Capital One Financial Corporation (COF) vs Mastercard Incorporated (MA)

Capital One Financial Corporation and Mastercard Incorporated are both Credit Services companies. Mastercard Incorporated is the larger, with a market value of $494.4B against $122.0B — 4.1× the size. Capital One Financial Corporation trades at the lower P/E: 12.4× against 31.2×. Capital One Financial Corporation grew revenue faster over the last twelve months: 37.3% against 16.0%. Mastercard Incorporated has the higher net margin (46.3% vs 13.0%) and the higher return on invested capital (70.5% vs 7.92%). Both pay a dividend; Capital One Financial Corporation yields more (1.83% vs 0.54%). Across the 22 metrics below, Capital One Financial Corporation leads on 12 and Mastercard Incorporated on 10.

Valuation

Metric COF MA Credit Services median
P/E 12.39 31.17 9.64
P/S 1.58 14.27 0.87
P/B 1.09 89.31 1.16
Price to free cash flow 4.18 31.34 2.99
EV/EBITDA n/m 21.32 9.58
EV/Sales 1.44 14.63 2.32
Earnings yield 8.07% 3.21% 6.72%
Free cash flow yield 23.91% 3.19% 12.33%

Profitability

Metric COF MA Credit Services median
Gross margin 78.81% 100.00% 77.13%
Operating margin 0.00% 58.33% 0.34%
Net margin 12.98% 46.34% 9.25%
Free cash flow margin 37.74% 45.53% 13.03%
Return on equity 9.09% 241.20% 8.49%
Return on assets 1.53% 29.80% 2.29%
Return on invested capital 7.92% 70.46% 4.09%

Growth

Metric COF MA Credit Services median
Revenue growth (TTM) 37.26% 16.01% 4.62%
EPS growth (last fiscal year) (65.23%) 18.93% —
Revenue growth, 5-year CAGR 16.96% 16.47% 9.13%
Net income growth, 5-year CAGR (1.69%) 18.48% 0.00%

Health

Metric COF MA Credit Services median
Debt to equity 0.39 4.40 0.68
Current ratio 1.02 1.06 1.55
Net debt to EBITDA 0.00 0.34 0.13

Dividend

Metric COF MA Credit Services median
Dividend yield 1.83% 0.54% 3.34%
Payout ratio 0.18 0.20 0.00

Size

Metric COF MA Credit Services median
Market cap 121.97b 494.44b 872.19m

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