Visa (NYSE:V) and LiveWorld (OTCMKTS:LVWD) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Dividends

Visa pays an annual dividend of $1.00 per share and has a dividend yield of 0.6%. LiveWorld does not pay a dividend. Visa pays out 21.7% of its earnings in the form of a dividend. Visa has increased its dividend for 10 consecutive years.

Earnings and Valuation

This table compares Visa and LiveWorld’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Visa $20.61 billion 17.25 $10.30 billion $4.61 38.88
LiveWorld $7.71 million 0.04 -$640,000.00 N/A N/A

Visa has higher revenue and earnings than LiveWorld.

Profitability

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

Net Margins Return on Equity Return on Assets
Visa 53.43% 41.04% 16.87%
LiveWorld -7.79% -68.06% -29.36%

Volatility & Risk

Visa has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, LiveWorld has a beta of 2.33, indicating that its share price is 133% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Visa and LiveWorld, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Visa 0 1 22 0 2.96
LiveWorld 0 0 0 0 N/A

Visa presently has a consensus target price of $196.13, indicating a potential upside of 9.42%. Given Visa’s higher possible upside, analysts plainly believe Visa is more favorable than LiveWorld.

Institutional and Insider Ownership

81.3% of Visa shares are owned by institutional investors. 0.2% of Visa shares are owned by company insiders. Comparatively, 16.3% of LiveWorld shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Visa beats LiveWorld on 11 of the 14 factors compared between the two stocks.

About Visa

Visa Inc. operates as a payments technology company worldwide. The company facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions; and offers fraud protection for account holders and assured payment for merchants. In addition, the company offers card products, as well as value-added services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brands. Visa Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

About LiveWorld

LiveWorld, Inc. provides social media solutions for global brands. The company is involved in developing strategy, creating and publishing content, engaging customers, moderating content, managing crises, and gleaning insight from social media. It offers engagement services, including social architecture, audit, and competitive analysis; content programming plans and authoring; day-to-day online engagement and community management; social media crisis management; highlights and custom reporting; and strategy consulting services. The company also provides content moderation services, such as moderation plans and guidelines, moderator selection and training, hourly content moderation, moderation management, moderation program model, and highlights and custom reporting. In addition, it offers insight services comprising setup, customization, training, and support; management, tagging, and analysis; and listening and monitoring of the social Web. Further, it provides listening services that include brand monitoring, social Web listening, market research listening programs, customizable listening track offerings, human management and analysis, and real-time monitoring or 30-day rear-view listening reports. Additionally, the company offers LiveEngage, a social content marketing suite that enables brand managers or customer support agents to directly respond to escalated content; LiveMod, a content moderation software enables human moderators to accept, reject, and escalate content in context; and LiveInsight software, an analytics and insights solution designed to engage and scale human review and analysis. It serves various industries, including retail, consumer packaged goods, pharmaceutical, financial and travel services, healthcare, automotive, technology, and media and entertainment. The company was formerly known as Talk City, Inc. and changed its name to Liveworld, Inc. in May 2001. Liveworld, Inc. was founded in 1996 and is headquartered in San Jose, California.

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