Global Payments vs Visa Which Is More Favorable?
Global Payments Inc. and Visa Inc. are both major players in the payment processing industry, but they have distinct differences in terms of their business models and market positioning. Global Payments focuses on providing comprehensive payment processing solutions for merchants and businesses, while Visa is a global payments technology company that operates a network connecting consumers, merchants, financial institutions, and governments worldwide. Both stocks offer investors exposure to the growing fintech sector, but their performances may vary based on industry trends and company-specific factors.
Global Payments or Visa?
When comparing Global Payments and Visa, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Global Payments and Visa.
Dividend Investors:
Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company.
Global Payments has a dividend yield of 1.0%, while Visa has a dividend yield of 0.63%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Global Payments reports a 5-year dividend growth of 34.76% year and a payout ratio of 16.10%. On the other hand, Visa reports a 5-year dividend growth of 15.41% year and a payout ratio of 21.67%.
Value Investors:
Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Global Payments P/E ratio at 16.04 and Visa's P/E ratio at 30.53. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Global Payments P/B ratio is 1.13 while Visa's P/B ratio is 15.92.
Growth Investors:
Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Global Payments has seen a 5-year revenue growth of 0.60%, while Visa's is 1.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Global Payments's ROE at 7.00% and Visa's ROE at 50.68%.
Retail Investors:
Retail investors often consider stock affordability and company familiarity. For example, day low prices are $99.05 for Global Payments and $348.94 for Visa. Over the past year, Global Payments's prices ranged from $91.60 to $140.38, with a yearly change of 53.25%. Visa's prices fluctuated between $252.70 and $366.54, with a yearly change of 45.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.
