MA vs. V, ACN, SPGI, FI, FIS, GPN, BR, WEX, MMS, and EXLS
Should you be buying Mastercard stock or one of its competitors? The main competitors of Mastercard include Visa (V), 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.
Visa (NYSE:V) and Mastercard (NYSE:MA) are both large-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, media sentiment, dividends, community ranking, risk, profitability, valuation and earnings.
Visa has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Mastercard has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
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 company insiders. Comparatively, 0.1% of Mastercard shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
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 22.3% 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 increased its dividend for 16 consecutive years and Mastercard has increased its dividend for 12 consecutive years. Visa is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Visa currently has a consensus price target of $303.00, suggesting a potential upside of 13.22%. Mastercard has a consensus price target of $493.55, suggesting a potential upside of 11.89%. Given Mastercard's higher possible upside, analysts clearly believe Visa is more favorable than Mastercard.
In the previous week, Visa had 6 more articles in the media than Mastercard. MarketBeat recorded 61 mentions for Visa and 55 mentions for Mastercard. Visa's average media sentiment score of 0.57 beat Mastercard's score of 0.43 indicating that Mastercard is being referred to more favorably in the news media.
Visa received 833 more outperform votes than Mastercard when rated by MarketBeat users. Likewise, 80.26% of users gave Visa an outperform vote while only 72.58% of users gave Mastercard an outperform vote.
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 has a net margin of 53.87% compared to Visa's net margin of 44.60%. Visa's return on equity of 191.22% beat Mastercard's return on equity.
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 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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