MA vs. V, ACN, SPGI, ARM, FI, FIS, GPN, BR, FLT, and WEX
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), ARM (ARM), Fiserv (FI), Fidelity National Information Services (FIS), Global Payments (GPN), Broadridge Financial Solutions (BR), FLEETCOR Technologies (FLT), and WEX (WEX). 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 business? We will compare the two companies based on the strength of their community ranking, valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and media sentiment.
Visa has a beta of 0.96, suggesting that its share price is 4% 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.
Visa currently has a consensus target price of $293.30, indicating a potential upside of 2.72%. Mastercard has a consensus target price of $476.35, indicating a potential downside of 0.57%. Given Mastercard's higher probable upside, research analysts clearly believe Visa is more favorable than Mastercard.
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 23.9% 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 raised its dividend for 16 consecutive years and Mastercard has raised its dividend for 2 consecutive years. Visa is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
81.4% of Visa shares are owned by institutional investors. Comparatively, 74.9% of Mastercard shares are owned by institutional investors. 0.2% of Visa shares are owned by insiders. Comparatively, 0.1% of Mastercard shares are owned 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.
In the previous week, Mastercard had 14 more articles in the media than Visa. MarketBeat recorded 29 mentions for Mastercard and 15 mentions for Visa. Mastercard's average media sentiment score of 0.80 beat Visa's score of 0.51 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 has a net margin of 53.92% compared to Visa's net margin of 44.60%. Visa's return on equity of 191.22% beat Mastercard's return on equity.
Visa received 832 more outperform votes than Mastercard when rated by MarketBeat users. Likewise, 80.28% of users gave Visa an outperform vote while only 72.46% of users gave Mastercard an outperform vote.
Summary
Visa and Mastercard tied by winning 11 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.
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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