MA vs. V, ADP, FI, PAYX, FIS, GPN, BR, JKHY, WEX, and G
Should you be buying Mastercard stock or one of its competitors? The main competitors of Mastercard include Visa (V), 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 better stock? We will contrast the two companies based on the strength of their media sentiment, institutional ownership, analyst recommendations, risk, profitability, valuation, earnings, community ranking and dividends.
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.
Visa currently has a consensus price target of $303.76, suggesting a potential upside of 9.01%. Mastercard has a consensus price target of $497.78, suggesting a potential upside of 10.65%. Given Visa's stronger consensus rating and higher probable upside, analysts plainly believe Mastercard is more favorable than Visa.
In the previous week, Mastercard had 2 more articles in the media than Visa. MarketBeat recorded 28 mentions for Mastercard and 26 mentions for Visa. Mastercard's average media sentiment score of 0.96 beat Visa's score of 0.81 indicating that Visa is being referred to more favorably in the media.
Visa has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Mastercard has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.
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.
82.2% of Visa shares are owned by institutional investors. Comparatively, 97.3% of Mastercard shares are owned by institutional investors. 0.2% of Visa shares are owned by company insiders. Comparatively, 0.1% of Mastercard shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
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.
Visa pays an annual dividend of $2.08 per share and has a dividend yield of 0.7%. 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. Visa has raised its dividend for 16 consecutive years and Mastercard has raised its dividend for 12 consecutive years. Visa is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Mastercard beats Visa on 13 of the 22 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MA 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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