American Express Company (AXP) vs Realty Income Corporation (O)
Rewards
- ★Gross margin of 62.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Gross margin of 92.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Free cash flow has grown at a 15.9% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Dividend yield of 5.07% with a consistent or growing payout over the past 4 years.
Risks
- ⚠7 insider sales totaling $36.4M with no purchases in the past 3 months — insiders are reducing their exposure.
- ⚠Return on equity has remained below 5% over 4 years — shareholder capital is generating minimal returns.
- ⚠Share count has increased by 41% over the past 4 years, diluting existing shareholders.
- ⚠FCF yield of 6.7% suggests reasonable valuation assuming continued moderate growth.
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.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
$1 Retained Earnings Test
Learn more →> $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 →Requires positive FCF to compute implied growth rate.
What growth rate is the market pricing in at $64?
The market implies +27.4% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +9.1%, reflecting heavy growth investment.
Economic Moat Score
Learn more →Insufficient data for Economic Moat Score calculation (requires 3+ years).
Narrow moat with margin stability as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.
Forensic Accounting
Learn more →Insufficient data for Beneish M-Score calculation (requires 2+ years).
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 pricing this stock without strong emotion in either direction"
"Market is optimistic — be cautious and ensure you have a margin of safety"
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.