Comprehensive Stock Comparison
Compare Visa Inc. (V) vs The Western Union Company (WU) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | V | 11.3% revenue growth vs WU's -4.0% |
| Value | WU | Lower P/E (5.3x vs 24.9x) |
| Quality / Margins | V | 50.1% net margin vs WU's 12.4% |
| Stability / Safety | WU | Beta 0.71 vs V's 0.78 |
| Dividends | V | 0.7% yield, 15-year raise streak, vs WU's 9.8% |
| Momentum (1Y) | WU | -2.4% vs V's -11.0% |
| Efficiency (ROA) | V | 21.5% ROA vs WU's 6.0%, ROIC 29.2% vs 23.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Visa operates a global electronic payments network that connects consumers, merchants, and financial institutions. It generates revenue primarily from service fees on transaction processing (about 40% of revenue) and data processing fees (about 35%), with the remainder from international transaction fees and other services. The company's massive network scale — with billions of cards accepted at tens of millions of merchants worldwide — creates a powerful two-sided platform moat that's extremely difficult to replicate.
Western Union is a global money transfer and payment services company that enables consumers and businesses to send money across borders. It generates revenue primarily from transaction fees on money transfers — with its Consumer-to-Consumer segment accounting for the vast majority — supplemented by foreign exchange spreads and business payment solutions. Its key competitive advantage is an extensive global agent network spanning over 200 countries and territories, creating a physical presence that digital-only competitors cannot easily replicate.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
V leads in 3 of 6 categories — strongest in Financial Metrics and Profitability & Efficiency. 3 categories are tied.
Financial Metrics (TTM)
V is the larger business by revenue, generating $40.0B annually — 9.9x WU's $4.0B. V is the more profitable business, keeping 50.1% of every revenue dollar as net income compared to WU's 12.4%.
| Metric | VVisa Inc. | WUThe Western Union… |
|---|---|---|
| RevenueTrailing 12 months | $40.0B | $4.0B |
| EBITDAEarnings before interest/tax | $25.8B | $934M |
| Net IncomeAfter-tax profit | $20.8B | $500M |
| Free Cash FlowCash after capex | $22.9B | $393M |
| Gross MarginGross profit ÷ Revenue | +80.4% | +28.7% |
| Operating MarginEBIT ÷ Revenue | +60.0% | +19.4% |
| Net MarginNet income ÷ Revenue | +50.1% | +12.4% |
| FCF MarginFCF ÷ Revenue | +53.9% | +9.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +3.5% | -68.1% |
Valuation Metrics
At 6.3x trailing earnings, WU trades at a 80% valuation discount to V's 31.4x P/E. On an enterprise value basis, V's 0.3x EV/EBITDA is more attractive than WU's 1.9x.
| Metric | VVisa Inc. | WUThe Western Union… |
|---|---|---|
| Market CapShares × price | $2.9B | $3.0B |
| Enterprise ValueMkt cap + debt − cash | $7.9B | $1.8B |
| Trailing P/EPrice ÷ TTM EPS | 31.39x | 6.29x |
| Forward P/EPrice ÷ next-FY EPS est. | 24.90x | 5.35x |
| PEG RatioP/E ÷ EPS growth rate | 1.98x | — |
| EV / EBITDAEnterprise value multiple | 0.31x | 1.90x |
| Price / SalesMarket cap ÷ Revenue | 0.07x | 0.75x |
| Price / BookPrice ÷ Book value/share | 18.53x | 3.29x |
| Price / FCFMarket cap ÷ FCF | 0.13x | 7.74x |
Profitability & Efficiency
V delivers a 53.6% return on equity — every $100 of shareholder capital generates $54 in annual profit, vs $52 for WU. On the Piotroski fundamental quality scale (0–9), WU scores 5/9 vs V's 4/9, reflecting solid financial health.
| Metric | VVisa Inc. | WUThe Western Union… |
|---|---|---|
| ROE (TTM)Return on equity | +53.6% | +52.2% |
| ROA (TTM)Return on assets | +21.5% | +6.0% |
| ROICReturn on invested capital | +29.2% | +23.3% |
| ROCEReturn on capital employed | +36.2% | +12.5% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 5 |
| Debt / EquityFinancial leverage | 0.66x | — |
| Net DebtTotal debt minus cash | $5.0B | -$1.2B |
| Cash & Equiv.Liquid assets | $20.2B | $1.2B |
| Total DebtShort + long-term debt | $25.2B | $0 |
| Interest CoverageEBIT ÷ Interest expense | 41.49x | 5.35x |
Total Returns (with DRIP)
A $10,000 investment in V five years ago would be worth $15,227 today (with dividends reinvested), compared to $6,052 for WU. Over the past 12 months, WU leads with a -2.4% total return vs V's -11.0%. The 3-year compound annual growth rate (CAGR) favors V at 14.1% vs WU's -1.3% — a key indicator of consistent wealth creation.
