Visa (NYSE:V) and Kingold Jewelry (NASDAQ:KGJI) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Risk and Volatility
Visa has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Kingold Jewelry has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.
This table compares Visa and Kingold Jewelry’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Visa||$20.61 billion||15.60||$10.30 billion||$4.61||34.74|
|Kingold Jewelry||$2.48 billion||0.02||$49.55 million||N/A||N/A|
Visa has higher revenue and earnings than Kingold Jewelry.
Visa pays an annual dividend of $1.00 per share and has a dividend yield of 0.6%. Kingold Jewelry does not pay a dividend. Visa pays out 21.7% of its earnings in the form of a dividend. Visa has increased its dividend for 10 consecutive years.
Insider & Institutional Ownership
80.9% of Visa shares are owned by institutional investors. Comparatively, 0.2% of Kingold Jewelry shares are owned by institutional investors. 0.2% of Visa shares are owned by insiders. Comparatively, 27.3% of Kingold Jewelry shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Visa and Kingold Jewelry’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Visa and Kingold Jewelry, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Visa currently has a consensus target price of $169.75, indicating a potential upside of 5.99%. Given Visa’s higher possible upside, equities research analysts plainly believe Visa is more favorable than Kingold Jewelry.
Visa beats Kingold Jewelry on 13 of the 15 factors compared between the two stocks.
Visa Inc. operates as a payments technology company worldwide. The company facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions; and offers fraud protection for account holders and assured payment for merchants. In addition, the company offers card products, as well as value-added services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brands. Visa Inc. was incorporated in 2007 and is headquartered in San Francisco, California.
About Kingold Jewelry
Kingold Jewelry, Inc. designs, manufactures, and sells 24-karat gold jewelry and Chinese ornaments in the People's Republic of China. It offers a range of in-house designed products, including gold necklaces, rings, earrings, bracelets, and pendants. The company sells its products to wholesalers and retailers under the Kingold brand. Kingold Jewelry, Inc. was founded in 2002 and is based in Wuhan, the People's Republic of China.
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