Visa or Block: Which Stock Has More Upside?

XYZ: Block logo
XYZ
Block

Even as Block fell -7.7% during the past Day, its peer Visa may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Visa (V) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Block (XYZ) stock, suggesting you may be better off investing in V

  • V’s quarterly revenue growth was 11.5%, vs. XYZ’s 2.3%.
  • In addition, its Last 12 Months revenue growth came in at 11.3%, ahead of XYZ’s 0.5%.
  • V leads on profitability over both periods – LTM margin of 66.4% and 3-year average of 66.8%.

A single stock can be risky, but there is a huge value to a broader, diversified approach we take with the Trefis High Quality Portfolio. Separately, consider what the long-term performance for your portfolio could be if you combined 10% commodities, 10% gold, and 2% crypto with equities.

XYZ creates payment solutions with hardware for card and contactless transactions, offering reporting, analytics, and next-day settlement, including devices like card readers and an iPad-based point of sale system. V facilitates global digital payments by connecting consumers, merchants, and institutions through VisaNet, a network enabling transaction authorization, clearing, and settlement.

Valuation & Performance Overview

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  XYZ V Preferred
     
Valuation      
P/EBIT Ratio 17.3 16.4 V
     
Revenue Growth      
Last Quarter 2.3% 11.5% V
Last 12 Months 0.5% 11.3% V
Last 3 Year Average 12.6% 10.9% XYZ
     
Operating Margins      
Last 12 Months 9.6% 66.4% V
Last 3 Year Average 5.9% 66.8% V
     
Momentum      
Last 3 Year Return 4.4% 72.2% V

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: XYZ Revenue Comparison | V Revenue Comparison
See more margin details: XYZ Operating Income Comparison | V Operating Income Comparison
 
But do these numbers tell the full story? Read Buy or Sell V Stock to see if Visa’s edge holds up under the hood or if Block still has cards to play (see Buy or Sell XYZ Stock).

Historical Market Performance

  2020 2021 2022 2023 2024 2025 Total [1] Avg Best
Returns
XYZ Return 248% -26% -61% 23% 10% -17% 13%  
V Return 17% -0% -3% 26% 22% 7% 87%  
S&P 500 Return 16% 27% -19% 24% 23% 14% 108% <===
Monthly Win Rates [3]
XYZ Win Rate 83% 50% 42% 42% 58% 70%   58%  
V Win Rate 50% 42% 42% 75% 67% 40%   52%  
S&P 500 Win Rate 58% 75% 42% 67% 75% 70%   64% <===
Max Drawdowns [4]
XYZ Max Drawdown -39% -27% -68% -38% -26% -45%   -41%  
V Max Drawdown -28% -13% -18% -0% -2% -3%   -11% <===
S&P 500 Max Drawdown -31% -1% -25% -1% -2% -15%   -12%  

[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/7/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year

 
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read V Dip Buyer Analyses and XYZ Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.

Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.