Visa and Shift4 Payments Outshine YETI with Strong Growth

Two cash-rich companies stand out as strong investment opportunities: Visa (V) and Shift4 Payments (FOUR). Both companies have demonstrated impressive revenue growth and free cash flow margins.

Visa operates one of the world's largest electronic payments networks, processing over 829 million transactions daily. The company has achieved 14.5% annual revenue growth over the last five years, surpassing its sector average. Its market-beating return on equity illustrates that management has a knack for investing in profitable ventures.

Shift4 Payments provides integrated payment processing solutions and software that help businesses accept and manage transactions across various channels. The company has recorded an annual revenue growth of 27.8% over the last two years, indicating its market share increased during this cycle. Its return on equity is a robust 16%, showcasing management's expertise in identifying profitable investments.

On the other hand, YETI (YETI) fails to impress with its lackluster revenue growth and anticipated drop in free cash flow margin. The company's capital intensity will likely increase as its free cash flow margin is expected to decline by 2.2 percentage points over the next year.