Comparing Payoneer Global (NASDAQ:PAYO) & Mastercard (NYSE:MA)

Mastercard (NYSE:MA) and Payoneer Global (NASDAQ:PAYO) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Valuation and Earnings

This table compares Mastercard and Payoneer Global”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mastercard	$28.17 billion	18.48	$12.87 billion	$15.64	37.06
Payoneer Global	$977.72 million	2.08	$121.16 million	$0.19	30.05

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

Analyst Ratings

This is a summary of recent recommendations for Mastercard and Payoneer Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mastercard	0	3	21	5	3.07
Payoneer Global	0	2	7	0	2.78

Mastercard currently has a consensus target price of $657.48, suggesting a potential upside of 13.43%. Payoneer Global has a consensus target price of $9.00, suggesting a potential upside of 57.62%. Given Payoneer Global’s higher probable upside, analysts plainly believe Payoneer Global is more favorable than Mastercard.

Volatility & Risk

Mastercard has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Payoneer Global has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Insider and Institutional Ownership

97.3% of Mastercard shares are owned by institutional investors. Comparatively, 82.2% of Payoneer Global shares are owned by institutional investors. 0.1% of Mastercard shares are owned by insiders. Comparatively, 2.6% of Payoneer Global shares are owned by 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.

Profitability

This table compares Mastercard and Payoneer Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mastercard	45.28%	202.03%	29.11%
Payoneer Global	6.96%	10.71%	1.01%

Summary

Mastercard beats Payoneer Global on 12 of the 15 factors compared between the two stocks.

About Mastercard

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions. It also provides solutions that enable businesses or governments to make payments to businesses, including Virtual Card Number, which is generated dynamically from a physical card and leverages the credit limit of the funding account; a platform to optimize supplier payment enablement campaigns for financial institutions; and treasury intelligence platform that offers corporations with recommendations to enhance working capital performance and accelerate spend on cards. In addition, the company offers Mastercard Send, which partners with digital messaging and payment platforms to enable consumers to send money directly within applications to other consumers; and Mastercard Cross-Border Services enables a range of payment flows through a distribution network with a single point of access to send and receive money globally through various channels, including bank accounts, mobile wallets, cards, and cash payouts. Further, it provides cyber and intelligence solutions; insights and analytics, consulting, marketing, loyalty, processing, and payment gateway solutions for e-commerce merchants; and open banking and digital identity services. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus name. Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York.

About Payoneer Global

Payoneer Global Inc. operates as a financial technology company. It operates a payment infrastructure platform that provides customers with a one-stop, global, multi-currency account to serve their accounts receivable and accounts payable needs. The company delivers a suite of services that includes cross-border payments, physical and virtual MasterCard cards, working capital, risk management, and other services. It also offers various payment options with minimal integration required, full back-office functions, and customer support offered. The company's platform delivers bank-grade security, stability, and redundancy. It serves customers, such as small and medium-sized businesses in approximately 190 countries and territories worldwide. Payoneer Global Inc. was founded in 2005 and is headquartered in New York, New York.