Mastercard (NYSE: MA) and The KEYW Holding Corporation (NASDAQ:KEYW) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitabiliy, analyst recommendations, dividends, risk, valuation and institutional ownership.
Volatility and Risk
Mastercard has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, The KEYW Holding Corporation has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.
Insider and Institutional Ownership
75.8% of Mastercard shares are owned by institutional investors. Comparatively, 97.3% of The KEYW Holding Corporation shares are owned by institutional investors. 0.3% of Mastercard shares are owned by company insiders. Comparatively, 4.6% of The KEYW Holding Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Mastercard and The KEYW Holding Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The KEYW Holding Corporation||-6.39%||-1.67%||-0.92%|
Mastercard pays an annual dividend of $0.88 per share and has a dividend yield of 0.7%. The KEYW Holding Corporation does not pay a dividend. Mastercard pays out 21.8% of its earnings in the form of a dividend. The KEYW Holding Corporation has raised its dividend for 5 consecutive years.
This is a breakdown of recent recommendations for Mastercard and The KEYW Holding Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The KEYW Holding Corporation||0||2||3||0||2.60|
Mastercard presently has a consensus price target of $128.45, suggesting a potential upside of 0.61%. The KEYW Holding Corporation has a consensus price target of $12.33, suggesting a potential upside of 61.85%. Given The KEYW Holding Corporation’s higher possible upside, analysts plainly believe The KEYW Holding Corporation is more favorable than Mastercard.
Valuation and Earnings
This table compares Mastercard and The KEYW Holding Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Mastercard||$11.42 billion||11.91||$6.61 billion||$4.04||31.60|
|The KEYW Holding Corporation||$282.64 million||1.32||$18.86 million||($0.44)||-17.32|
Mastercard has higher revenue and earnings than The KEYW Holding Corporation. The KEYW Holding Corporation is trading at a lower price-to-earnings ratio than Mastercard, indicating that it is currently the more affordable of the two stocks.
Mastercard beats The KEYW Holding Corporation on 12 of the 17 factors compared between the two stocks.
Mastercard Company Profile
MasterCard Incorporated is a technology company that connects consumers, financial institutions, merchants, governments and businesses across the world, enabling them to use electronic forms of payment. The Company operates through Payment Solutions segment. The Company allows user to make payments by creating a range of payment solutions and services using its brands, which include MasterCard, Maestro and Cirrus. The Company provides a range of products and solutions that support payment products, which customers can offer to their cardholders. The Company’s services facilitate transactions on its network among cardholders, merchants, financial institutions and governments. The Company’s products include consumer credit and charge, commercial, debit, prepaid, commercial and digital. The Company’s consumer credit and charge offers a range of programs that enables issuers to provide consumers with cards allowing users to defer payment.
The KEYW Holding Corporation Company Profile
The KeyW Holding Corporation is a holding company. The Company is a provider of engineering and technology solutions to support the collection, processing, analysis and dissemination of information across the full spectrum of the Intelligence, cyber and counterterrorism communities missions. It operates through Government Solutions segment. Its solutions are designed to meet the needs of agile intelligence and the United States government national security priorities through a range of cyber operations and training, geospatial intelligence, cloud and data analytics, engineering, and intelligence analysis and operations offerings. Its Intelligence Surveillance and Reconnaissance solution suite is deployed from a sensor delivery platform. It includes products, including electro-optical, hyperspectral and synthetic aperture radar sensors, and other products that it manufactures and integrates with hardware and software to meet evolving intelligence mission requirements.
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