Analyzing PFSweb (PFSW) & Mastercard (MA)

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

Volatility and Risk

PFSweb has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Mastercard has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
PFSweb 0.65% 14.43% 3.50%
Mastercard 33.81% 103.82% 27.21%

Analyst Recommendations

This is a summary of current recommendations and price targets for PFSweb and Mastercard, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PFSweb 0 1 5 0 2.83
Mastercard 0 3 26 0 2.90

PFSweb currently has a consensus price target of $10.60, suggesting a potential upside of 32.67%. Mastercard has a consensus price target of $208.48, suggesting a potential downside of 4.02%. Given PFSweb’s higher probable upside, equities analysts clearly believe PFSweb is more favorable than Mastercard.

Insider and Institutional Ownership

63.3% of PFSweb shares are held by institutional investors. Comparatively, 74.4% of Mastercard shares are held by institutional investors. 5.1% of PFSweb shares are held by company insiders. Comparatively, 0.3% of Mastercard shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares PFSweb and Mastercard’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PFSweb $326.83 million 0.47 -$3.96 million $0.20 39.95
Mastercard $12.50 billion 18.05 $3.92 billion $4.58 47.43

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

Dividends

Mastercard pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. PFSweb does not pay a dividend. Mastercard pays out 21.8% of its earnings in the form of a dividend. Mastercard has raised its dividend for 6 consecutive years.

Summary

Mastercard beats PFSweb on 14 of the 17 factors compared between the two stocks.

About PFSweb

PFSweb, Inc. provides omni-channel commerce solutions in the United States, Europe, Canada, and India. It operates through two segments, PFSweb, and Business and Retail Connect. The company offers strategic commerce consulting services, including commerce strategy, omni-channel consulting, digital opportunity audit, organizational/operational readiness, and platform evaluation/selection services; and strategy, design, and digital marketing services, such as digital strategy, design, user experience, interactive development, SEO and paid search, affiliate marketing, conversion optimization, storefront management, email marketing, and digital analytics. It also provides technology services comprising commerce platform development, managed, quality assurance, and training services; order fulfillment services, including distribution facilities and infrastructure, facility operations and management, and kitting and assembly services; and order management services, such as technology collaboration and information management services. In addition, the company offers customer care services comprising customer service application, customer assistance, quality monitoring, and customer self-help; and financial services consisting of business-to-business and direct-to-consumer financial management services. The company serves clients in various industries, such as fashion apparel and accessories, fragrance and beauty products, consumer packaged goods, home furnishings and housewares, coins and collectibles, and technology products. PFSweb, Inc. was founded in 1999 and is headquartered in Allen, Texas.

About Mastercard

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. The company also offers value-added services, such as safety and security products, loyalty and reward programs, information and consulting services, issuer and acquirer processing solutions, and payment and mobile gateways. In addition, it provides various integrated products and services for account holders, merchants, financial institutions, businesses, governments, and other organizations; programs that enable issuers to provide consumers with cards to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid payment programs and management services; and commercial payment products and solutions. Further, the company provides products and services to prevent, detect, and respond to fraud and cyber-attacks, and ensure the safety of transactions. It offers payment solutions and services under the MasterCard, Maestro, and Cirrus brands. Mastercard Incorporated has a strategic partnership with Bahrain Commercial Facilities Company BSC. The company was founded in 1966 and is headquartered in Purchase, New York.

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