Head to Head Analysis: American Express (NYSE:AXP) vs. Burford Capital (NYSE:BUR)

American Express (NYSE:AXP – Get Free Report) and Burford Capital (NYSE:BUR – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Earnings & Valuation

This table compares American Express and Burford Capital’s gross revenue, earnings per share and valuation.

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American Express has higher revenue and earnings than Burford Capital.

Insider & Institutional Ownership

82.8% of American Express shares are held by institutional investors. 0.1% of American Express shares are held by company insiders. Comparatively, 0.2% of Burford Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Analyst Recommendations

This is a summary of current recommendations for American Express and Burford Capital, as provided by MarketBeat.com.

American Express currently has a consensus price target of $172.65, indicating a potential downside of 0.43%. Burford Capital has a consensus price target of $17.00, indicating a potential upside of 42.26%. Given Burford Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Burford Capital is more favorable than American Express.

Dividends

American Express pays an annual dividend of $2.40 per share and has a dividend yield of 1.4%. Burford Capital pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. American Express pays out 25.2% of its earnings in the form of a dividend. American Express has increased its dividend for 2 consecutive years. American Express is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

American Express beats Burford Capital on 9 of the 14 factors compared between the two stocks.

About American Express

(Get Free Report)

American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services worldwide. The company operates through three segments: Global Consumer Services Group, Global Commercial Services, and Global Merchant and Network Services. Its products and services include payment and financing products; network services; accounts payable expense management products and services; and travel and lifestyle services. The company's 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. It sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, third-party vendors and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York.

About Burford Capital

(Get Free Report)

Burford Capital Limited, through its subsidiaries, provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. The company also offers alternative strategies, including lower risk legal finance, post-settlement, and complex strategies. The company was incorporated in 2009 and is based in Saint Peter Port, Guernsey.

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