American Express offers higher earnings growth and lower valuation than Visa

American Express has a price-to-earnings ratio of 21.3, which is lower than Visa's 29.8 multiple. Analysts expect American Express adjusted earnings per share to grow at a compound annual rate of 14.9% over the next three years, while the consensus view for Visa is 12.5%. This valuation gap exists because American Express is directly exposed to credit risk, whereas Visa operates only the payments infrastructure. American Express maintains industry-leading charge-off rates by targeting premium customers with higher spending power. The company also increased Platinum card annual fees by $200 in 2025 and Gold card fees by $75 in 2024. Berkshire Hathaway holds 152 million shares of American Express and a 0.4% stake in Visa.