Contrasting Mastercard (MA) & The Competition
Mastercard (NYSE: MA) is one of 119 publicly-traded companies in the “Business services, not elsewhere classified” industry, but how does it compare to its competitors? We will compare Mastercard to related businesses based on the strength of its analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Volatility and Risk
Mastercard has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Mastercard’s competitors have a beta of 0.67, meaning that their average stock price is 33% less volatile than the S&P 500.
Mastercard pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. Mastercard pays out 21.8% 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. Mastercard has raised its dividend for 6 consecutive years.
This table compares Mastercard and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Mastercard and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Mastercard||$12.50 billion||$3.92 billion||42.00|
|Mastercard Competitors||$2.54 billion||$351.63 million||9.98|
Mastercard has higher revenue and earnings than its competitors. Mastercard is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Insider & Institutional Ownership
75.8% of Mastercard shares are owned by institutional investors. Comparatively, 63.4% of shares of all “Business services, not elsewhere classified” companies are owned by institutional investors. 0.3% of Mastercard shares are owned by company insiders. Comparatively, 15.7% of shares of all “Business services, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of current ratings for Mastercard and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mastercard presently has a consensus price target of $184.72, suggesting a potential downside of 3.98%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 5.87%. Given Mastercard’s competitors higher possible upside, analysts clearly believe Mastercard has less favorable growth aspects than its competitors.
Mastercard beats its competitors on 11 of the 15 factors compared.
Mastercard Company Profile
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. The company also offers value-added services, such as safety and security products, loyalty and reward programs, information and consulting services, issuer and acquirer processing solutions, and payment and mobile gateways. In addition, it provides various integrated products and services for account holders, merchants, financial institutions, businesses, governments, and other organizations; programs that enable issuers to provide consumers with cards to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid payment programs and management services; and commercial payment products and solutions. Further, the company provides products and services to prevent, detect, and respond to fraud and cyber-attacks, and ensure the safety of transactions. It offers payment solutions and services under the MasterCard, Maestro, and Cirrus brands. Mastercard Incorporated has a strategic partnership with Bahrain Commercial Facilities Company BSC. The company was founded in 1966 and is headquartered in Purchase, New York.
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