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.
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, earnings, community ranking, media sentiment, profitability, dividends, valuation, analyst recommendations and institutional ownership.
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.
In the previous week, Mastercard had 3 more articles in the media than Visa. MarketBeat recorded 35 mentions for Mastercard and 32 mentions for Visa. Visa's average media sentiment score of 0.63 beat Mastercard's score of 0.58 indicating that Visa is being referred to more favorably in the news media.
Mastercard currently has a consensus target price of $497.78, indicating a potential upside of 11.34%. Visa has a consensus target price of $303.76, indicating a potential upside of 11.49%. Given Visa's higher probable upside, analysts plainly believe Visa is more favorable than Mastercard.
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 $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.
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.
97.3% of Mastercard shares are held by institutional investors. Comparatively, 82.2% of Visa shares are held by institutional investors. 0.1% of Mastercard shares are held by insiders. Comparatively, 0.2% of Visa shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Mastercard has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Visa has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.
Summary
Mastercard beats Visa on 12 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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