Business Analysis of Capital One Financial

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Capital One Financial

CAPITAL ONE FINANCIAL

Business Overview

Capital One Financial Corporation operates as the bank holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and services in the United States, the United Kingdom, and Canada. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company offers non-interest-bearing and interest-bearing deposits, such as checking accounts, money market deposit accounts, negotiable order of withdrawals, savings deposits, and time deposits. It also provides credit card loans; auto, home, and retail banking loans; and commercial and multifamily real estate, commercial and industrial, and small-ticket commercial real estate loans. In addition, the company offers credit and debit card products; online direct banking services; and treasury management and depository services. It serves consumers, small businesses, and commercial clients through the Internet and mobile banking, as well as through ATMs and branches located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and the District of Columbia. Capital One Financial Corporation was founded in 1988 and is headquartered in McLean, Virginia.

Capital One Financial

Capital One Financial


R&P Rank: 144
Sector: Financial Services
Industry:Consumer Finance
H.Q Location:Virginia
Website: www.capitalone.com
Company Address:
1680 CAPITAL ONE DRIVE, SUITE 1400, MCLEAN VA 22102
Ph:703-720-1000

Business Analysis of Capital One Financial

The Financial Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Capital One Financial compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Capital One Financial to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Capital One Financial with an interactive chart.

  1. Revenue Growth: Capital One Financial reported a revenue growth of 0.9% year-on-year during 2016. Consumer Finance Industry grew at 5.0% in the same period
  2. COGS share of Revenues: Capital One Financial COGS share of Revenues details are not available because either company does not share the data or we do not have it
  3. R&D share of Revenues: Capital One Financial R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Capital One Financial spent 58.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Consumer Finance industry average SG&A spending in the same period was 43.3%
  5. Inventory share of Revenues: Capital One Financial Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Capital One Financial invested 1.7% of its total revenues on Accounts Payable (A/P) Consumer Finance industry average Accounts Payable investment in the same period was 16.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Capital One Financial invested 7.1% of its total revenues on Accounts Receivable (A/R). Consumer Finance industry average Accounts Receivable investment in the same period was 64.7%
  8. PP&E share of Revenues: As a percentage of revenue, Capital One Financial invested 19.3% of its total revenues on Property, Plants, and Equipments (PP&E). Consumer Finance industry average PPE investment in the same period was 25.3%
  9. Intangibles share of Revenues: As a percentage of revenue, Capital One Financial invested 76.2% of its total revenues on Intangibles. Consumer Finance industry average Intangibles investment in the same period was 71.0%
  10. Net Margins: Capital One Financial Net Margins in the year 2016 were 19.7%. Consumer Finance industry average Net Margins in the same period were 22.9%

Sector and Industry Association of Capital One Financial

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Capital One Financial is associated with Financials Sector Group, Financial Services Sector, and Consumer Finance Industry.

Financial Services sector is comprised of the following industries: Investment Services; Consumer Finance; Payment and Transaction Processing Services; Financial News, Research and Data. The definitions for each of the industries is as follows:

  • Investment Services industry includes investment banking companies, asset management companies, securities brokers and dealers, online brokers, and security/commodity exchanges.
  • Consumer Finance industry includes companies providing credit services and mortgage finance services.
  • Payment and Transaction Processing Services industry includes companies providing financial news, research, and data services.
  • Financial News, Research and Data industry includes companies providing payments and transaction processing services.

Industry Ranking of Capital One Financial

With $19 billion revenues, Capital One Financial ranked number 2 of all the companies in the US Consumer Finance industry. There were a total of 48 public companies in the US Consumer Finance industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Consumer Finance industry by revenues during 2016 were:

  1. American Express ($30.1 billion)
  2. Capital One Financial ($19 billion)
  3. Visa ($15.1 billion)
  4. Mastercard ($10.8 billion)
  5. Discover Financial Services ($7.2 billion)
  6. Synchrony Financial ($7 billion)
  7. Ally Financial ($5.4 billion)
  8. Equifax ($3.1 billion)
  9. Santander Consumer USA Holdings ($2.3 billion)
  10. CIT Group Inc ($2.1 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Capital One Financialand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of capital-one-financial

American Express (AXP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

American Express Co with $30 billion revenues in the year 2016 was the number 1 Consumer Finance company. Read this report to know the top competitors of American Express and identify growth and cost optimization opportunities of American Express

Visa (V) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Visa Inc. with $15 billion revenues in the year 2016 was the number 3 Consumer Finance company. Read this report to know the top competitors of Visa and identify growth and cost optimization opportunities of Visa

Mastercard (MA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Mastercard Inc with $11 billion revenues in the year 2016 was the number 4 Consumer Finance company. Read this report to know the top competitors of Mastercard and identify growth and cost optimization opportunities of Mastercard

Discover Financial Services (DFS) Business Analysis – Analyze Historical Performance, Strategic...

Discover Financial Services with $7 billion revenues in the year 2016 was the number 5 Consumer Finance company. Read this report to know the top competitors of Discover Financial Services and identify growth and cost optimization opportunities of Discover Financial Services

Synchrony Financial (SYF) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Synchrony Financial with $7 billion revenues in the year 2016 was the number 6 Consumer Finance company. Read this report to know the top competitors of Synchrony Financial and identify growth and cost optimization opportunities of Synchrony Financial

Ally Financial (ALLY) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Ally Financial Inc. with $5 billion revenues in the year 2016 was the number 7 Consumer Finance company. Read this report to know the top competitors of Ally Financial and identify growth and cost optimization opportunities of Ally Financial

Revenues Analysis

Capital One Financial (COF) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of Capital One Financial Corp (COF) from 2012 to 2016. Capital One Financial generated a total of $19 billion revenues during 2016. Capital One Financial reported a revenue growth of 0.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Capital One Financial (COF) Revenues And Revenue Growth From 2002 To...

This report provides the last fifteen years revenues and revenue growth of Capital One Financial Corp (COF) from 2002 to 2016. Capital One Financial generated a total of $19 billion revenues during 2016. Capital One Financial reported a revenue growth of 0.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Capital One Financial (COF) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of Capital One Financial Corp (COF) revenue growth with Consumer Finance industry growth during the last five years from 2012 to 2016. Capital One Financial reported a revenue growth of 0.9% year-over-year during 2016. The Consumer Finance industry growth was 5% year-over-year during 2016. Capital One Financial growth was slower than the industry during 2016.