AMERICAN EXPRESS CO vs PennyMac Financial Services, Inc., two Mortgage Finance stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
PennyMac trades at 9.14 times earnings, well under half of American Express' 21.3, for a mortgage franchise earning a higher net margin, 23.5% against 15.1%. The discount is the business model: PennyMac's earnings ride origination cycles and servicing marks, and its negative 87.9% free-cash figure is loan-flow accounting rather than distress, where Amex's 6.1% yield is real spend economics. Returns on equity favor Amex, 33% against 11.7%, leverage similar at 1.4-1.8 turns. Both pay dividends near 1-1.4%. The market pays double per dollar for earnings that arrive every quarter over earnings that arrive with the rate cycle; the margin table says the cyclical dollars are currently fatter.
Comparison updated 2026-07-10.
| Metric | AXP | PFSI |
|---|---|---|
| Price | $340.48 | $86.05 |
| Market cap | $233.6B | $4.6B |
| Sector | Financial Services | Financial Services |
| Stage | Mature | Growth |
| P/E | 21.3 | 9.1 |
| P/B | 6.87 | 1.07 |
| P/S | 3.15 | 2.15 |
| EV/EBITDA | — | 787.9 |
| Revenue growth | +10.5% | +26.0% |
| Net margin | 15.1% | 23.5% |
| Return on equity | 33.0% | 11.7% |
| Return on assets | 3.6% | 1.6% |
| Dividend yield | 1.0% | 1.4% |
| Debt / equity | 1.78 | 1.44 |
| Altman Z (solvency) | 0.87 | 0.36 |
| Piotroski F (quality) | 7 / 9 | 5 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.