

AXP vs. LIN: A comparison of their ROIC against their respective Financial - Credit Services and Chemicals - Specialty industry benchmarks.

Net Profit Margin

AXP

13.64%

Financial - Credit Services Industry

Max
39.42%
Q3
20.10%
Median
12.91%
Q1
5.82%
Min
-14.80%

AXP’s Net Profit Margin of 13.64% is aligned with the median group of its peers in the Financial - Credit Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

LIN

20.02%

Chemicals - Specialty Industry

Max
23.23%
Q3
10.64%
Median
5.14%
Q1
0.64%
Min
-8.93%

A Net Profit Margin of 20.02% places LIN in the upper quartile for the Chemicals - Specialty industry, signifying strong profitability and more effective cost management than most of its peers.

AXP vs. LIN: A comparison of their Net Profit Margin against their respective Financial - Credit Services and Chemicals - Specialty industry benchmarks.

Operating Profit Margin

AXP

17.36%

Financial - Credit Services Industry

Max
77.26%
Q3
42.86%
Median
17.99%
Q1
10.82%
Min
-14.94%

AXP’s Operating Profit Margin of 17.36% is around the midpoint for the Financial - Credit Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

LIN

26.42%

Chemicals - Specialty Industry

Max
26.42%
Q3
15.81%
Median
10.07%
Q1
4.82%
Min
-7.44%

An Operating Profit Margin of 26.42% places LIN in the upper quartile for the Chemicals - Specialty industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AXP vs. LIN: A comparison of their Operating Margin against their respective Financial - Credit Services and Chemicals - Specialty industry benchmarks.

Profitability at a Glance

SymbolAXPLIN
Return on Equity (TTM)34.05%17.23%
Return on Assets (TTM)3.64%7.99%
Return on Invested Capital (TTM)8.40%8.94%
Net Profit Margin (TTM)13.64%20.02%
Operating Profit Margin (TTM)17.36%26.42%
Gross Profit Margin (TTM)82.37%42.45%

Financial Strength

Current Ratio

AXP

0.32

Financial - Credit Services Industry

Max
8.15
Q3
4.39
Median
2.62
Q1
1.06
Min
0.15

For the Financial - Credit Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

LIN

0.94

Chemicals - Specialty Industry

Max
3.95
Q3
2.60
Median
2.04
Q1
1.60
Min
0.77

LIN’s Current Ratio of 0.94 falls into the lower quartile for the Chemicals - Specialty industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AXP vs. LIN: A comparison of their Current Ratio against their respective Financial - Credit Services and Chemicals - Specialty industry benchmarks.

Debt-to-Equity Ratio

AXP

1.69

Financial - Credit Services Industry

Max
4.69
Q3
2.55
Median
1.20
Q1
0.55
Min
0.00

AXP’s Debt-to-Equity Ratio of 1.69 is typical for the Financial - Credit Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

LIN

0.63

Chemicals - Specialty Industry

Max
1.65
Q3
1.10
Median
0.73
Q1
0.55
Min
0.01

LIN’s Debt-to-Equity Ratio of 0.63 is typical for the Chemicals - Specialty industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AXP vs. LIN: A comparison of their D/E Ratio against their respective Financial - Credit Services and Chemicals - Specialty industry benchmarks.

Interest Coverage Ratio

AXP

1.59

Financial - Credit Services Industry

Max
17.48
Q3
7.42
Median
1.59
Q1
0.38
Min
-7.77

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Credit Services industry.

LIN

34.75

Chemicals - Specialty Industry

Max
13.69
Q3
9.06
Median
5.24
Q1
1.68
Min
-3.09

With an Interest Coverage Ratio of 34.75, LIN demonstrates a superior capacity to service its debt, placing it well above the typical range for the Chemicals - Specialty industry. This stems from either robust earnings or a conservative debt load.

AXP vs. LIN: A comparison of their Interest Coverage against their respective Financial - Credit Services and Chemicals - Specialty industry benchmarks.

Financial Strength at a Glance

SymbolAXPLIN
Current Ratio (TTM)0.320.94
Quick Ratio (TTM)0.320.80
Debt-to-Equity Ratio (TTM)1.690.63
Debt-to-Asset Ratio (TTM)0.190.29
Net Debt-to-EBITDA Ratio (TTM)0.031.48
Interest Coverage Ratio (TTM)1.5934.75

Growth

The following charts compare key year-over-year (YoY) growth metrics for AXP and LIN. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AXP vs. LIN: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AXP vs. LIN: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AXP vs. LIN: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AXP

0.93%

Financial - Credit Services Industry

Max
14.68%
Q3
2.97%
Median
1.03%
Q1
0.00%
Min
0.00%

AXP’s Dividend Yield of 0.93% is consistent with its peers in the Financial - Credit Services industry, providing a dividend return that is standard for its sector.

