What Analyst Ratings Suggest for MasterCard
in March 2017, 29 of the 35 analysts covering MasterCard (MA) rated it a “buy” or “strong buy.” Four rated it a “hold,” and one rated it an “underperform.”
MasterCard’s (MA) rebates and incentives have grown at a faster pace than its revenue, mainly due to more retail clientele and increased competition.
MasterCard (MA) stock has returned 9.0% over the past quarter and 22.2% over the past year due to consistent organic growth and improved operating margins.
MasterCard (MA) is looking for more corporate and institutional partnerships to cover preferred payments and technology solutions.
MasterCard (MA) generated $4.5 billion in operating cash flows for 2016. That’s a rise of 10.9% on a year-over-year basis.
MasterCard (MA) has seen a steady rise in processed transactions, mainly due to higher growth in international markets.
MasterCard (MA) has seen strong growth internationally, partially offset by a negative exchange impact.
MasterCard (MA) is expected to release its 1Q17 earnings on April 27, 2017. Its EPS is expected to be $0.94, a 9.3% rise year-over-year.
Visa (V) stock has risen 9.7% over the past six months and 25.7% over the past year.
32 of the 36 analysts covering Visa (V) rated it a “buy” or “strong buy” in March 2017.
Visa (V) took a long-term debt of $16.5 billion for the acquisition of Visa Europe in 2016.
The payment processing industry is witnessing major changes globally due to regulatory changes, increased competition, and a demand for continual innovation.
Visa (V) is witnessing high growth through services and data processing backed by operating business growth.
Visa (V) has managed to expand its operations globally and has seen improving operating margins over the past couple of years.
Visa’s (V) US payment volumes have shown strength over the past few quarters, reflecting relative outperformance when compared with industry peers.
Visa (V) has posted over 40 billion transactions over the past couple of quarters.
Visa is expected to post earnings per share (or EPS) of $0.79 for fiscal 2Q17 and $3.32 for fiscal 2017.
Thirty of the 35 analysts covering Visa (V) rated it a “buy” or “strong buy” in January 2017. Another five analysts, or ~14.0%, rated it a “hold.”
Visa is trading at ~21.3x on a one-year forward earnings basis. Its peers are trading at an average of 16.4x.
Payment processing is witnessing major changes globally with high competition, regulatory changes, and continual innovation.