Financial Review: MJ (OTCMKTS:MJNE) and Visa (NYSE:V)

MJ (OTCMKTS:MJNE) and Visa (NYSE:V) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares MJ and Visa”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MJ	$360,000.00	0.00	-$5.38 million	N/A	N/A
Visa	$35.93 billion	16.32	$19.74 billion	$9.73	32.34

Visa has higher revenue and earnings than MJ.

Volatility and Risk

MJ has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500. Comparatively, Visa has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Insider & Institutional Ownership

82.2% of Visa shares are owned by institutional investors. 35.9% of MJ shares are owned by company insiders. Comparatively, 0.2% of Visa shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MJ	N/A	N/A	N/A
Visa	54.96%	53.16%	22.08%

Analyst Recommendations

This is a summary of recent ratings and price targets for MJ and Visa, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MJ	0	0	0	0	0.00
Visa	0	4	23	2	2.93

Visa has a consensus price target of $321.74, suggesting a potential upside of 2.26%. Given Visa’s stronger consensus rating and higher probable upside, analysts plainly believe Visa is more favorable than MJ.

Summary

Visa beats MJ on 11 of the 12 factors compared between the two stocks.

About MJ

MJ Holdings, Inc., a cannabis holding company, engages in cultivation management, asset, and infrastructure development business in Nevada. It is also involved in production of cannabis related products; and provision of management services, dispensaries, and consulting services. The company is headquartered in Las Vegas, Nevada.

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.