American Express (NYSE:AXP – Get Free Report) and TeraWulf (NASDAQ:WULF – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Institutional & Insider Ownership
84.3% of American Express shares are held by institutional investors. Comparatively, 62.5% of TeraWulf shares are held by institutional investors. 0.2% of American Express shares are held by company insiders. Comparatively, 19.9% of TeraWulf shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for American Express and TeraWulf, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Express | 1 | 13 | 9 | 0 | 2.35 |
| TeraWulf | 1 | 1 | 12 | 0 | 2.79 |
Profitability
This table compares American Express and TeraWulf’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Express | 15.00% | 33.49% | 3.69% |
| TeraWulf | -392.64% | -131.48% | -8.64% |
Earnings and Valuation
This table compares American Express and TeraWulf”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Express | $72.23 billion | 2.80 | $10.83 billion | $15.39 | 19.15 |
| TeraWulf | $168.46 million | 38.01 | -$661.42 million | ($1.63) | -9.26 |
American Express has higher revenue and earnings than TeraWulf. TeraWulf is trading at a lower price-to-earnings ratio than American Express, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
American Express has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, TeraWulf has a beta of 3.66, suggesting that its stock price is 266% more volatile than the S&P 500.
Summary
American Express beats TeraWulf on 8 of the 14 factors compared between the two stocks.
About American Express
American Express Company, together with its subsidiaries, operates as integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and Internationally. It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services. The company’s products and services include credit card, charge card, banking, and other payment and financing products; network services; expense management products and services; and travel and lifestyle services. It also provides 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. In addition, the company operates lounges at airports under Centurion Lounge brand name. It sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, affiliate marketing, customer referral programs, third-party service providers 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.
About TeraWulf
TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.
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