Critical Review: Visa (NYSE:V) vs. Baosheng Media Group (NASDAQ:BAOS)

Visa (NYSE:V) and Baosheng Media Group (NASDAQ:BAOS) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Insider and Institutional Ownership

82.2% of Visa shares are held by institutional investors. Comparatively, 6.3% of Baosheng Media Group shares are held by institutional investors. 0.2% of Visa shares are held by insiders. Comparatively, 22.6% of Baosheng Media Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Visa	$32.65 billion	15.16	$17.27 billion	$8.95	30.24
Baosheng Media Group	$921,834.00	3.74	-$1.85 million	N/A	N/A

Visa has higher revenue and earnings than Baosheng Media Group.

Profitability

This table compares Visa and Baosheng Media Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Visa	53.87%	51.23%	21.31%
Baosheng Media Group	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for Visa and Baosheng Media Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Visa	0	5	20	0	2.80
Baosheng Media Group	0	0	0	0	N/A

Visa presently has a consensus target price of $303.76, suggesting a potential upside of 12.23%. Given Visa’s higher possible upside, analysts plainly believe Visa is more favorable than Baosheng Media Group.

Risk & Volatility

Visa has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Baosheng Media Group has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Summary

Visa beats Baosheng Media Group on 9 of the 11 factors compared between the two stocks.

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.

About Baosheng Media Group

Baosheng Media Group Holdings Limited operates as an online marketing solution provider in the People's Republic of China. It connects advertisers, online media, and helping advertisers to manage their online marketing activities in various ways, including advising on advertising strategies, budget, and choice of advertising channels; procures ad inventory; offers ad optimization services; and administrates and fine-tunes the ad placement process. The company also serves media businesses in various ways, including identifying advertisers to buy their ad inventory; facilitating payment arrangements with advertisers; assisting advertisers in handling ad deployment logistics with media; and engaging in other marketing and promotion activities aimed at educating and inducing advertisers to use online advertising. Its advertising services comprise search engine marketing (SEM) services, such as the deployment of ranked search ads and other display search ads offered by search engine operators; and non-SEM services consisting of social media marketing, in-feed advertising, and mobile app advertising through deploying ads on media, such as social media platforms, short-video platforms, news portals, and mobile apps. The company was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.