LIN

1.22%

Chemicals - Specialty Industry

Max
9.19%
Q3
2.44%
Median
1.46%
Q1
0.25%
Min
0.00%

LIN’s Dividend Yield of 1.22% is consistent with its peers in the Chemicals - Specialty industry, providing a dividend return that is standard for its sector.

AXP vs. LIN: A comparison of their Dividend Yield against their respective Financial - Credit Services and Chemicals - Specialty industry benchmarks.

Dividend Payout Ratio

AXP

20.01%

Financial - Credit Services Industry

Max
169.58%
Q3
38.15%
Median
18.30%
Q1
0.00%
Min
0.00%

AXP’s Dividend Payout Ratio of 20.01% is within the typical range for the Financial - Credit Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

LIN

40.75%

Chemicals - Specialty Industry

Max
163.70%
Q3
57.04%
Median
30.02%
Q1
12.51%
Min
0.00%

LIN’s Dividend Payout Ratio of 40.75% is within the typical range for the Chemicals - Specialty industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AXP vs. LIN: A comparison of their Payout Ratio against their respective Financial - Credit Services and Chemicals - Specialty industry benchmarks.

Dividend at a Glance

SymbolAXPLIN
Dividend Yield (TTM)0.93%1.22%
Dividend Payout Ratio (TTM)20.01%40.75%

Valuation

Price-to-Earnings Ratio

AXP

22.38

Financial - Credit Services Industry

Max
42.04
Q3
25.88
Median
12.28
Q1
9.55
Min
3.09

AXP’s P/E Ratio of 22.38 is within the middle range for the Financial - Credit Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

LIN

34.05

Chemicals - Specialty Industry

Max
56.68
Q3
33.75
Median
23.45
Q1
16.09
Min
7.50

A P/E Ratio of 34.05 places LIN in the upper quartile for the Chemicals - Specialty industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

AXP vs. LIN: A comparison of their P/E Ratio against their respective Financial - Credit Services and Chemicals - Specialty industry benchmarks.

Forward P/E to Growth Ratio

AXP

2.10

Financial - Credit Services Industry

Max
2.76
Q3
1.57
Median
0.82
Q1
0.51
Min
0.06

A Forward PEG Ratio of 2.10 places AXP in the upper quartile for the Financial - Credit Services industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

LIN

4.93

Chemicals - Specialty Industry

Max
6.58
Q3
3.23
Median
1.64
Q1
0.96
Min
0.16

A Forward PEG Ratio of 4.93 places LIN in the upper quartile for the Chemicals - Specialty industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

AXP vs. LIN: A comparison of their Forward PEG Ratio against their respective Financial - Credit Services and Chemicals - Specialty industry benchmarks.

Price-to-Sales Ratio

AXP

3.05

Financial - Credit Services Industry

Max
6.24
Q3
3.02
Median
1.54
Q1
0.75
Min
0.32

The P/S Ratio is often not a primary valuation tool in the Financial - Credit Services industry.

LIN

6.78

Chemicals - Specialty Industry

Max
3.76
Q3
2.31
Median
1.38
Q1
0.89
Min
0.16

With a P/S Ratio of 6.78, LIN trades at a valuation that eclipses even the highest in the Chemicals - Specialty industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AXP vs. LIN: A comparison of their P/S Ratio against their respective Financial - Credit Services and Chemicals - Specialty industry benchmarks.

Price-to-Book Ratio

AXP

7.37

Financial - Credit Services Industry

Max
3.58
Q3
2.84
Median
1.28
Q1
0.84
Min
0.07

At 7.37, AXP’s P/B Ratio is at an extreme premium to the Financial - Credit Services 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.

LIN

5.92

Chemicals - Specialty Industry

Max
6.73
Q3
3.78
Median
1.56
Q1
1.27
Min
0.35

LIN’s P/B Ratio of 5.92 is in the upper tier for the Chemicals - Specialty industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

AXP vs. LIN: A comparison of their P/B Ratio against their respective Financial - Credit Services and Chemicals - Specialty industry benchmarks.

Valuation at a Glance

SymbolAXPLIN
Price-to-Earnings Ratio (P/E, TTM)22.3834.05
Forward PEG Ratio (TTM)2.104.93
Price-to-Sales Ratio (P/S, TTM)3.056.78
Price-to-Book Ratio (P/B, TTM)7.375.92
Price-to-Free Cash Flow Ratio (P/FCF, TTM)20.3145.58
EV-to-EBITDA (TTM)15.5619.26
EV-to-Sales (TTM)3.067.34