Head to Head Review: Visa (NYSE:V) vs. Loomis (OTCMKTS:LOIMF)

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

Volatility & Risk

Visa has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Loomis has a beta of -0.92, indicating that its share price is 192% less volatile than the S&P 500.

Valuation & Earnings

This table compares Visa 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
Visa	$43.03 billion	13.57	$20.06 billion	$11.48	28.35
Loomis	$3.11 billion	1.00	$161.68 million	$2.71	17.24

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

Institutional and Insider Ownership

82.2% of Visa shares are owned by institutional investors. 0.1% of Visa 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.

Analyst Recommendations

This is a breakdown of current recommendations for Visa and Loomis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Visa	0	3	18	6	3.11
Loomis	0	1	0	0	2.00

Visa presently has a consensus price target of $387.67, suggesting a potential upside of 19.13%. Given Visa’s stronger consensus rating and higher probable upside, analysts plainly believe Visa is more favorable than Loomis.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Visa	51.68%	65.00%	24.62%
Loomis	5.72%	14.53%	4.64%

Summary

Visa beats Loomis on 15 of the 15 factors compared between the two stocks.

About Visa

Visa Inc. operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services. The company also provides acceptance solutions, which include Cybersource that provides modular and value-added services for connecting merchants to payment processing; risk and identity solutions, such as Visa Advanced Authorization, Visa Secure, Visa Risk and Decision Manager, Visa Consumer Authentication Service, and payment-decisioning solutions for fraud prevention; and Visa Consulting and Analytics, a payment consulting advisory services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brand names. The company serves merchants, financial institutions, and government entities. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.

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.