Sprott (NYSE:SII) and American Express (NYSE:AXP) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.
Insider and Institutional Ownership
15.8% of Sprott shares are held by institutional investors. Comparatively, 76.1% of American Express shares are held by institutional investors. 0.2% of American Express shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Sprott and American Express’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Sprott and American Express, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sprott currently has a consensus price target of $46.00, indicating a potential upside of 55.77%. American Express has a consensus price target of $106.26, indicating a potential downside of 5.61%. Given Sprott’s higher probable upside, research analysts clearly believe Sprott is more favorable than American Express.
Sprott pays an annual dividend of $0.90 per share and has a dividend yield of 3.0%. American Express pays an annual dividend of $1.72 per share and has a dividend yield of 1.5%. Sprott pays out 2,250.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Express pays out 21.0% of its earnings in the form of a dividend. Sprott has increased its dividend for 1 consecutive years and American Express has increased its dividend for 8 consecutive years.
Valuation & Earnings
This table compares Sprott and American Express’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sprott||$72.50 million||10.39||$10.20 million||$0.04||738.25|
|American Express||$43.56 billion||2.08||$6.76 billion||$8.20||13.73|
American Express has higher revenue and earnings than Sprott. American Express is trading at a lower price-to-earnings ratio than Sprott, indicating that it is currently the more affordable of the two stocks.
American Express beats Sprott on 10 of the 16 factors compared between the two stocks.
Sprott Company Profile
Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.
American Express Company Profile
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; expense management products and services; 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.
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