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 superior business? We will compare the two companies based on the strength of their analyst recommendations, community ranking, profitability, institutional ownership, valuation, dividends, risk, media sentiment and earnings.
Visa received 841 more outperform votes than Mastercard when rated by MarketBeat users. Likewise, 80.32% of users gave Visa an outperform vote while only 72.60% of users gave Mastercard an outperform vote.
Visa currently has a consensus target price of $307.25, indicating a potential upside of 18.42%. Mastercard has a consensus target price of $498.13, indicating a potential upside of 13.68%. Given Mastercard's higher possible upside, equities research analysts clearly believe Visa is more favorable than Mastercard.
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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
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 1.09, meaning that its stock price is 9% more volatile than the S&P 500.
In the previous week, Visa had 39 more articles in the media than Mastercard. MarketBeat recorded 62 mentions for Visa and 23 mentions for Mastercard. Visa's average media sentiment score of 0.58 beat Mastercard's score of 0.39 indicating that Mastercard is being referred to more favorably in the news 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 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.
Visa has a net margin of 54.72% compared to Visa's net margin of 46.09%. Visa's return on equity of 183.70% beat Mastercard's return on equity.
Summary
Mastercard beats Visa on 11 of the 21 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.
Skip ChartThis 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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