Bread Financial Holdings, Inc. (BFH)vsMastercard Inc (MA)
BFH
Bread Financial Holdings, Inc.
$75.11
+0.83%
FINANCIAL SERVICES · Cap: $3.40B
MA
Mastercard Inc
$502.76
+0.77%
FINANCIAL SERVICES · Cap: $445.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Mastercard Inc generates 1160% more annual revenue ($32.79B vs $2.60B). MA leads profitability with a 45.7% profit margin vs 19.9%. BFH appears more attractively valued with a PEG of 0.71. BFH earns a higher WallStSmart Score of 82/100 (A-).
BFH
Exceptional Buy82
out of 100
Grade: A-
MA
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+85.2%
Fair Value
$512.93
Current Price
$75.11
$437.82 discount
Margin of Safety
+33.1%
Fair Value
$751.54
Current Price
$502.76
$248.78 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 735.0% YoY
Growing faster than its price suggests
18.5% revenue growth
Mega-cap, among the largest globally
Keeps 46 of every $100 in revenue as profit
Strong operational efficiency at 57.7%
Safe zone — low bankruptcy risk
17.6% revenue growth
Earnings expanding 24.2% YoY
Areas to Watch
Elevated debt levels
Distress zone — elevated risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of 2.1% — below average capital efficiency
Trading at 58.1x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : BFH
The strongest argument for BFH centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 19.9% and operating margin at 16.9%. Revenue growth of 18.5% demonstrates continued momentum.
Bull Case : MA
The strongest argument for MA centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 45.7% and operating margin at 57.7%. Revenue growth of 17.6% demonstrates continued momentum.
Bear Case : BFH
The primary concerns for BFH are Debt/Equity, Altman Z-Score.
Bear Case : MA
The primary concerns for MA are PEG Ratio, P/E Ratio, Return on Equity. Debt-to-equity of 2.45 is elevated, increasing financial risk.
Key Dynamics to Monitor
BFH carries more volatility with a beta of 1.20 — expect wider price swings.
BFH is growing revenue faster at 18.5% — sustainability is the question.
MA generates stronger free cash flow (4.8B), providing more financial flexibility.
Monitor CREDIT SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BFH scores higher overall (82/100 vs 70/100), backed by strong 19.9% margins and 18.5% revenue growth. MA offers better value entry with a 33.1% margin of safety. Both earn "Exceptional Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Bread Financial Holdings, Inc.
FINANCIAL SERVICES · CREDIT SERVICES · USA
Bread Financial Holdings Inc. provides lending and payment technology solutions to customers and consumer-based industries in North America. The company is headquartered in Columbus, Ohio.
Visit Website →Mastercard Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Mastercard Incorporated is an American multinational financial services corporation headquartered in the Mastercard International Global Headquarters in Purchase, New York. The Global Operations Headquarters is located in O'Fallon, Missouri, a municipality of St. Charles County, Missouri. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard brand debit, credit and prepaid cards to make purchases. Mastercard Worldwide has been a publicly traded company since 2006.
Visit Website →Compare with Other CREDIT SERVICES Stocks
Want to dig deeper into these stocks?