Head to Head Survey: Visa (V) vs. Its Peers

Visa (NYSE: V) is one of 118 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 companies based on the strength of its dividends, profitability, institutional ownership, earnings, analyst recommendations, risk and valuation.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Visa $18.36 billion $6.70 billion 37.72
Visa Competitors $2.57 billion $354.95 million 9.63

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 and Insider Ownership

80.1% of Visa shares are held by institutional investors. Comparatively, 64.1% of shares of all “Business services, not elsewhere classified” companies are held by institutional investors. 0.1% of Visa shares are held by company insiders. Comparatively, 14.2% of shares of all “Business services, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Visa and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Visa 0 3 28 0 2.90
Visa Competitors 749 3694 7123 294 2.59

Visa presently has a consensus price target of $137.77, suggesting a potential upside of 4.94%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 5.25%. Given Visa’s peers higher possible upside, analysts clearly believe Visa has less favorable growth aspects 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 25.8% of their earnings in the form of a dividend. Visa has raised its dividend for 9 consecutive years.

Volatility & Risk

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

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 4.96% 3.77% 0.73%

Summary

Visa beats its peers on 11 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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