Both $V (-0,03%)
visas and $MA (-0,42%)
Mastercard will publish their quarterly figures next week - and from a fundamental point of view, the two payment payment giants are still in a really close race.
Visa - strong profits, strong margins
Visa really delivered in the last quarter really delivered:
Sales increased by 14 % to 10.2 billion US dollarsearnings per share rose by as much as 23 % to 2.98 US dollars.
The transaction volume also looks good - up up 8 % worldwidedriven primarily by strong foreign sales.
With a gross margin of almost 98 % and a return on equity of around 52 % Visa is one of the most efficient companies in the fintech sector.
In addition, it has an extremely solid balance sheet - debt-to-equity just 0,07 - and a moderate P/E ratio of around 31.
In short: Visa is operationally well positioned and remains one of the most stable fintech stocks on the market.
Mastercard - solid growth, but more expensive valuation
Mastercard publishes on October 30 analysts expect EPS of 4.30 US dollarsi.e. around +10,5 % compared to the previous year, with sales of 8.5 billion US dollarsalso +14 % YoY.
The free cash flow is with 13.6 billion US dollars in 2024 is also strong.
But - the share is valued significantly higher:
P/E ratio around 40 and a higher debt with a debt-to-equity of 0,34.
Nevertheless, Mastercard scores with global presence in over 210 countries and pure innovation - for example with biometric security and contactless payment.
Many analysts remain bullishwith an average price target of 652 US dollars and a rating of "Strong Buy"
Comparison & Conclusion
Key figure: Visa (V) vs Mastercard (MA) :Sales growth (YoY), FCF (YoY) etc
In a nutshell:
Visa convinces with stability, high profitability and a defensive valuation - ideal for long-term investors.
Mastercard offers slightly more growthbut at a higher price and with slightly higher risk.
Both clearly benefit from the megatrend of digital payments - but in the current environment with high cost pressure and increasing regulation seems Visa is fundamentally somewhat better positioned.
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