Head-To-Head Contrast: Loomis (OTCMKTS:LOIMF) & Mastercard (NYSE:MA)

Mastercard (NYSE:MA) and Loomis (OTCMKTS:LOIMF) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Risk and Volatility

Mastercard has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Loomis has a beta of -1.52, suggesting that its stock price is 252% less volatile than the S&P 500.

Insider & Institutional Ownership

97.3% of Mastercard shares are owned by institutional investors. 0.1% of Mastercard shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Mastercard and Loomis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mastercard	0	2	24	2	3.00
Loomis	0	0	0	0	0.00

Mastercard currently has a consensus target price of $630.89, suggesting a potential upside of 11.54%. Given Mastercard’s stronger consensus rating and higher probable upside, equities analysts plainly believe Mastercard is more favorable than Loomis.

Valuation and Earnings

This table compares Mastercard and Loomis”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mastercard	$30.24 billion	16.91	$12.87 billion	$14.83	38.14
Loomis	$2.88 billion	N/A	$155.24 million	$2.45	17.49

Mastercard has higher revenue and earnings than Loomis. Loomis is trading at a lower price-to-earnings ratio than Mastercard, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mastercard and Loomis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mastercard	44.93%	200.01%	29.26%
Loomis	5.73%	13.56%	4.52%

Summary

Mastercard beats Loomis on 14 of the 14 factors compared between the two stocks.

About Mastercard

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions. It also provides solutions that enable businesses or governments to make payments to businesses, including Virtual Card Number, which is generated dynamically from a physical card and leverages the credit limit of the funding account; a platform to optimize supplier payment enablement campaigns for financial institutions; and treasury intelligence platform that offers corporations with recommendations to enhance working capital performance and accelerate spend on cards. In addition, the company offers Mastercard Send, which partners with digital messaging and payment platforms to enable consumers to send money directly within applications to other consumers; and Mastercard Cross-Border Services enables a range of payment flows through a distribution network with a single point of access to send and receive money globally through various channels, including bank accounts, mobile wallets, cards, and cash payouts. Further, it provides cyber and intelligence solutions; insights and analytics, consulting, marketing, loyalty, processing, and payment gateway solutions for e-commerce merchants; and open banking and digital identity services. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus name. Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York.

About Loomis

Loomis AB (publ) provides solutions for the distribution, payments, handling, storage, and recycling of cash and other valuables. The company offers a range of solutions for cash in transit, cash management services, foreign exchange services, automated teller machines, automated solutions, and international valuables logistics, as well as operates Loomis Pay, a payment service that enables processing of various types of payment methods, such as card, cash, and digital alternatives. It serves financial institutions, banks, retailers, commercial enterprises, and other customers, as well as public sector in Sweden, the United States, France, Switzerland, Spain, the United Kingdom, and internationally. Loomis AB (publ) was founded in 1852 and is headquartered in Stockholm, Sweden.