V vs. MA, ADP, FI, PAYX, FIS, GPN, BR, JKHY, WEX, and G
Should you be buying Visa stock or one of its competitors? The main competitors of Visa include Mastercard (MA), 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.
Mastercard (NYSE:MA) and Visa (NYSE:V) are both large-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their risk, community ranking, profitability, earnings, dividends, institutional ownership, media sentiment, analyst recommendations and valuation.
Mastercard pays an annual dividend of $2.64 per share and has a dividend yield of 0.6%. Visa pays an annual dividend of $2.08 per share and has a dividend yield of 0.8%. Mastercard pays out 21.0% of its earnings in the form of a dividend. Visa pays out 23.2% 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 12 consecutive years and Visa has raised its dividend for 16 consecutive years. Visa is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
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 news 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.
Mastercard presently has a consensus price target of $497.78, suggesting a potential upside of 11.34%. Visa has a consensus price target of $303.76, suggesting a potential upside of 11.49%. Given Mastercard's higher possible upside, analysts clearly believe Visa is more favorable than Mastercard.
Mastercard has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Visa has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.
97.3% of Mastercard shares are owned by institutional investors. Comparatively, 82.2% of Visa shares are owned by institutional investors. 0.1% of Mastercard shares are owned by insiders. Comparatively, 0.2% of Visa shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
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 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.
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 V 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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