Visa and Mastercard are both well-known global brands with strong name recognition and reputation, and both are leaders in the financial space.
They are also somewhat similar in regards to their stocks. As The Motley Fool noted, Mastercard went public in 2006, and Visa went public in 2008. Both their stocks skyrocketed, rising about 2,000% in value, The Motley Fool added.
So which one is the best investment?
According to The Motley Fool, both companies are worth taking a look at, and both are worth owning. Here’s a comparison of their recent performance.
Visa
- Year-to-date: 6.29%
- Past year: 20.60%
- Past month: -1.94%
On April 23, Visa released its second quarter earnings, which beat analysts’ expectations.
Ryan McInerney, CEO, Visa, said in the release, “Overall payments volume grew 8% and cross-border volume grew 16%, driven by stable consumer spending.”
“As we head into the second half of the year and beyond, we remain focused on the trillions of dollars of opportunity in consumer payments and new flows, and on continuing to deepen our partnerships with clients around the world by adding value across our network of networks,” he added.
Mastercard
- Year-to-date: 9.53%
- Past year: 26%
- Past month: -3.08%
As Seeking Alpha reported on April 24, analysts expect that Mastercard will see revenue increase above the company’s medium- and long-term growth rates.
“This would be a further pickup in the company’s business,” Seeking Alpha added.
It noted that the company — one of the largest electronic payment networks globally — “has achieved impressive revenue and earnings growth rates, surpassing its closest rivals.”
It’s a Tie
“While shares of both trade at high multiples, these figures should soon look like bargains for anyone with a multiyear investment window. If you want to buy into blue chip businesses with long runways for sustainable growth, consider buying both,” The Motley Fool advised.
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Data is accurate as of April 25, 2024.