| Metric | VVisa Inc. | WUThe Western Union… |
|---|---|---|
| YTD ReturnYear-to-date | -7.4% | +4.3% |
| 1-Year ReturnPast 12 months | -11.0% | -2.4% |
| 3-Year ReturnCumulative with dividends | +48.6% | -3.9% |
| 5-Year ReturnCumulative with dividends | +52.3% | -39.5% |
| 10-Year ReturnCumulative with dividends | +362.0% | -0.7% |
| CAGR (3Y)Annualised 3-year return | +14.1% | -1.3% |
Risk & Volatility
WU is the less volatile stock with a 0.71 beta — it tends to amplify market swings less than V's 0.78 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. V currently trades 85.3% from its 52-week high vs WU's 80.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | VVisa Inc. | WUThe Western Union… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.78x | 0.71x |
| 52-Week HighHighest price in past year | $375.51 | $11.95 |
| 52-Week LowLowest price in past year | $299.00 | $7.85 |
| % of 52W HighCurrent price vs 52-week peak | +85.3% | +80.6% |
| RSI (14)Momentum oscillator 0–100 | 43.9 | 49.4 |
| Avg Volume (50D)Average daily shares traded | 6.3M | 6.6M |
Analyst Outlook
Wall Street rates V as "Buy" and WU as "Hold". Consensus price targets imply 18.0% upside for V (target: $378) vs -6.5% for WU (target: $9). For income investors, WU offers the higher dividend yield at 9.79% vs V's 0.66%.
| Metric | VVisa Inc. | WUThe Western Union… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $377.83 | $9.00 |
| # AnalystsCovering analysts | 60 | 48 |
| Dividend YieldAnnual dividend ÷ price | +0.7% | +9.8% |
| Dividend StreakConsecutive years of raises | 15 | 11 |
| Dividend / ShareAnnual DPS | $2.11 | $0.94 |
| Buyback YieldShare repurchases ÷ mkt cap | +100.0% | +7.7% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Visa Inc. (V) | 100 | 173.58 | +73.6% |
| The Western Union C… (WU) | 100 | 40.53 | -59.5% |
Visa Inc. (V) returned +52% over 5 years vs The Western Union C… (WU)'s -39%. A $10,000 investment in V 5 years ago would be worth $15,227 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Visa Inc. (V) | $15.1B | $40.0B | +165.2% |
| The Western Union C… (WU) | $5.4B | $4.0B | -25.5% |
Visa Inc.'s revenue grew from $15.1B (2016) to $40.0B (2025) — a 11.4% CAGR. The Western Union Company's revenue grew from $5.4B (2016) to $4.0B (2025) — a -3.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Visa Inc. (V) | 39.7% | 50.1% | +26.2% |
| The Western Union C… (WU) | 4.7% | 12.4% | +164.8% |
Visa Inc.'s net margin went from 40% (2016) to 50% (2025). The Western Union Company's net margin went from 5% (2016) to 12% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Visa Inc. (V) | 40.7 | 34.4 | -15.5% |
| The Western Union C… (WU) | 9.1 | 6.1 | -33.0% |
Visa Inc. has traded in a 30x–45x P/E range over 9 years; current trailing P/E is ~31x. The Western Union Company has traded in a 4x–12x P/E range over 8 years; current trailing P/E is ~6x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Visa Inc. (V) | 2.48 | 10.2 | +311.3% |
| The Western Union C… (WU) | 0.51 | 1.53 | +200.0% |
Visa Inc.'s EPS grew from $2.48 (2016) to $10.20 (2025) — a 17% CAGR. The Western Union Company's EPS grew from $0.51 (2016) to $1.53 (2025) — a 13% CAGR.
Chart 6Free Cash Flow — 5 Years
Visa Inc. generated $22B FCF in 2025 (+49% vs 2021). The Western Union Company generated $393M FCF in 2025 (-53% vs 2021).
V vs WU: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is V or WU a better buy right now?
The Western Union Company (WU) offers the better valuation at 6.3x trailing P/E (5.3x forward), making it the more compelling value choice. Analysts rate Visa Inc. (V) a "Buy" — based on 60 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — V or WU?
On trailing P/E, The Western Union Company (WU) is the cheapest at 6.3x versus Visa Inc. at 31.4x. On forward P/E, The Western Union Company is actually cheaper at 5.3x.
03Which is the better long-term investment — V or WU?
Over the past 5 years, Visa Inc. (V) delivered a total return of +52.3%, compared to -39.5% for The Western Union Company (WU). A $10,000 investment in V five years ago would be worth approximately $15K today (assuming dividends reinvested). Over 10 years, the gap is even starker: V returned +362.0% versus WU's -0.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — V or WU?
By beta (market sensitivity over 5 years), The Western Union Company (WU) is the lower-risk stock at 0.71β versus Visa Inc.'s 0.78β — meaning V is approximately 10% more volatile than WU relative to the S&P 500.
05Which has better profit margins — V or WU?
Visa Inc. (V) is the more profitable company, earning 50.1% net margin versus 12.4% for The Western Union Company — meaning it keeps 50.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: V leads at 60.0% versus 19.4% for WU. At the gross margin level — before operating expenses — V leads at 80.4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is V or WU more undervalued right now?
On forward earnings alone, The Western Union Company (WU) trades at 5.3x forward P/E versus 24.9x for Visa Inc. — 19.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for V: 18.0% to $377.83.
07Which pays a better dividend — V or WU?
All stocks in this comparison pay dividends. The Western Union Company (WU) offers the highest yield at 9.8%, versus 0.7% for Visa Inc. (V).
08Is V or WU better for a retirement portfolio?
For long-horizon retirement investors, Visa Inc. (V) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.78), 0.7% yield, +362.0% 10Y return). Both have compounded well over 10 years (V: +362.0%, WU: -0.7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between V and WU?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: V is a small-cap quality compounder stock; WU is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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