According to Investopedia, a value stock is a stock that tends to trade at a lower price relative to its fundamentals (i.e. dividends, earnings, sales, etc.) and thus considered undervalued by a value investor. When looking into credit card companies, I find that Capital One (NYSE: COF) looks like a potential value stock. Capital One Financial Corp. is a financial holding company operating through its subsidiaries, which include Capital One, NA and Capital One Bank USA, NA. It offers financial products and services to consumers, small businesses and commercial clients. The company operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. With the additional business from acquisitions, including the U.S. credit-card business of HSBC Holdings PLC (HBC, HSBA.LN) and ING Direct, the U.S. online-banking business of ING Group NV (ING, INGA.AE), Capital One delivered high growth on both top and bottom lines. Capital One’s earnings growth this year is 11.15% and its earnings growth for the next 5 years is 8%. The company is trading with the low P/E at 9.3. Starting from May, Capital One has increased its quarterly dividend from $.005 per share to $0.30 per share (1.74% yield). For the latest period, the company reported a profit of $1.1 billion, or $1.87 per share, up from $92 million, or 16 cents a share, a year earlier. Revenue rose 12% to $5.64 billion. As a result, value investors may want to consider Capital One as a potential value stock and see if the company can maintain its profitable business model in the future. What do you think?