Visa (NYSE:V) Vs. MA, ACN, SPGI, ADP, WM, FISV, FIS, SQ, MRVL, and TRI
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), Automatic Data Processing (ADP), Waste Management (WM), Fiserv (FISV), Fidelity National Information Services (FIS), Square (SQ), Marvell Technology (MRVL), and Thomson Reuters (TRI). These companies are all part of the "business services" sector.
Visa vs.
Mastercard (NYSE:MA) and Visa (NYSE:V) are both large-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, media sentiment, community ranking, risk, profitability, valuation and earnings.
In the previous week, Mastercard had 34 more articles in the media than Visa. MarketBeat recorded 42 mentions for Mastercard and 8 mentions for Visa. Visa's average media sentiment score of 0.44 beat Mastercard's score of 0.24 indicating that Visa is being referred to more favorably in the news media.
Mastercard has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Visa has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
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.
Mastercard pays an annual dividend of $1.96 per share and has a dividend yield of 0.6%. Visa pays an annual dividend of $1.50 per share and has a dividend yield of 0.8%. Mastercard pays out 20.4% of its earnings in the form of a dividend. Visa pays out 23.6% 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. Mastercard has raised its dividend for 11 consecutive years and Visa has raised its dividend for 14 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 51.10% compared to Mastercard's net margin of 47.70%. Mastercard's return on equity of 133.72% beat Visa's return on equity.
74.9% of Mastercard shares are held by institutional investors. Comparatively, 80.8% of Visa shares are held by institutional investors. 0.3% of Mastercard shares are held by insiders. Comparatively, 0.2% of Visa shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Visa received 836 more outperform votes than Mastercard when rated by MarketBeat users. Likewise, 82.04% of users gave Visa an outperform vote while only 74.17% of users gave Mastercard an outperform vote.
Mastercard presently has a consensus target price of $422.94, indicating a potential upside of 26.65%. Visa has a consensus target price of $267.44, indicating a potential upside of 35.22%. Given Visa's higher possible upside, analysts plainly believe Visa is more favorable than Mastercard.
Summary
Visa beats Mastercard on 10 of the 19 factors compared between the two stocks.
New MarketBeat Followers Over Time
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.
Media Sentiment Over Time
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.
Visa (NYSE:V) vs. Its Competitors
