Kingold Jewelry (KGJI) versus Visa (V) Financial Contrast

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.

Earnings & Valuation

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.

Dividends

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.

Profitability

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
Visa 50.61% 39.32% 16.07%
Kingold Jewelry 2.00% 11.23% 1.86%

Analyst Recommendations

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 0 1 23 0 2.96
Kingold Jewelry 0 0 0 0 N/A

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.

Summary

Visa beats Kingold Jewelry on 13 of the 15 factors compared between the two stocks.

About Visa

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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