Mastercard may have greater appeal for growth investors due to its smaller size and higher growth rate, while more defensive investors may prefer Visa due to its larger size, higher margins, and lower valuation. But quite honestly, I think it's a coin flip between them given each company's risk-return profile.
Full Answer
Should you invest in MasterCard or Visa stock?
Both Mastercard and Visa have strong business models that stand to benefit in the increasingly digitized world. That said, both of these stocks appear to be excellent options for investors who want to profit from the war on cash.
Is MasterCard (Ma) vs Visa (V) a better financial stock?
MasterCard (MA) vs Visa (V): Which Is A Better Financial Stock To Buy? Mastercard ( NYSE: MA) and Visa ( NYSE: V) have a lot in common. Between them, they dominate the payment processing market.
Is it better to buy visa or MasterCard?
I think that Visa is the better buy because of its larger exposure to debit card transactions and the US market, on top on the fact that it is cheaper than Mastercard.
Is the market giving MasterCard too much credit for its growth?
However, the market appears to be giving Mastercard more credit for its faster transaction growth rate and its potential to outpace Visa in the years ahead. Mastercard's P/E ratio is an extremely high 48.2 compared to Visa's P/E of 38.8. Thus, the market appears to be appropriately factoring Mastercard's better growth profile into its valuation.
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Is Visa or Mastercard Better stock?
6:388:03Visa Stock vs Mastercard Stock | Which is Better? - YouTubeYouTubeStart of suggested clipEnd of suggested clipThat's still very high but mastercard has shown it can use its capital more efficiently. This leadsMoreThat's still very high but mastercard has shown it can use its capital more efficiently. This leads some investors to value mastercard at a higher multiple.
Is Mastercard a good stock to buy now?
Accordingly, Mastercard needs to deliver a revenue CAGR of 22.3% from FY24-CQ2'26. However, the Street's modeling suggests that its growth could continue to moderate to the mid-teens over time....MA Stock Is Overvalued.StockMAAssumed TTM FCF margin in CQ2'2645.7%Implied TTM revenue by CQ2'26$40.79B4 more rows•Jun 17, 2022
Is Visa stock a Buy right Now?
Bottom line: Visa stock is not a buy, as no discernible pattern has formed. Keep an eye on the Dow Jones card giant, as it compares favorably with many top-rated large-cap stocks to buy or watch. To find other best stocks to buy or watch, check out IBD Stock Lists and other IBD research.
Why should I buy Visa stock?
Visa (NYSE:V) has an annual dividend growth rate over the last 5 years of 17.91% and a low payout ratio of just 21.54%. The company's characteristics make Visa attractive for dividend income investors seeking dividend growth stocks and for investors with a long investment horizon aiming to invest for their retirement.
Why Mastercard stock is down?
Rising inflation and interest rates brought Mastercardʻs stock price down on fears of recession. High travel spending has been a bright spot for the company.
What is the target price for Mastercard?
Stock Price Target MAHigh$472.00Median$417.00Low$375.00Average$425.48Current Price$354.28
What will Visa stock be worth in 5 years?
What will the Visa stock be worth in the next 5 years? According to our predictions, the Visa stock can be worth up to $292.98 in the next five years. However, the average price of the stock in five years' time is expected to be $279.37.
Is Visa a buy or hold?
Visa has received a consensus rating of Buy. The company's average rating score is 2.80, and is based on 16 buy ratings, 4 hold ratings, and no sell ratings.
Will Visa stock go back up?
These happier holiday figures saw Visa stock value rebound above $210 in December as 2021 drew to a close. The relative strength index (RSI) for Visa shares is currently bullish at 27.03, signalling the price is more likely to see an upward movement price rather than another drop.
What is the future of Visa stock?
The 31 analysts offering 12-month price forecasts for Visa Inc have a median target of 261.00, with a high estimate of 296.00 and a low estimate of 220.00. The median estimate represents a +22.64% increase from the last price of 212.81.
Is Visa stock undervalued?
Visa Inc has a current Real Value of $227.06 per share. The regular price of the company is $211.33. At this time, the company appears to be undervalued....2022-05-12.LowEstimated ValueHigh209.02210.77212.52
Is Google a strong buy?
Google in 2021 finally outperformed high-tech peers once called the "FANG" stocks. But it's in the same boat as Facebook-parent Meta Platforms (FB), Amazon.com (AMZN) and Netflix (NFLX) this year amid a bear market in technology stocks. GOOGL stock jumped 65% in 2021.
Is Mastercard stock overvalued?
