MA vs. V, ACN, SPGI, ARM, FI, FIS, GPN, BR, WEX, and MMS
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), WEX (WEX), and Maximus (MMS). These companies are all part of the "business services" sector.
Mastercard (NYSE:MA) and Visa (NYSE:V) are both large-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, community ranking, profitability, media sentiment, earnings, risk and valuation.
Visa has a net margin of 53.87% compared to Mastercard's net margin of 46.09%. Mastercard's return on equity of 183.70% beat Visa's return on equity.
Mastercard presently has a consensus price target of $497.78, suggesting a potential upside of 8.69%. Visa has a consensus price target of $303.76, suggesting a potential upside of 7.90%. Given Mastercard's stronger consensus rating and higher probable upside, research analysts plainly believe Mastercard is more favorable than Visa.
In the previous week, Mastercard had 19 more articles in the media than Visa. MarketBeat recorded 50 mentions for Mastercard and 31 mentions for Visa. Visa's average media sentiment score of 0.78 beat Mastercard's score of 0.53 indicating that Visa is being referred to more favorably in the news media.
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.
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 0.7%. 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 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.
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.
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 company insiders. Comparatively, 0.2% of Visa shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Mastercard beats Visa on 13 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.
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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