Mastercard Incorporated (MA) vs Visa Inc. (V)

Mastercard Incorporated and Visa Inc. are both Credit Services companies. Visa Inc. is the larger, with a market value of $686.4B against $494.4B — 1.4× the size. Visa Inc. trades at the lower P/E: 30.1× against 31.2×. Mastercard Incorporated grew revenue faster over the last twelve months: 16.0% against 14.4%. Visa Inc. has the higher net margin (50.8% vs 46.3%) and the lower return on invested capital (38.0% vs 70.5%). Both pay a dividend; Visa Inc. yields more (0.78% vs 0.54%). Across the 22 metrics below, Mastercard Incorporated leads on 11 and Visa Inc. on 11.

Valuation

Metric MA V Credit Services median
P/E 31.17 30.09 9.64
P/S 14.27 14.71 0.87
P/B 89.31 18.88 1.16
Price to free cash flow 31.34 31.14 2.99
EV/EBITDA 21.32 23.41 9.58
EV/Sales 14.63 14.91 2.32
Earnings yield 3.21% 3.32% 6.72%
Free cash flow yield 3.19% 3.21% 12.33%

Profitability

Metric MA V Credit Services median
Gross margin 100.00% 100.00% 77.13%
Operating margin 58.33% 60.68% 0.34%
Net margin 46.34% 50.78% 9.25%
Free cash flow margin 45.53% 47.23% 13.03%
Return on equity 241.20% 62.36% 8.49%
Return on assets 29.80% 23.22% 2.29%
Return on invested capital 70.46% 38.04% 4.09%

Growth

Metric MA V Credit Services median
Revenue growth (TTM) 16.01% 14.39% 4.62%
EPS growth (last fiscal year) 18.93% 4.83% —
Revenue growth, 5-year CAGR 16.47% 12.86% 9.13%
Net income growth, 5-year CAGR 18.48% 13.04% 0.00%

Health

Metric MA V Credit Services median
Debt to equity 4.40 0.68 0.68
Current ratio 1.06 0.99 1.55
Net debt to EBITDA 0.34 0.13 0.13

Dividend

Metric MA V Credit Services median
Dividend yield 0.54% 0.78% 3.34%
Payout ratio 0.20 0.22 0.00

Size

Metric MA V Credit Services median
Market cap 494.44b 686.42b 872.19m

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