Analyzing MJ (OTCMKTS:MJNE) and Visa (NYSE:V)

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

Valuation and Earnings

This table compares Visa and MJ”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Visa	$35.93 billion	16.07	$19.74 billion	$9.73	31.85
MJ	$360,000.00	0.00	-$5.38 million	N/A	N/A

Visa has higher revenue and earnings than MJ.

Institutional and Insider Ownership

82.2% of Visa shares are owned by institutional investors. 0.2% of Visa shares are owned by company insiders. Comparatively, 35.9% of MJ shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Visa and MJ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Visa	0	4	23	2	2.93
MJ	0	0	0	0	0.00

Visa presently has a consensus price target of $321.74, indicating a potential upside of 3.81%. Given Visa’s stronger consensus rating and higher probable upside, research analysts plainly believe Visa is more favorable than MJ.

Volatility and Risk

Visa has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, MJ has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Visa	54.96%	53.16%	22.08%
MJ	N/A	N/A	N/A

Summary

Visa beats MJ on 11 of the 12 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 MJ

MJ Holdings, Inc., a cannabis holding company, engages in cultivation management, asset, and infrastructure development business in Nevada. It is also involved in production of cannabis related products; and provision of management services, dispensaries, and consulting services. The company is headquartered in Las Vegas, Nevada.