The bottom line is that Mastercard is overvalued given its current performance.
Is Mastercard going to split?
MasterCard will split its stock 10-for-1 effective after market close on January 9. Shareholders will receive their nine additional shares on January 21. Total shares outstanding will increase from 120 million to 1.2 billion.
Is Mastercard a good stock to buy Zacks?
Zacks Rank: Mastercard currently carries a Zacks Rank #3.
Is Mastercard undervalued?
Mastercard has been one of the great growth stories on Wall Street for over a decade, and analysts have consistently undervalued the company and not appreciated how strong this industry leader's business model is.
How much did MA stock gain in 2020?
It’s worth pointing out that MA stock gained 19% in 2020, a decent performance by any measure. It outperformed the S&P 500, which rose 16%. As the pandemic eases and the economy recovers in 2021, Mastercard could be looking at a strong year ahead.
What is PayPal's partnership with Visa?
In particular, the partnership will enable consumers and small-medium enterprises to move their money faster through PayPal and Visa Direct Capabilities. Also, the rapid shift to e-commerce also brings significant value to Visa.
Is Mastercard a crypto?
This made it the first native crypto platform to issue Mastercard payment cards. Meanwhile, Mastercard also has a broad range of market-leading services, from insights and analytics to cybersecurity tools. This allows the company to support its partners’ evolving needs in a rapidly changing world. In June, Mastercard announced an agreement ...
Do Visa and Mastercard pay dividends?
They each rake in billions in annual revenues and profits even during unprecedented times like this. As a result, it’s not surprising to know that they regularly pay dividends and engage in share buybacks. They remain a favorite of many investors including Berkshire Hathaway ( NYSE: BRK.A ). But if you were going to choose one, which of these titans is the better financial stock to add to your portfolio today?
Does Mastercard have Finicity?
In June, Mastercard announced an agreement to acquire Finicity, a leading provider of real-time access to financial data and insights, to bolster its open banking platform. By incorporating this into Mastercard’s operations, the company expects to further enhance and grow its banking reach and capabilities.
Is Mastercard a global company?
Payment processor Mastercard has a strong presence globally with a coverage of more than 210 countries. The company’s stock was trading higher Thursday after the company posted earnings that beat Wall Street’s estimates in its fourth quarterly earnings.
Is e-commerce important for Visa?
Also, the rapid shift to e-commerce also brings significant value to Visa. This is because its share of digital commerce is at least three times greater than the physical point of sale. Throughout the pandemic, the company could continue to leverage its expertise, innovative digital solutions, and analytics to support clients in understanding consumer behavior and expectations. This would undoubtedly allow businesses to unlock new opportunities, a win-win for both Visa and its clients.
What is the most exciting thing about Mastercard?
What’s really exciting about Mastercard from a shareholder’s standpoint is that it’s been investing in entirely new technologies. For instance, the company has developed a service called AI Express. It uses artificial intelligence to alert businesses to payments that could be fraudulent.
Why is Visa an attractive investment?
Visa represents an attractive investment opportunity because it’s actively pursuing growth opportunities right now. For instance, it’s increasing its mobile payment offerings through a new collaborative program with PayPal.
What are the names of the two credit card companies?
When you hear the term “credit card,” two names might instantly leap to mind: Mastercard ( NYSE: MA) and Visa ( NYSE: V). Of course, they represent two of the most famous payment processing brands on the planet. But are they really worth your money? And, if you must choose between the two, which of these companies should you actually invest in?
Is Mastercard more attractive than Visa?
For many people, Mastercard may be a little more attractive now because, over the past year or so, the company has pulled ahead in the stock price growth race. Interestingly, in years past, Visa and Mastercard had always been neck and neck in this competition. Mastercard’s embrace of artificial intelligence and other exciting new technologies may account for its recent gains.
Is Visa Europe a separate company?
Visa Europe had previously been a separate company that only licensed the Visa name. On the (somewhat) negative side, Mastercard is currently outpacing Visa in terms of growth. From the end of third quarter 2017 to the end of third quarter 2018, Mastercard shares rose 41 percent while Visa’s went up by just 27 percent.
Is payment processing stock good?
Overall, payment processing stocks make for outstanding investment opportunities. The concept of buying now and paying later is so attractive and convenient that it’s sure to remain popular for a long time to come.
Is a credit card safe?
When you’re out on the town, a credit card is a safe and reliable way to pay for items. Similarly, when you’re looking to invest in stocks, a credit card company has the potential to be a way to grow your wealth. When you hear the term “credit card,” two names might instantly leap to mind: Mastercard ( NYSE: MA) and Visa ( NYSE: V).
