V vs. MA, ACN, SPGI, FI, FIS, GPN, BR, WEX, MMS, and EXLS
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), Fiserv (FI), Fidelity National Information Services (FIS), Global Payments (GPN), Broadridge Financial Solutions (BR), WEX (WEX), Maximus (MMS), and ExlService (EXLS). These companies are all part of the "business services" sector.
Visa (NYSE:V) and Mastercard (NYSE:MA) are both large-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, media sentiment, profitability, earnings, valuation and community ranking.
Visa has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Mastercard has a beta of 1.08, suggesting 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 22.3% 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 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.
In the previous week, Visa had 43 more articles in the media than Mastercard. MarketBeat recorded 78 mentions for Visa and 35 mentions for Mastercard. Visa's average media sentiment score of 0.55 beat Mastercard's score of 0.50 indicating that Visa is being referred to more favorably in the media.
Visa presently has a consensus price target of $302.58, indicating a potential upside of 10.22%. Mastercard has a consensus price target of $490.23, indicating a potential upside of 6.01%. Given Visa's higher probable upside, equities research analysts clearly believe Visa is more favorable than Mastercard.
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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Visa received 836 more outperform votes than Mastercard when rated by MarketBeat users. Likewise, 80.29% of users gave Visa an outperform vote while only 72.54% of users gave Mastercard an outperform vote.
Visa has a net margin of 53.87% compared to Mastercard's net margin of 44.60%. Mastercard's return on equity of 191.22% beat Visa's return on equity.
Summary
Mastercard beats Visa on 11 of the 21 factors compared between the two stocks.
Get Visa News Delivered to You Automatically
Sign up to receive the latest news and ratings for V and its competitors with MarketBeat's FREE daily newsletter.
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.
Skip Chart
Related Companies and Tools