Visa (V) & Its Peers Head to Head Analysis

Visa (NYSE: V) is one of 118 public companies in the “Business services, not elsewhere classified” industry, but how does it compare to its rivals? We will compare Visa to related businesses based on the strength of its dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Risk & Volatility

Visa has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Visa’s rivals have a beta of 0.68, suggesting that their average stock price is 32% less volatile than the S&P 500.



Profitability

This table compares Visa and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Visa 48.18% 33.90% 13.93%
Visa Competitors 5.12% 4.95% 1.20%

Valuation & Earnings

This table compares Visa and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Visa $18.36 billion $6.70 billion 37.55
Visa Competitors $2.57 billion $354.95 million 9.63

Visa has higher revenue and earnings than its rivals. Visa is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Visa pays an annual dividend of $0.84 per share and has a dividend yield of 0.6%. Visa pays out 24.1% of its earnings in the form of a dividend. As a group, “Business services, not elsewhere classified” companies pay a dividend yield of 1.1% and pay out 27.2% of their earnings in the form of a dividend. Visa has raised its dividend for 9 consecutive years.

Insider and Institutional Ownership

80.1% of Visa shares are owned by institutional investors. Comparatively, 64.4% of shares of all “Business services, not elsewhere classified” companies are owned by institutional investors. 0.1% of Visa shares are owned by insiders. Comparatively, 14.8% of shares of all “Business services, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Visa and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Visa 0 3 28 0 2.90
Visa Competitors 746 3689 7107 291 2.59

Visa presently has a consensus price target of $137.77, indicating a potential upside of 5.44%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 5.80%. Given Visa’s rivals higher probable upside, analysts clearly believe Visa has less favorable growth aspects than its rivals.

Summary

Visa beats its rivals on 11 of the 15 factors compared.

About Visa

Visa Inc. operates as a payments technology company worldwide. The company facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions; and offers fraud protection for account holders and assured payment for merchants. The company also offers gateway services for merchants to accept, process, and reconcile payments; manage fraud; and safeguard payment security online, as well as processing services for participating issuers of visa debit, prepaid, and ATM payment products. In addition, it provides digital products, including Visa Checkout that offers consumers an expedited, and secure payment experience for online transactions; and Visa Direct, a push payment product platform, that allows businesses, governments, and consumers to use the Visa network to transfer funds from an originating account to another via a debit, prepaid, or credit card number, as well as Visa token service that replaces the card account numbers from the transaction with a token. Further the company offers corporate (travel) and purchasing card products, as well as value-added services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brands. Visa Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

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