Visa (NYSE:V) and Corpay (NYSE:CPAY) Critical Survey

Corpay (NYSE:CPAY) and Visa (NYSE:V) are both large-cap financial services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Volatility & Risk

Corpay has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Visa has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Corpay and Visa, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corpay	0	3	13	0	2.81
Visa	0	2	18	6	3.15

Corpay presently has a consensus price target of $383.07, suggesting a potential upside of 6.98%. Visa has a consensus price target of $397.39, suggesting a potential upside of 13.61%. Given Visa’s stronger consensus rating and higher possible upside, analysts clearly believe Visa is more favorable than Corpay.

Profitability

This table compares Corpay and Visa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corpay	24.60%	38.68%	6.46%
Visa	51.68%	65.00%	24.62%

Earnings & Valuation

This table compares Corpay and Visa”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corpay	$4.53 billion	5.17	$1.07 billion	$16.71	21.43
Visa	$40.00 billion	15.69	$20.06 billion	$11.48	30.47

Visa has higher revenue and earnings than Corpay. Corpay is trading at a lower price-to-earnings ratio than Visa, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

98.8% of Corpay shares are owned by institutional investors. Comparatively, 82.2% of Visa shares are owned by institutional investors. 5.2% of Corpay shares are owned by company insiders. Comparatively, 0.1% of Visa shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Visa beats Corpay on 11 of the 15 factors compared between the two stocks.

About Corpay

Volatus is a leader in innovative global aerial solutions for intelligence and cargo. With over 100 years of combined institutional knowledge in aviation, Volatus provides comprehensive solutions using both piloted and remotely piloted aircraft systems for a wide array of industries, including oil and gas, energy utilities, healthcare, public safety, and infrastructure. The Company is committed to enhancing operational efficiency, safety, and sustainability through cutting-edge aerial technologies.

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.