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

Risk and Volatility

Mastercard has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Mastercard’s rivals have a beta of 0.67, meaning that their average stock price is 33% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mastercard 0 3 29 0 2.91
Mastercard Competitors 743 3681 7095 291 2.59

Mastercard presently has a consensus target price of $184.72, suggesting a potential downside of 3.39%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 6.03%. Given Mastercard’s rivals higher probable upside, analysts plainly believe Mastercard has less favorable growth aspects than its rivals.

Dividends

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.

Institutional & Insider Ownership

75.8% of Mastercard shares are held by institutional investors. Comparatively, 62.1% of shares of all “Business services, not elsewhere classified” companies are held by institutional investors. 0.3% of Mastercard 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, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Mastercard and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Mastercard $12.50 billion $3.92 billion 41.75
Mastercard Competitors $2.54 billion $351.63 million 9.40

Mastercard has higher revenue and earnings than its rivals. Mastercard 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Mastercard 32.42% 91.56% 25.39%
Mastercard Competitors 5.28% 3.47% 0.89%

Summary

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

About Mastercard

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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