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Aimia’s marketing program will be able to monitor what an eBay customer buys in the U.K. (ROBERT GALBRAITH/REUTERS)
Aimia’s marketing program will be able to monitor what an eBay customer buys in the U.K. (ROBERT GALBRAITH/REUTERS)

Five tech stocks to buy for 2013 Add to ...

  • The revenue growth came in higher than the industry average of 10.7 per cent. Since the same quarter one year prior, revenues slightly increased by 5.5 per cent. Growth in the company’s revenue appears to have helped boost the earnings per share.
  • The company has improved earnings per share by 9.6 per cent in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MasterCard increased its bottom line by earning $14.83 versus $14.05 in the prior year. This year, the market expects an improvement in earnings ($21.95 versus $14.83).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the IT Services industry average. The net income increased by 7.7 per cent when compared to the same quarter one year prior, going from $717.00-million to $772.00-million.
  • The gross profit margin for MasterCard is rather high; currently it is at 58.50 per cent. It has increased from the same quarter the previous year. Along with this, the net profit margin of 40.25 per cent significantly outperformed against the industry average.
  • Net operating cash flow has remained constant at $1,014.00-million with no significant change when compared to the same quarter last year. In addition, MasterCard has modestly surpassed the industry average cash flow growth rate of –5.60 per cent.

MasterCard Incorporated, a payments and technology company, together with its subsidiaries, provides transaction processing and other payment-related services in the United States and internationally. MasterCard has a market cap of $57.43-billion and is part of the services sector and diversified services industry.

View the full MasterCard Ratings Report.

Visa
Visa is rated by TheStreet Ratings as a buy with a grade of A. The company’s strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

  • The revenue growth came in higher than the industry average of 10.7 per cent. Since the same quarter one year prior, revenues rose by 14.6 per cent. Growth in the company’s revenue appears to have helped boost the earnings per share.
  • Visa has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favourable sign. Along with the favourable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.19, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 88.9 per cent when compared to the same quarter one year prior, rising from $880.00-million to $1,662.00-million.
  • Net operating cash flow has significantly increased by 57.71 per cent to $1,369.00-million when compared to the same quarter last year. In addition, Visa has also vastly surpassed the industry average cash flow growth rate of –5.64 per cent.
  • The gross profit margin for Visa is rather high; currently it is at 59.10 per cent. Regardless of its high profit margin, Visa has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, Visa’s net profit margin of 60.90 per cent significantly outperformed against the industry.

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $78.6-billion and is part of the services sector and diversified services industry.

View the full Visa Ratings Report.

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