Comparing Buffett Stocks: American Express vs. Visa
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Yahoo Finance
- American Express Holdings: As of the end of last year, Berkshire Hathaway owned nearly 152 million shares of American Express, making it the second-largest position after Apple, with a total return of 511% over the past decade, highlighting its strong brand value and market position.
- Attracting Younger Customers: American Express has successfully attracted younger customers, with millennials and Gen Z now making up the largest share of U.S. consumer spending, which is expected to provide substantial financial benefits to the company over the coming decades, further solidifying its market leadership.
- Visa's Profitability: As of December 31, 2025, Berkshire's stake in Visa was only 0.4%, yet Visa's net profit margin averaged 47.6% over the past decade, establishing it as one of the most profitable companies globally, despite its ten-year return of 325%, which is significantly lower than American Express.
- Valuation and Growth Outlook: American Express has a price-to-earnings ratio of 21.3, lower than Visa's 29.8, with analysts projecting a 14.9% annual growth in adjusted earnings per share for American Express over the next three years compared to 12.5% for Visa, indicating a potentially higher return for American Express in the next five years.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AXP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise
21 Analyst Rating
8 Buy
12 Hold
1 Sell
Moderate Buy
Current: 326.960
Low
280.00
Averages
379.06
High
425.00
Current: 326.960
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring and card network businesses offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its range of products and services includes credit and charge cards and complementary products and services, including travel, dining, lifestyle and expense management products and services; banking and other payment and financing products and services, including deposits and non-card lending; merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services, and network services. These products and services are offered through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers, and business partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Buffett Retires, Abel Takes Over as CEO of Berkshire Hathaway
- Leadership Transition: Warren Buffett officially retired on December 31, 2025, with Greg Abel taking over the day-to-day operations of Berkshire Hathaway, managing a $318 billion investment portfolio, marking a significant shift in the company's leadership.
- Portfolio Concentration: Abel inherited a portfolio where the top ten holdings account for 79% of invested assets, with Apple representing $59.4 billion or 18.7% of total investments, indicating a strong reliance on core assets.
- Capital Return Strategy: All of Berkshire's top ten holdings pay dividends, with Coca-Cola yielding an impressive 63% annually, reflecting Abel's continuation of Buffett's focus on capital returns to enhance shareholder value.
- Value Investment Principle: Abel emphasizes the importance of value in managing the portfolio, recently selling approximately 75% of Berkshire's Apple shares, indicating that maintaining the portfolio's value is a top priority in the face of high valuations.
See More
Greg Abel Takes Over After Buffett's Retirement at Berkshire Hathaway
- Portfolio Transition: Following Warren Buffett's retirement on December 31, 2025, Greg Abel inherited a $318 billion investment portfolio, facing the challenge of a highly concentrated and brand-heavy asset base while committing to uphold Buffett's investment philosophy.
- Capital Return Strategy: All of Berkshire's top ten holdings feature robust capital return programs, with each company paying dividends; Coca-Cola boasts an impressive 63% annual yield, underscoring Abel's dedication to maintaining shareholder value.
- Long-Term Holding Strategy: In his first shareholder letter, Abel classified Apple and Moody's as 'indefinite holdings,' indicating confidence in their long-term prospects, despite Berkshire having sold approximately 75% of its Apple stake in the past two years.
- Value Investment Principle: Both Abel and Buffett emphasize the importance of securing good deals, as evidenced by Berkshire's recent reductions in holdings, reflecting sensitivity to market valuations, particularly when bank stocks trade above book value.
See More
Delta Air Lines Stock Soars 75% Amid Strong Financials
- Strong Financial Performance: Delta Air Lines reported record operating revenue of $14.2 billion in Q1 2026, reflecting a nearly 10% year-over-year increase, showcasing the company's robust competitive position and recovery in market demand.
- High-Margin Revenue Growth: High-margin revenue streams accounted for 62% of total revenue, with premium offerings growing 14%, indicating a successful transformation that reduces reliance on price-sensitive economy tickets and enhances business resilience.
- Cash Flow and Debt Management: Delta generated $2.4 billion in operating cash flow in the March quarter and paid down $1.6 billion in debt, reducing adjusted net debt to $13.5 billion, demonstrating ongoing financial improvement and enhanced future profitability potential.
- Attractive Valuation: Despite the stock's rise, Delta trades at a price-to-earnings ratio of about 10.5, below industry averages, and if the company maintains its growth trajectory, it could see average annual earnings growth of 10% to 15% over the next five years, suggesting the current valuation is overly pessimistic.
See More
Delta Air Lines Reports Strong Cash Flow and Revenue Growth
- Strong Financial Performance: Delta Air Lines reported record operating revenue of $14.2 billion in Q1 2026, reflecting a nearly 10% year-over-year increase, showcasing the company's robust performance and growth potential in the airline market.
- High-Margin Revenue Growth: High-margin revenue streams accounted for 62% of total revenue, with premium offerings like Delta One and first-class services growing 14% year-over-year, while loyalty-related revenue increased by 13%, indicating a successful transformation towards a more resilient, high-margin business model.
- Robust Cash Flow Generation: The airline generated $2.4 billion in operating cash flow during the March quarter, with a strong free cash flow of $1.2 billion after capital expenditures, demonstrating effective financial management and capacity for future investments.
- Debt Reduction and Future Outlook: Delta paid down $1.6 billion in debt during the quarter, reducing adjusted net debt to $13.5 billion, and with an improving balance sheet, the company is expected to lead the industry in generating $1 billion in profit over the coming quarters.
