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.
Visa (NYSE:V) and Mastercard (NYSE:MA) are both large-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation, dividends, media sentiment and community ranking.
In the previous week, Mastercard had 35 more articles in the media than Visa. MarketBeat recorded 69 mentions for Mastercard and 34 mentions for Visa. Visa's average media sentiment score of 0.78 beat Mastercard's score of 0.28 indicating that Visa is being referred to more favorably in the media.
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 0.8%. 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.
Visa has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Mastercard has a beta of 1.08, suggesting that its share 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, large money managers and endowments believe a stock will outperform the market over the long term.
Visa received 832 more outperform votes than Mastercard when rated by MarketBeat users. Likewise, 80.26% of users gave Visa an outperform vote while only 72.59% of users gave Mastercard an outperform vote.
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 currently has a consensus price target of $303.00, suggesting a potential upside of 9.39%. Mastercard has a consensus price target of $496.27, suggesting a potential upside of 9.40%. Given Mastercard's stronger consensus rating and higher probable upside, analysts clearly believe Mastercard is more favorable than Visa.
Summary
Mastercard beats Visa on 13 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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