WallStSmart

Visa Inc. Class A (V)vsYirendai Ltd (YRD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Visa Inc. Class A generates 624% more annual revenue ($41.39B vs $5.72B). V leads profitability with a 50.2% profit margin vs 0.7%. YRD appears more attractively valued with a PEG of 1.24. V earns a higher WallStSmart Score of 68/100 (B-).

V

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 10.0Value: 9.3Quality: 6.5
Piotroski: 4/9Altman Z: 1.84

YRD

Hold

42

out of 100

Grade: D

Growth: 4.0Profit: 5.0Value: 7.3Quality: 8.5
Piotroski: 3/9Altman Z: 3.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

VUndervalued (+17.4%)

Margin of Safety

+17.4%

Fair Value

$369.26

Current Price

$304.91

$64.35 discount

UndervaluedFair: $369.26Overvalued
YRDSignificantly Overvalued (-675.0%)

Margin of Safety

-675.0%

Fair Value

$0.48

Current Price

$1.81

$1.33 premium

UndervaluedFair: $0.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

V5 strengths · Avg: 9.6/10
Market CapQuality
$585.66B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
53.9%10/10

Every $100 of equity generates 54 in profit

Profit MarginProfitability
50.2%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
68.3%10/10

Strong operational efficiency at 68.3%

Free Cash FlowQuality
$6.40B8/10

Generating 6.4B in free cash flow

YRD3 strengths · Avg: 10.0/10
Price/BookValuation
0.1x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.4510/10

Safe zone — low bankruptcy risk

Areas to Watch

V4 concerns · Avg: 4.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

P/E RatioValuation
28.5x4/10

Moderate valuation

Price/BookValuation
15.2x4/10

Trading at 15.2x book value

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

YRD4 concerns · Avg: 3.3/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Market CapQuality
$451.91M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.4%3/10

ROE of 0.4% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : V

The strongest argument for V centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 50.2% and operating margin at 68.3%. Revenue growth of 14.6% demonstrates continued momentum.

Bull Case : YRD

The strongest argument for YRD centers on Price/Book, Debt/Equity, Altman Z-Score. PEG of 1.24 suggests the stock is reasonably priced for its growth.

Bear Case : V

The primary concerns for V are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : YRD

The primary concerns for YRD are P/E Ratio, Market Cap, Return on Equity. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

V profiles as a mature stock while YRD is a value play — different risk/reward profiles.

YRD carries more volatility with a beta of 0.85 — expect wider price swings.

V is growing revenue faster at 14.6% — sustainability is the question.

V generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

V scores higher overall (68/100 vs 42/100), backed by strong 50.2% margins and 14.6% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Visa Inc. Class A

FINANCIAL SERVICES · CREDIT SERVICES · USA

Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.

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Yirendai Ltd

FINANCIAL SERVICES · CREDIT SERVICES · China

Yiren Digital Ltd., is an online consumer finance marketplace connecting borrowers and investors in the People's Republic of China.

Visit Website →

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