V vs. MA, ACN, SPGI, FI, FIS, GPN, BR, WEX, MMS, and EXLS
Should you be buying Visa stock or one of its competitors? The main competitors of Visa include Mastercard (MA), Accenture (ACN), S&P Global (SPGI), Fiserv (FI), Fidelity National Information Services (FIS), Global Payments (GPN), Broadridge Financial Solutions (BR), WEX (WEX), Maximus (MMS), and ExlService (EXLS). These companies are all part of the "business services" sector.
Mastercard (NYSE:MA) and Visa (NYSE:V) are both large-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, community ranking, profitability, dividends, earnings and media sentiment.
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.
Mastercard currently has a consensus target price of $497.78, suggesting a potential upside of 11.24%. Visa has a consensus target price of $303.76, suggesting a potential upside of 12.21%. Given Mastercard's higher possible upside, analysts clearly believe Visa is more favorable than Mastercard.
Visa has a net margin of 53.87% compared to Visa's net margin of 46.09%. Visa's return on equity of 183.70% beat Mastercard's return on equity.
Mastercard has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Visa has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.
97.3% of Mastercard shares are held by institutional investors. Comparatively, 82.2% of Visa shares are held by institutional investors. 0.1% of Mastercard shares are held by company insiders. Comparatively, 0.2% of Visa shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
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.
Mastercard pays an annual dividend of $2.64 per share and has a dividend yield of 0.6%. Visa pays an annual dividend of $2.08 per share and has a dividend yield of 0.8%. Mastercard pays out 21.0% of its earnings in the form of a dividend. Visa pays out 23.2% 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. Mastercard has increased its dividend for 12 consecutive years and Visa has increased its dividend for 16 consecutive years. Visa is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, Mastercard had 16 more articles in the media than Visa. MarketBeat recorded 39 mentions for Mastercard and 23 mentions for Visa. Mastercard's average media sentiment score of 0.72 beat Visa's score of 0.42 indicating that Visa is being referred to more favorably in the news media.
Summary
Mastercard beats Visa on 12 of the 22 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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