Financial Survey: Visa (NYSE:V) versus Marqeta (NASDAQ:MQ)

Visa (NYSE:V) and Marqeta (NASDAQ:MQ) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Visa and Marqeta, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Visa	0	2	17	6	3.16
Marqeta	2	8	1	0	1.91

Visa presently has a consensus price target of $387.78, indicating a potential upside of 15.08%. Marqeta has a consensus price target of $5.22, indicating a potential upside of 24.85%. Given Marqeta’s higher probable upside, analysts plainly believe Marqeta is more favorable than Visa.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Visa	51.68%	65.00%	24.62%
Marqeta	0.33%	0.27%	0.15%

Risk & Volatility

Visa has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Marqeta has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Earnings and Valuation

This table compares Visa and Marqeta”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Visa	$40.00 billion	15.11	$20.06 billion	$11.48	29.35
Marqeta	$624.88 million	2.84	-$13.93 million	$0.01	418.00

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

Insider & Institutional Ownership

82.2% of Visa shares are owned by institutional investors. Comparatively, 78.6% of Marqeta shares are owned by institutional investors. 0.1% of Visa shares are owned by company insiders. Comparatively, 12.6% of Marqeta 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 Marqeta on 11 of the 15 factors compared between the two stocks.

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.

About Marqeta

Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.