V vs. MA, ADP, FI, PAYX, FIS, GPN, BR, JKHY, WEX, and G
Should you be buying Visa stock or one of its competitors? The main competitors of Visa include Mastercard (MA), Automatic Data Processing (ADP), Fiserv (FI), Paychex (PAYX), Fidelity National Information Services (FIS), Global Payments (GPN), Broadridge Financial Solutions (BR), Jack Henry & Associates (JKHY), WEX (WEX), and Genpact (G). These companies are all part of the "data processing & outsourced services" industry.
Visa (NYSE:V) and Mastercard (NYSE:MA) are both large-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their community ranking, institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends, media sentiment and risk.
Visa has higher revenue and earnings than Mastercard. Visa is trading at a lower price-to-earnings ratio than Mastercard, indicating that it is currently the more affordable of the two stocks.
82.2% of Visa shares are held by institutional investors. Comparatively, 97.3% of Mastercard shares are held by institutional investors. 0.2% of Visa shares are held by insiders. Comparatively, 0.1% of Mastercard shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
In the previous week, Mastercard had 4 more articles in the media than Visa. MarketBeat recorded 36 mentions for Mastercard and 32 mentions for Visa. Visa's average media sentiment score of 0.63 beat Mastercard's score of 0.58 indicating that Visa is being referred to more favorably in the media.
Visa has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Mastercard has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.
Visa has a net margin of 53.87% compared to Mastercard's net margin of 46.09%. Mastercard's return on equity of 183.70% beat Visa's return on equity.
Visa received 832 more outperform votes than Mastercard when rated by MarketBeat users. Likewise, 80.27% of users gave Visa an outperform vote while only 72.61% of users gave Mastercard an outperform vote.
Visa presently has a consensus target price of $303.76, indicating a potential upside of 11.49%. Mastercard has a consensus target price of $497.78, indicating a potential upside of 11.34%. Given Visa's higher possible upside, equities analysts clearly believe Visa is more favorable than Mastercard.
Visa pays an annual dividend of $2.08 per share and has a dividend yield of 0.8%. Mastercard pays an annual dividend of $2.64 per share and has a dividend yield of 0.6%. Visa pays out 23.2% of its earnings in the form of a dividend. Mastercard pays out 21.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Summary
Mastercard beats Visa on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding V and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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