What is the difference between a Visa and a Mastercard?
The key differences between Visa and Mastercard lie with their mix of debit/credit card transactions, geographic exposure and relative emphasis on the B2C/B2B markets.
What are the risk factors for Visa and Mastercard?
The key risk factors for Visa and Mastercard are a slower-than-expected recovery in cross-border volume, and a longer-than-expected time for transaction volume to be restored to pre-pandemic levels.
What is value and moat stock?
Asia Value & Moat Stocks is a research service for value investors searching for attractive Asia-listed investment opportunities with a huge gap between price and intrinsic value, leaning towards both deep value balance sheet bargains (i.e. buying assets at a discount e.g. net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e. buying earnings power at a discount in great companies like "Magic Formula" stocks, high quality businesses, hidden champions and wide moat compounders).
When will Mastercard report its financial results?
Mastercard reported the company's 4Q 2020 financial results on January 28, 2021. Similar to Visa, Mastercard delivered a QoQ improvement in its financial performance in the most recent quarter, and its quarterly revenue & earnings surprised on the upside when compared with consensus estimates.
Why is Visa's bottom line so low?
The key reason for Visa's lower top line and bottom line on a YoY basis in the most recent quarter is a decrease in cross-border volume, as a result of travel restrictions imposed in various parts of the world to combat COVID-19. Visa, Inc's total cross-border volume and cross-border volume excluding transaction conducted within Europe fell by -33% YoY and -21% YoY, respectively in 1Q FY 2021.
Is Mastercard a debit card?
As mentioned in the preceding section, Mastercard has a smaller debit business as compared to Visa, and debit programs accounted for a relatively lower proportion of the company's gross dollar volume vis-a-vis Visa.
Is MasterCard expanding its debit business?
It is also noteworthy that Mastercard is expanding its debit business. MA disclosed at the company's recent results briefing that its "debit share in the U.K. from low single digits to approximately one-third of the market" following recent wins. Mastercard also highlighted that it will be "the network partner for the Citi ( C) Plex account on Google Pay" which "will include a digital debit Mastercard." This might be an indirect endorsement of Visa's views (highlighted in the preceding section) that debit cards could see structural growth post-Covid.
Can I buy both stocks in equal amounts?
Fortunately, as an investor, you can just buy both stocks in equal amounts in order to play the strong secular trends in card and digital payments, which saves you from having to worry about whether you've chosen the right one.
Is Visa the same as Mastercard?
Though they have very similar capabilities and take rates, they do differ significantly in scale: Visa is currently almost twice the size of Mastercard on a payment volume basis. While that affords Visa higher margins, it also means that Mastercard has more potential to grow.
Is MasterCard bigger than Visa?
Mastercard is nearly half the size of Visa, but it's growing faster. In fact, Mastercard's transaction growth was 14.4% last quarter, while Visa's was only 6.6% on a constant-currency basis. However, Visa appears to be doing a better job of monetizing its traffic and garnering revenue from other data-processing services, ...
What is a mastercard network?
The company operates a unique and proprietar y global payments network that links issuers and acquirers around the globe to facilitate the switching of transactions, permitting account holders to use a Mastercard product at millions of acceptance locations worldwide. Its core network facilitates an efficient and secure means for receiving payments, a convenient payment method for consumers to access their funds and a channel for businesses to receive insight that is derived from its network. Mastercard authorizes, clears, and settles transactions through its core network for issuer customers in more than 150 currencies and in more than 210 countries and territories.
Where is Mastercard headquartered?
Founded in 1966 and headquartered in Purchase, NY , Mastercard Inc. is a leading global payment solutions company that provides an array of services in support of the credit, debit, mobile, web-based and contactless payments, and other related electronic payment programs to financial institutions and other entities.
What are the different grades for stocks?
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
What is value scorecard?
The Value Scorecard identifies the stocks most likely to outperform based on its valuation metrics. This list of both classic and unconventional valuation items helps separate which stocks are overvalued, rightly lowly valued, and temporarily undervalued which are poised to move higher.
2 Top Financial Stocks to Watch For Strong Growth
Mastercard (MA) Stock
Visa (V) Stock
Bottom Line
- Mastercard (NYSE: MA) and Visa (NYSE: V) have a lot in common. Between them, they dominate the payment processing market. The pandemic-led lockdowns and social distancing measures may have hurt spending, thus impacting the payment of these network giants. However, more are people avoiding using cash to make payment coupling with the easing of lockdowns. Therefore, …