American Express Company (AXP) vs The PNC Financial Services Group, Inc. (PNC): Which Is the Better Buy in 2026?
As of 2026-06-19, AXP is undervalued at $338, with a DCF intrinsic value of $484 and a margin of safety of 30%. PNC is undervalued at $232, with an intrinsic value of $315 and a margin of safety of 26%. Of the two, AXP has the wider margin of safety.
Rewards
- ★Gross margin of 62.8% 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.
- ★The PNC Financial Services Group, Inc. scores 75/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
- ★Each dollar of retained earnings has created $1.03 of earning power — management is creating shareholder value.
Risks
- ⚠Altman Z-Score of 0.93 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠17 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.
- ⚠Free cash flow has declined at a 5.9% CAGR over the past 4 years — a concerning trend.
- ⚠Gross margin of 0.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
- ⚠Altman Z-Score of 0.29 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠Free cash flow has declined at a 21.6% 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 →Requires positive FCF to compute implied growth rate.
Requires positive FCF to compute implied growth rate.
Economic Moat Score
Learn more →Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.
Wide moat driven primarily by revenue predictability. Reinvestment Efficiency 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 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.
Frequently Asked Questions: AXP vs PNC
Is American Express Company or The PNC Financial Services Group, Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, AXP trades at a 30.1% margin of safety (intrinsic value $484 vs. price $338), compared to PNC's 26.4% margin of safety (intrinsic $315 vs. $232).
Which stock has a wider economic moat, American Express Company or The PNC Financial Services Group, Inc.?▼
AXP scores 100/100 (Wide moat), while PNC scores 75/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is The PNC Financial Services Group, Inc. in financial distress?▼
PNC's Altman Z-Score of 0.3 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, American Express Company or The PNC Financial Services Group, Inc.?▼
AXP earns 12.2% ROIC versus PNC's 9.8%. 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, American Express Company's or The PNC Financial Services Group, Inc.'s?▼
AXP's dividend earns a safety score of 94/100 (Very Safe), compared to PNC's 79/100 (Safe). AXP has raised its dividend for 3 consecutive years.