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Visa vs. American Express: Which Credit Card Stock is a Better Choice?

Published 08/18/2021, 11:13 AM
Updated 08/18/2021, 12:30 PM
© Reuters.  Visa vs. American Express: Which Credit Card Stock is a Better Choice?

Credit card use and spending continue to grow at a healthy clip along with strong consumer spending figures and less use of cash and checks. These companies have been outperformers and are likely to continue doing so this cycle especially as the consumer is in good shape. This is evident through defaults being at record lows, household savings at record highs, and a strong jobs market. Betting on American consumers to keep spending more money has always been a winning bet. Visa (NYSE:V) and American Express (NYSE:AXP) are two of the credit card industry’s top publicly traded companies. Let’s take a look at each of these stocks to determine which is the better play. Credit card use and spending continue to grow at a healthy clip along with strong consumer spending figures and less use of cash and checks. These companies have been outperformers and are likely to continue doing so this cycle especially as the consumer is in good shape.

This is evident through defaults being at record lows, household savings at record highs, and a strong jobs market. Betting on American consumers to keep spending more money has always been a winning bet.

Visa (V) and American Express (AXP) are two of the credit card industry’s top publicly traded companies. Let’s take a look at each of these stocks to determine which is the better play.

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