SHF (NASDAQ:SHFS – Get Free Report) and Visa (NYSE:V – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.
Analyst Recommendations
This is a summary of current ratings and target prices for SHF and Visa, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SHF | 1 | 0 | 0 | 0 | 1.00 |
| Visa | 0 | 0 | 34 | 3 | 3.08 |
Visa has a consensus target price of $426.12, suggesting a potential upside of 4.44%. Given Visa’s stronger consensus rating and higher possible upside, analysts plainly believe Visa is more favorable than SHF.
Risk and Volatility
SHF has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Visa has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Insider & Institutional Ownership
29.2% of SHF shares are held by institutional investors. Comparatively, 82.2% of Visa shares are held by institutional investors. 5.8% of SHF shares are held by insiders. Comparatively, 0.1% of Visa shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares SHF and Visa’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SHF | -47.33% | -90.25% | -41.71% |
| Visa | 50.78% | 67.68% | 25.45% |
Valuation and Earnings
This table compares SHF and Visa”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SHF | $7.67 million | 0.01 | -$2.16 million | ($11.88) | -0.01 |
| Visa | $40.00 billion | 18.20 | $20.06 billion | $11.76 | 34.70 |
Visa has higher revenue and earnings than SHF. SHF is trading at a lower price-to-earnings ratio than Visa, indicating that it is currently the more affordable of the two stocks.
Summary
Visa beats SHF on 12 of the 14 factors compared between the two stocks.
About SHF
SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.
About Visa
Visa Inc. operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services. The company also provides acceptance solutions, which include Cybersource that provides modular and value-added services for connecting merchants to payment processing; risk and identity solutions, such as Visa Advanced Authorization, Visa Secure, Visa Risk and Decision Manager, Visa Consumer Authentication Service, and payment-decisioning solutions for fraud prevention; and Visa Consulting and Analytics, a payment consulting advisory services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brand names. The company serves merchants, financial institutions, and government entities. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.
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