Alexandria Real Estate Equities, Inc. (ARE) vs American Express Company (AXP): Which Is the Better Buy in 2026?
As of 2026-11-01, ARE is fairly valued at $40, with a DCF intrinsic value of $40 and a margin of safety of -0%. AXP is undervalued at $319, with an intrinsic value of $462 and a margin of safety of 31%. Of the two, AXP has the wider margin of safety.
Rewards
- ★Gross margin of 67.7% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★FCF yield of 18.4% is historically attractive — the business generates significant cash relative to its price.
- ★Gross margin of 62.0% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★American Express Company scores 100/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
- ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
Risks
- ⚠PEG ratio of 3.24 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠Net debt/EBITDA of 7.5x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
- ⚠Altman Z-Score of 0.43 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠Altman Z-Score of 0.93 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠Insiders have sold $3.0M worth of stock in the past 3 months — significant insider liquidation.
- ⚠Free cash flow has declined at a 5.9% CAGR over the past 4 years — a concerning trend.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $40?
Market roughly matching historical growth — reasonable.
Requires positive FCF to compute implied growth rate.
Economic Moat Score
Learn more →Narrow moat with margin stability as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.
Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.
Forensic Accounting
Learn more →M-Score Trend
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pessimistic — investigate whether fears are temporary or structural"
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: ARE vs AXP
Is Alexandria Real Estate Equities, Inc. or American Express Company more undervalued in 2026?▼
Based on our discounted cash flow model, AXP trades at a 31.0% margin of safety (intrinsic value $462 vs. price $319), compared to ARE's -0.0% margin of safety (intrinsic $40 vs. $40).
Which stock has a wider economic moat, Alexandria Real Estate Equities, Inc. or American Express Company?▼
AXP scores 100/100 (Wide moat), while ARE scores 50/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Alexandria Real Estate Equities, Inc. in financial distress?▼
ARE's Altman Z-Score of 0.4 places it in the Distress zone, signaling elevated bankruptcy risk. AXP scores 0.9 (Distress zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.
Which stock has higher return on invested capital, Alexandria Real Estate Equities, Inc. or American Express Company?▼
AXP earns 11.1% ROIC versus ARE's 1.0%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.
Which dividend is safer, Alexandria Real Estate Equities, Inc.'s or American Express Company's?▼
AXP's dividend earns a safety score of 94/100 (Very Safe), compared to ARE's 59/100 (Borderline). AXP has raised its dividend for 3 consecutive years.