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 better stock? We will contrast the two businesses based on the strength of their dividends, media sentiment, valuation, risk, earnings, profitability, institutional ownership, analyst recommendations and community ranking.
In the previous week, Mastercard had 5 more articles in the media than Visa. MarketBeat recorded 38 mentions for Mastercard and 33 mentions for Visa. Mastercard's average media sentiment score of 0.63 beat Visa's score of 0.52 indicating that Visa is being referred to more favorably in the media.
Visa has a net margin of 53.87% compared to Visa's net margin of 46.09%. Visa's return on equity of 183.70% beat Mastercard's return on equity.
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 presently has a consensus price target of $303.76, suggesting a potential upside of 11.48%. Mastercard has a consensus price target of $497.78, suggesting a potential upside of 11.39%. Given Mastercard's higher probable upside, equities research analysts plainly believe Visa is more favorable than Mastercard.
Visa received 832 more outperform votes than Mastercard when rated by MarketBeat users. Likewise, 80.27% of users gave Visa an outperform vote while only 72.61% of users gave Mastercard an outperform vote.
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 company is poised for long-term growth.
Visa has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Mastercard has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
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 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.
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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