Mastercard (NYSE:MA – Get Rating) and TuanChe (NASDAQ:TC – Get Rating) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.
Insider & Institutional Ownership
74.5% of Mastercard shares are held by institutional investors. Comparatively, 0.2% of TuanChe shares are held by institutional investors. 0.3% of Mastercard shares are held by company insiders. Comparatively, 0.5% of TuanChe shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Mastercard and TuanChe’s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Mastercard | $22.24 billion | 15.93 | $9.93 billion | $10.01 | 37.34 |
TuanChe | $26.56 million | 0.48 | -$22.93 million | N/A | N/A |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Mastercard and TuanChe, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Mastercard | 1 | 2 | 18 | 0 | 2.81 |
TuanChe | 0 | 0 | 0 | 0 | N/A |
Mastercard currently has a consensus price target of $417.27, suggesting a potential upside of 11.64%. Given Mastercard’s higher possible upside, equities analysts clearly believe Mastercard is more favorable than TuanChe.
Volatility and Risk
Mastercard has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, TuanChe has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500.
Profitability
This table compares Mastercard and TuanChe’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Mastercard | 42.33% | 169.12% | 27.24% |
TuanChe | N/A | N/A | N/A |
Summary
Mastercard beats TuanChe on 10 of the 11 factors compared between the two stocks.
About Mastercard
Mastercard, Inc. is a technology company, which engages in the payments industry that connects consumers, financial institutions, merchants, governments, and business. It offers payment solutions for the development and implementation of credit, debit, prepaid, commercial, and payment programs. The company was founded in November 1966 and is headquartered in Purchase, NY.
About TuanChe
TuanChe Ltd. operates as a holding company, which engages in the operation of an omni-channel automotive marketplace. It offers auto shows, group-purchase facilitation, and virtual dealership services. The company was founded by Wei Wen and Jian Chen Sun in 2010 and is headquartered in Beijing, China.
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