DFS vs. COF, CACC, SLM, NNI, ECPG, PRAA, WRLD, EZPW, GDOT, and RM
Should you be buying Discover Financial Services stock or one of its competitors? The main competitors of Discover Financial Services include Capital One Financial (COF), Credit Acceptance (CACC), SLM (SLM), Nelnet (NNI), Encore Capital Group (ECPG), PRA Group (PRAA), World Acceptance (WRLD), EZCORP (EZPW), Green Dot (GDOT), and Regional Management (RM). These companies are all part of the "consumer finance" industry.
Discover Financial Services (NYSE:DFS) and Capital One Financial (NYSE:COF) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, media sentiment, valuation, institutional ownership, profitability, analyst recommendations and community ranking.
Discover Financial Services presently has a consensus target price of $126.29, suggesting a potential upside of 2.96%. Capital One Financial has a consensus target price of $138.50, suggesting a potential upside of 0.63%. Given Discover Financial Services' stronger consensus rating and higher possible upside, equities analysts clearly believe Discover Financial Services is more favorable than Capital One Financial.
Capital One Financial has higher revenue and earnings than Discover Financial Services. Capital One Financial is trading at a lower price-to-earnings ratio than Discover Financial Services, indicating that it is currently the more affordable of the two stocks.
Discover Financial Services has a net margin of 10.56% compared to Capital One Financial's net margin of 10.19%. Discover Financial Services' return on equity of 17.07% beat Capital One Financial's return on equity.
Discover Financial Services received 98 more outperform votes than Capital One Financial when rated by MarketBeat users. Likewise, 73.59% of users gave Discover Financial Services an outperform vote while only 65.84% of users gave Capital One Financial an outperform vote.
Discover Financial Services has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.
86.9% of Discover Financial Services shares are owned by institutional investors. Comparatively, 89.8% of Capital One Financial shares are owned by institutional investors. 0.7% of Discover Financial Services shares are owned by insiders. Comparatively, 1.3% of Capital One Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
In the previous week, Discover Financial Services had 10 more articles in the media than Capital One Financial. MarketBeat recorded 20 mentions for Discover Financial Services and 10 mentions for Capital One Financial. Discover Financial Services' average media sentiment score of 1.04 beat Capital One Financial's score of 0.68 indicating that Discover Financial Services is being referred to more favorably in the media.
Discover Financial Services pays an annual dividend of $2.80 per share and has a dividend yield of 2.3%. Capital One Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.7%. Discover Financial Services pays out 31.9% of its earnings in the form of a dividend. Capital One Financial pays out 18.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Summary
Discover Financial Services beats Capital One Financial on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DFS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
Discover Financial Services Competitors List
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