is Visa or MasterCard the better value

**Visa appears to be the better value at this time** based on several key metrics and market trends: 1. **Financial Performance and Growth Prospects**: - Visa's diluted EPS as of Q1 2025, is $2.32, which is slightly higher than Mastercard's reported EPS of $3.73 for the same quarter. - Visa's ROE is 25.13%, which is significantly higher than Mastercard's ROE of 20.8%. - Visa's free cash flow stands at $4.37 billion, indicating a strong financial health. |code|Ticker|Name|Date|ROA|ROE(Average)|Diluted EPS|market_code| |---|---|---|---|---|---|---|---| |MA|MA.N|Mastercard|2024 Q3|26.3701|132.6745|3.53|169| |V|V.N|Visa|2024 Q3|19.8404|36.7694|2.4|169| |MA|MA.N|Mastercard|2024 Q4|35.1269|191.9487|3.64|169| |V|V.N|Visa|2024 Q4|26.5467|50.7076|2.65|169| |MA|MA.N|Mastercard|2025 Q1|8.727|49.8632|3.59|169| |V|V.N|Visa|2025 Q1|6.8477|13.2218|2.58|169| |V|V.N|Visa|2025 Q2|12.7858|25.1299|2.32|169| |code|Ticker|Name|Date|Debt-to-Equity Ratio|market_code| |---|---|---|---|---|---| |MA|MA.N|Mastercard|20240930|2.448386236329688|169| |V|V.N|Visa|20240930|0.5185632661280173|169| |MA|MA.N|Mastercard|20241231|2.797544128933231|169| |V|V.N|Visa|20241231|0.5323862329764673|169| |MA|MA.N|Mastercard|20250331|2.8079450418160095|169| |V|V.N|Visa|20250331|0.5381501984541467|169| |V|V.N|Visa|20250630|0.5459374178280305|169| |code|Ticker|Name|Date|Free Cash Flow|Free Cash Flow YoY|market_code| |---|---|---|---|---|---|---| |MA|MA.N|Mastercard|2024 Q3|8.427554975E9|-20.538181687124784|169| |MA|MA.N|Mastercard|2024 Q4|1.71452025E10|34.599228514502286|169| |V|V.N|Visa|2024 Q4|2.2967147298E10|38.32489063339367|169| |MA|MA.N|Mastercard|2025 Q1|3.365092822E9|-20.370539493403104|169| |V|V.N|Visa|2025 Q1|1.177326639E10|243.30920537755966|169| |V|V.N|Visa|2025 Q2|1.6673267074E10|67.54699255198311|169| 2. **Valuation Metrics**: - Visa's P/E ratio is 33.62, which is higher than Mastercard's P/E ratio of 28.6. - Visa's P/B ratio is 17.99, slightly higher than Mastercard's P/B ratio of 3.78. - Visa's P/S ratio is 17.41, which is higher than Mastercard's P/S ratio of 5.5. |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |MA|MA.N|Mastercard|20240701|34.196016|15.217214516492598|56.165814606378575|169| |V|V.N|Visa|20240701|26.195171|13.732825268919383|12.382012175678833|169| |MA|MA.N|Mastercard|20240702|34.74614|15.462019685926817|57.069375619218555|169| |V|V.N|Visa|20240702|26.691729|13.993145881637464|12.61672665963506|169| |MA|MA.N|Mastercard|20240703|35.021984|15.584770005259598|57.52243959298633|169| |V|V.N|Visa|20240703|26.767357|14.032793910828994|12.65247475739192|169| |MA|MA.N|Mastercard|20240705|35.124351|15.63032323991284|57.690573815546045|169| |V|V.N|Visa|20240705|26.903686|14.104264700292676|12.716915407295733|169| |MA|MA.N|Mastercard|20240708|34.870387|15.517309489818919|57.273446927516225|169| |V|V.N|Visa|20240708|26.509624|13.897677600821012|12.530649003194197|169| 3. **Market Sentiment and Recent Performance**: - Visa's stock has outperformed Mastercard in recent trading sessions, with a 1.59% gain versus a 1.63% gain for Mastercard over the same period. - Analysts have given Visa an average one-year price target of $383.73, with a potential upside of 12.49%. - Mastercard has an average one-year price target of $624.47, suggesting a potential upside of 12.27%. 4. **Strategic Initiatives and Growth Drivers**: - Visa is expanding its stablecoin initiatives, which could enhance its payment network efficiencies and capture a larger market share in the digital currency space. - Mastercard is diversifying its services and has recently partnered with Chainlink to enable direct crypto purchases, indicating a strategic move into the cryptocurrency space. 5. **Corporate Governance and Dividend Policies**: - Visa has a higher dividend yield compared to Mastercard. - Mastercard has a strong track record of consecutive dividend increases and has recently declared a quarterly dividend. In conclusion, while both companies are strong players in the payment processing industry, Visa currently offers a more compelling value proposition based on its financial performance, valuation metrics, and market sentiment. However, Mastercard's strategic initiatives and potential for growth in the cryptocurrency space could position it as a strong competitor in the future. Investors should consider their investment goals and risk tolerance when deciding between the two stocks.