Comparing Visa (NYSE:V) and Marchex (NASDAQ:MCHX)

Marchex (NASDAQ:MCHX) and Visa (NYSE:V) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Volatility & Risk

Marchex has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500. Comparatively, Visa has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Valuation and Earnings

This table compares Marchex and Visa’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marchex $51.22 million 2.09 -$38.45 million ($0.18) -14.33
Visa $24.11 billion 17.15 $12.31 billion $5.63 38.13

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

Profitability

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

Net Margins Return on Equity Return on Assets
Marchex -14.53% -19.29% -13.62%
Visa 51.07% 37.62% 15.86%

Institutional & Insider Ownership

60.0% of Marchex shares are owned by institutional investors. Comparatively, 80.8% of Visa shares are owned by institutional investors. 18.6% of Marchex shares are owned by insiders. Comparatively, 0.2% of Visa shares are owned by 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 Ratings

This is a summary of recent ratings and recommmendations for Marchex and Visa, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marchex 0 0 2 0 3.00
Visa 0 4 21 0 2.84

Marchex currently has a consensus price target of $4.00, indicating a potential upside of 55.04%. Visa has a consensus price target of $267.12, indicating a potential upside of 24.43%. Given Marchex’s stronger consensus rating and higher probable upside, research analysts clearly believe Marchex is more favorable than Visa.

Summary

Visa beats Marchex on 10 of the 14 factors compared between the two stocks.

Marchex Company Profile

Marchex, Inc. operates as a conversational analytics and solutions company which helps businesses connect, drive, measure, convert callers into customers, and connects the voice of the customer to business. It offers Marchex call analytics platform, Marchex call marketplace and Marchex local leads products to automotive, travel and hospitality, telecommunications, insurance, home services, digital agencies, healthcare, education & careers, financial services, legal, real estate and senior living industries. It delivers data insights and incorporates artificial intelligence (AI)-powered functionality that drives insights and solutions to help companies find, engage, and support its customers across voice and text-based communication channels. The company was founded by Russell C. Horowitz, Ethan A. Caldwell, Peter Christothoulou, and John Keister on January 17, 2003 and is headquartered in Seattle, WA.

Visa Company Profile

Visa, Inc. engages in the provision of digital payment services. It also facilitates global commerce through the transfer of value and information among global network of consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It offers debit card, credit card, prepaid products, commercial payment solutions, and global automated teller machine (ATM). The company was founded by Dee Hock in 1958 and is headquartered in San Francisco, CA.

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