Visa (V) versus Its Peers Head to Head Contrast

Visa (NYSE: V) is one of 119 publicly-traded companies in the “Business services, not elsewhere classified” industry, but how does it compare to its peers? We will compare Visa to related businesses based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Visa $18.36 billion $6.70 billion 37.34
Visa Competitors $2.54 billion $351.63 million 9.40

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

Institutional & Insider Ownership

82.1% of Visa shares are held by institutional investors. Comparatively, 62.1% of shares of all “Business services, not elsewhere classified” companies are held by institutional investors. 0.1% of Visa shares are held by insiders. Comparatively, 15.5% of shares of all “Business services, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Visa and its peers’ 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 5.09% 3.64% 0.82%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Visa and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Visa 0 3 28 0 2.90
Visa Competitors 743 3683 7097 291 2.59

Visa presently has a consensus target price of $137.66, indicating a potential upside of 5.95%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 5.75%. Given Visa’s stronger consensus rating and higher possible upside, research analysts plainly believe Visa is more favorable than its peers.

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 1.0% and pay out 27.2% of their earnings in the form of a dividend. Visa has increased its dividend for 9 consecutive years.

Risk & Volatility

Visa has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Visa’s peers have a beta of 0.67, meaning that their average stock price is 33% less volatile than the S&P 500.

Summary

Visa beats its peers on 12 of the 15 factors compared.

Visa Company Profile

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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