AXP vs. RGA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AXP and RGA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AXP’s market capitalization of 229.88 billion USD is substantially larger than RGA’s 13.07 billion USD, indicating a significant difference in their market valuations.
AXP’s beta of 1.25 points to significantly higher volatility compared to RGA (beta: 0.63), suggesting AXP has greater potential for both gains and losses relative to market movements.
| Symbol | AXP | RGA |
|---|---|---|
| Company Name | American Express Company | Reinsurance Group of America, Incorporated |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Credit Services | Insurance - Reinsurance |
| CEO | Stephen Joseph Squeri | Tony Cheng |
| Price | 328.13 USD | 197.79 USD |
| Market Cap | 229.88 billion USD | 13.07 billion USD |
| Beta | 1.25 | 0.63 |
| Exchange | NYSE | NYSE |
| IPO Date | June 1, 1972 | September 12, 2008 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AXP and RGA 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.
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.
RGA
7.36%
Insurance - Reinsurance Industry
- Max
- 18.30%
- Q3
- 14.16%
- Median
- 8.39%
- Q1
- 7.08%
- Min
- 5.91%
RGA’s Return on Equity of 7.36% is on par with the norm for the Insurance - Reinsurance industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
RGA
0.62%
Insurance - Reinsurance Industry
- Max
- 126.30%
- Q3
- 60.66%
- Median
- 7.25%
- Q1
- 3.18%
- Min
- 0.62%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Reinsurance industry.
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.
RGA
3.77%
Insurance - Reinsurance Industry
- Max
- 21.27%
- Q3
- 12.90%
- Median
- 9.40%
- Q1
- 5.62%
- Min
- 3.77%
Falling into the lower quartile for the Insurance - Reinsurance industry, RGA’s Net Profit Margin of 3.77% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
RGA
5.12%
Insurance - Reinsurance Industry
- Max
- 17.83%
- Q3
- 15.41%
- Median
- 8.11%
- Q1
- 5.86%
- Min
- 4.12%
RGA’s Operating Profit Margin of 5.12% is in the lower quartile for the Insurance - Reinsurance industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | AXP | RGA |
|---|---|---|
| Return on Equity (TTM) | 34.05% | 7.36% |
| Return on Assets (TTM) | 3.64% | 0.62% |
| Return on Invested Capital (TTM) | 8.40% | 0.62% |
| Net Profit Margin (TTM) | 13.64% | 3.77% |
| Operating Profit Margin (TTM) | 17.36% | 5.12% |
| Gross Profit Margin (TTM) | 82.37% | 73.13% |
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.
RGA
--
Insurance - Reinsurance Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
Current Ratio data for RGA is currently unavailable.
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.
RGA
0.50
Insurance - Reinsurance Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
RGA has a Debt-to-Equity Ratio of 0.50, but industry benchmarks for the Insurance - Reinsurance sector are currently unavailable for comparison.
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.
RGA
3.41
Insurance - Reinsurance Industry
- Max
- 22.46
- Q3
- 18.27
- Median
- 5.57
- Q1
- 4.93
- Min
- 3.41
In the lower quartile for the Insurance - Reinsurance industry, RGA’s Interest Coverage Ratio of 3.41 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | AXP | RGA |
|---|---|---|
| Current Ratio (TTM) | 0.32 | -- |
| Quick Ratio (TTM) | 0.32 | -- |
| Debt-to-Equity Ratio (TTM) | 1.69 | 0.50 |
| Debt-to-Asset Ratio (TTM) | 0.19 | 0.04 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.03 | 0.54 |
| Interest Coverage Ratio (TTM) | 1.59 | 3.41 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AXP and RGA. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
RGA
1.80%
Insurance - Reinsurance Industry
- Max
- 2.38%
- Q3
- 1.52%
- Median
- 0.33%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.80%, RGA offers a more attractive income stream than most of its peers in the Insurance - Reinsurance industry, signaling a strong commitment to shareholder returns.
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.
RGA
29.26%
Insurance - Reinsurance Industry
- Max
- 40.35%
- Q3
- 23.76%
- Median
- 7.09%
- Q1
- 1.73%
- Min
- 0.00%
RGA’s Dividend Payout Ratio of 29.26% is in the upper quartile for the Insurance - Reinsurance industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AXP | RGA |
|---|---|---|
| Dividend Yield (TTM) | 0.93% | 1.80% |
| Dividend Payout Ratio (TTM) | 20.01% | 29.26% |
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.
RGA
16.46
Insurance - Reinsurance Industry
- Max
- 16.92
- Q3
- 16.06
- Median
- 12.86
- Q1
- 8.23
- Min
- 5.12
A P/E Ratio of 16.46 places RGA in the upper quartile for the Insurance - Reinsurance industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
RGA
1.52
Insurance - Reinsurance Industry
- Max
- 1.52
- Q3
- 1.04
- Median
- 0.71
- Q1
- 0.38
- Min
- 0.20
RGA’s Forward PEG Ratio of 1.52 is exceptionally high for the Insurance - Reinsurance industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
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.
RGA
0.62
Insurance - Reinsurance Industry
- Max
- 1.18
- Q3
- 1.07
- Median
- 0.91
- Q1
- 0.83
- Min
- 0.62
The P/S Ratio is often not a primary valuation tool in the Insurance - Reinsurance industry.
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.
RGA
1.15
Insurance - Reinsurance Industry
- Max
- 1.19
- Q3
- 1.18
- Median
- 1.08
- Q1
- 0.93
- Min
- 0.73
RGA’s P/B Ratio of 1.15 is within the conventional range for the Insurance - Reinsurance industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AXP | RGA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 22.38 | 16.46 |
| Forward PEG Ratio (TTM) | 2.10 | 1.52 |
| Price-to-Sales Ratio (P/S, TTM) | 3.05 | 0.62 |
| Price-to-Book Ratio (P/B, TTM) | 7.37 | 1.15 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.31 | 2.58 |
| EV-to-EBITDA (TTM) | 15.56 | 12.68 |
| EV-to-Sales (TTM) | 3.06 | 0.65 |