See More
AMERICAN EXPRESS REPORTS 2.9% NET WRITE-OFF RATE FOR PRELIMINARY U.S. SMALL BUSINESS CARD MEMBER LOANS AS OF MARCH END
- Loan Write-Off Rate: The net write-off rate for small business loans is currently at 2.9%.
- Market Context: This figure reflects the financial health and risk management within the small business lending sector as of March.
See More
American Express Reports 1.7% of U.S. Small Business Card Member Loans Were 30 Days Past Due at End of March
- Loan Delinquency Rate: As of March, 1.7% of small business loans were reported as 30 days past due.
- Focus on Small Businesses: The data highlights the financial health of small businesses in the current economic climate.
See More
Buffett Retires, Abel Takes Over as CEO of Berkshire Hathaway
- Leadership Transition: Warren Buffett officially retired on December 31, 2025, with Greg Abel taking over the day-to-day operations of Berkshire Hathaway, managing a $318 billion investment portfolio, marking a significant shift in the company's leadership.
- Portfolio Concentration: Abel inherited a portfolio where the top ten holdings account for 79% of invested assets, with Apple representing $59.4 billion or 18.7% of total investments, indicating a strong reliance on core assets.
- Capital Return Strategy: All of Berkshire's top ten holdings pay dividends, with Coca-Cola yielding an impressive 63% annually, reflecting Abel's continuation of Buffett's focus on capital returns to enhance shareholder value.
- Value Investment Principle: Abel emphasizes the importance of value in managing the portfolio, recently selling approximately 75% of Berkshire's Apple shares, indicating that maintaining the portfolio's value is a top priority in the face of high valuations.
See More
Greg Abel Takes Over After Buffett's Retirement at Berkshire Hathaway
- Portfolio Transition: Following Warren Buffett's retirement on December 31, 2025, Greg Abel inherited a $318 billion investment portfolio, facing the challenge of a highly concentrated and brand-heavy asset base while committing to uphold Buffett's investment philosophy.
- Capital Return Strategy: All of Berkshire's top ten holdings feature robust capital return programs, with each company paying dividends; Coca-Cola boasts an impressive 63% annual yield, underscoring Abel's dedication to maintaining shareholder value.
- Long-Term Holding Strategy: In his first shareholder letter, Abel classified Apple and Moody's as 'indefinite holdings,' indicating confidence in their long-term prospects, despite Berkshire having sold approximately 75% of its Apple stake in the past two years.
- Value Investment Principle: Both Abel and Buffett emphasize the importance of securing good deals, as evidenced by Berkshire's recent reductions in holdings, reflecting sensitivity to market valuations, particularly when bank stocks trade above book value.
See More
Delta Air Lines Stock Soars 75% Amid Strong Financials
- Strong Financial Performance: Delta Air Lines reported record operating revenue of $14.2 billion in Q1 2026, reflecting a nearly 10% year-over-year increase, showcasing the company's robust competitive position and recovery in market demand.
- High-Margin Revenue Growth: High-margin revenue streams accounted for 62% of total revenue, with premium offerings growing 14%, indicating a successful transformation that reduces reliance on price-sensitive economy tickets and enhances business resilience.
- Cash Flow and Debt Management: Delta generated $2.4 billion in operating cash flow in the March quarter and paid down $1.6 billion in debt, reducing adjusted net debt to $13.5 billion, demonstrating ongoing financial improvement and enhanced future profitability potential.
- Attractive Valuation: Despite the stock's rise, Delta trades at a price-to-earnings ratio of about 10.5, below industry averages, and if the company maintains its growth trajectory, it could see average annual earnings growth of 10% to 15% over the next five years, suggesting the current valuation is overly pessimistic.
See More
Delta Air Lines Reports Strong Cash Flow and Revenue Growth
- Strong Financial Performance: Delta Air Lines reported record operating revenue of $14.2 billion in Q1 2026, reflecting a nearly 10% year-over-year increase, showcasing the company's robust performance and growth potential in the airline market.
- High-Margin Revenue Growth: High-margin revenue streams accounted for 62% of total revenue, with premium offerings like Delta One and first-class services growing 14% year-over-year, while loyalty-related revenue increased by 13%, indicating a successful transformation towards a more resilient, high-margin business model.
- Robust Cash Flow Generation: The airline generated $2.4 billion in operating cash flow during the March quarter, with a strong free cash flow of $1.2 billion after capital expenditures, demonstrating effective financial management and capacity for future investments.
- Debt Reduction and Future Outlook: Delta paid down $1.6 billion in debt during the quarter, reducing adjusted net debt to $13.5 billion, and with an improving balance sheet, the company is expected to lead the industry in generating $1 billion in profit over the coming quarters.
See More
AMERICAN EXPRESS REPORTS 2.9% NET WRITE-OFF RATE FOR PRELIMINARY U.S. SMALL BUSINESS CARD MEMBER LOANS AS OF MARCH END
- Loan Write-Off Rate: The net write-off rate for small business loans is currently at 2.9%.
- Market Context: This figure reflects the financial health and risk management within the small business lending sector as of March.
See More
American Express Reports 1.7% of U.S. Small Business Card Member Loans Were 30 Days Past Due at End of March
- Loan Delinquency Rate: As of March, 1.7% of small business loans were reported as 30 days past due.
- Focus on Small Businesses: The data highlights the financial health of small businesses in the current economic climate.
See More
