Financial Contrast: Paypoint (OTCMKTS:PYPTF) versus Visa (NYSE:V)

Visa (NYSE:V) and Paypoint (OTCMKTS:PYPTF) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Risk & Volatility

Visa has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Paypoint has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.

Institutional & Insider Ownership

82.2% of Visa shares are held by institutional investors. 0.1% of Visa shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Visa	52.16%	58.93%	23.38%
Paypoint	N/A	N/A	N/A

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Visa	$35.93 billion	17.40	$19.74 billion	$10.24	33.09
Paypoint	$391.23 million	1.72	$24.49 million	N/A	N/A

Visa has higher revenue and earnings than Paypoint.

Analyst Recommendations

This is a summary of recent ratings and price targets for Visa and Paypoint, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Visa	0	5	22	1	2.86
Paypoint	0	0	0	0	0.00

Visa presently has a consensus target price of $380.84, indicating a potential upside of 12.41%. Given Visa’s stronger consensus rating and higher possible upside, research analysts clearly believe Visa is more favorable than Paypoint.

Summary

Visa beats Paypoint on 13 of the 13 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 Paypoint

PayPoint plc engages in the provision of payments and banking, shopping, and e-commerce services and products in the United Kingdom. The company operates through two segments: PayPoint and Love2shop. The PayPoint segment provides card payment services to retailers, including leased payment devices; EPoS; ATM cash machines; SIM cards sales; receipt advertising; bill payment services and cash top-ups to individual consumers; parcel delivery and collection services; retailer service fees solutions; and digital payment services, as well as cash through to digital services. The segment offers its products under PayPoint One, eMoney, MultiPay, CashOut, and Direct Debits platforms. The Love2shop segment is involved in the provision of shopping vouchers, cards, and e-codes which customers may redeem with participating retailers; and Christmas savings club, to which customers make regular payments throughout the year to help spread the cost of Christmas, before converting to a voucher. It serves consumers, SMEs, and convenience retailers in the commercial, not-for-profit, and public sectors. The company was founded in 1996 and is headquartered in Welwyn Garden City, the United Kingdom.