Marqeta vs Visa Which Is More Lucrative?

Marqeta and Visa are two leading players in the financial technology industry, with both companies offering innovative payment solutions to consumers and businesses alike. Marqeta, a relative newcomer to the market, has quickly gained traction with its API-driven platform that enables developers to create customized payment experiences. On the other hand, Visa, a well-established global payments company, has a strong presence in the traditional card payments market. Investors looking to capitalize on the growth potential of the fintech sector may find both Marqeta and Visa stocks appealing options for their portfolios.

Marqeta or Visa?

When comparing Marqeta 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 Marqeta 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. Marqeta has a dividend yield of -%, while Visa has a dividend yield of 0.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Marqeta reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Visa reports a 5-year dividend growth of 16.27% year and a payout ratio of 21.36%.

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 Marqeta P/E ratio at 149.65 and Visa's P/E ratio at 31.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Marqeta P/B ratio is 1.92 while Visa's P/B ratio is 15.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Marqeta has seen a 5-year revenue growth of 3.76%, while Visa's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Marqeta's ROE at 1.20% and Visa's ROE at 49.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3.81 for Marqeta and $309.30 for Visa. Over the past year, Marqeta's prices ranged from $3.37 to $7.36, with a yearly change of 118.40%. Visa's prices fluctuated between $244.11 and $312.39, with a yearly change of 27.97%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.