Mastercard (NYSE: MA) and DCC (OTCMKTS:DCCPF) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Profitability

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This table compares Mastercard and DCC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mastercard 31.33% 83.57% 24.33%
DCC N/A N/A N/A

Insider & Institutional Ownership

76.0% of Mastercard shares are held by institutional investors. 0.3% of Mastercard shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Mastercard has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, DCC has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Mastercard and DCC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mastercard 0 2 29 0 2.94
DCC 0 0 0 0 N/A

Mastercard currently has a consensus target price of $176.76, indicating a potential downside of 2.21%. Given Mastercard’s higher possible upside, equities research analysts plainly believe Mastercard is more favorable than DCC.

Valuation and Earnings

This table compares Mastercard and DCC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mastercard $12.50 billion 15.21 $3.92 billion $3.65 49.52
DCC N/A N/A N/A N/A N/A

Mastercard has higher revenue and earnings than DCC.

Dividends

Mastercard pays an annual dividend of $1.00 per share and has a dividend yield of 0.6%. DCC does not pay a dividend. Mastercard pays out 27.4% of its earnings in the form of a dividend. Mastercard has raised its dividend for 6 consecutive years.

Summary

Mastercard beats DCC on 10 of the 12 factors compared between the two stocks.

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.

DCC Company Profile

DCC plc provides sales, marketing, and business support services worldwide. The company’s DCC Energy segment offers oil and liquefied petroleum gas products to commercial, retail, agricultural, industrial, marine, and other customers, as well as fuel cards. This segment serves approximately 1.4 million customers in approximately 9 countries. Its DCC Technology segment sells a range of computing products, including tablets, notebooks, and PC’s; communications products, such as smartphones, feature phones, accessories, and unified communications; and servers and storage, audio visual products, printers, peripherals, networking and security products, cables and connectors, and consumables, as well as consumer technology products comprising gaming consoles, peripherals and software, wearable technology, consumer electronics, and accessories to retailers, etailers, and resellers. This segment also offers supply chain services. The company’s DCC Healthcare segment sells, markets, and distributes a range of own and third party branded pharmaceuticals and medical devices to hospitals, pharmacies, GPs, and other healthcare providers; and outsourced product development, manufacturing, packing, and other services to the health and beauty brand owners. This segment provides generic pharmaceuticals, including solid dose, injectable, and inhaler products across a range of therapy areas, including oncology, beta lactam and other antibiotics, respiratory, pain management, hematology, anaesthesia, addiction, and emergency medicine; and medical devices and consumables in the areas of wound care, electrodes, diathermy, anaesthesia, endovascular, cardiology and IV access, minimally invasive surgery, and diagnostics. It also provides nutritional, beauty, and healthcare creams and liquids. DCC plc was founded in 1976 and is headquartered in Dublin, Ireland.

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