Jim Cramer Says “Capital One Discover Has Got Really Fabulous Scale”

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Capital One Financial Corporation (NYSE:COF) is one of the stocks Jim Cramer recently offered insights on. Cramer showed optimism around the company’s acquisition of Discover, as he stated:

“I still like Capital One, COF, for its acquisition of Discover, a credit card company that gives them the edge at the register, because it’s cheaper for merchants to use Capital One Discover than Visa or MasterCard. The stock sells at 10 times earnings even as the company has about 160 million cards in circulation. Block, the old Square that we talked to last night, it has around 57 million Cash App users, and it sells for about 25 times earnings. That doesn’t make sense to me.

Photo by Yiorgos Ntrahas on Unsplash

Capital One Financial Corporation (NYSE:COF) is a banking, lending, and card services firm that provides deposits, credit cards, auto loans, and commercial financing. The company also supports consumers, small businesses, and commercial clients with advisory and treasury services.

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Disclosure: None. This article is originally published at Insider Monkey.