Which Credit Card Stock is a Better Investment? By StockNews
The economic recovery and rising consumer spending and are driving the credit card industry’s growth. Therefore, credit card giants American Express (AXP) and Discover Financial (DFS) should benefit. What stock do you think is the best buy? Let’s find out.American Express Company (NYSE:) and Discover Financial Services (NYSE:) are well-known financial services companies that offer credit cards globally. AXP sells travel-related services, as well as charge and credit payments cards. AXP’s services include point-of sale marketing, merchant acquisition, processing and fraud prevention. It also designs and operates customer loyalty programs. DFS is an international digital banking and payments services company. DFS issues credit cards, provides student, personal, and savings loans, as well as manages automated bank machine networks.
Credit card transactions are on the rise due to rising consumer spending and economic recovery. Credit card companies are increasingly collaborating with online platforms in order to increase their customer base. By 2025, the global credit card market will grow by 1.1% to $107.69 trillion. AXP shares and DFS both stand to benefit.
DFS shares rose 107.5% while AXP shares gained 48.7% over the last year. DFS is a clear winner with 17.7% price gains versus AXP’s 7.4% returns in terms of their past six months’ performance too. Which stock is better? Let’s find out.
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