Encore Capital Group Inc (ECPG)vsMastercard Inc (MA)
ECPG
Encore Capital Group Inc
$98.56
+0.63%
FINANCIAL SERVICES · Cap: $2.06B
MA
Mastercard Inc
$569.19
+0.68%
FINANCIAL SERVICES · Cap: $498.62B
Smart Verdict
WallStSmart Research — data-driven comparison
Mastercard Inc generates 1745% more annual revenue ($35.08B vs $1.90B). MA leads profitability with a 46.3% profit margin vs 15.9%. ECPG appears more attractively valued with a PEG of 0.17. ECPG earns a higher WallStSmart Score of 83/100 (A-).
ECPG
Exceptional Buy83
out of 100
Grade: A-
MA
Strong Buy72
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 38.0%
Every $100 of equity generates 29 in profit
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 290 in profit
Keeps 46 of every $100 in revenue as profit
Strong operational efficiency at 61.1%
Safe zone — low bankruptcy risk
Earnings expanding 22.1% YoY
Areas to Watch
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 88.9x book value
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ECPG
The strongest argument for ECPG centers on PEG Ratio, P/E Ratio, Operating Margin. Profitability is solid with margins at 15.9% and operating margin at 38.0%. Revenue growth of 11.3% demonstrates continued momentum.
Bull Case : MA
The strongest argument for MA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 46.3% and operating margin at 61.1%. Revenue growth of 14.1% demonstrates continued momentum.
Bear Case : ECPG
The primary concerns for ECPG are Free Cash Flow, Altman Z-Score, Debt/Equity. Debt-to-equity of 4.52 is elevated, increasing financial risk.
Bear Case : MA
The primary concerns for MA are P/E Ratio, Price/Book, Debt/Equity. Debt-to-equity of 4.39 is elevated, increasing financial risk.
Key Dynamics to Monitor
ECPG carries more volatility with a beta of 1.28 — expect wider price swings.
MA is growing revenue faster at 14.1% — sustainability is the question.
MA generates stronger free cash flow (3.3B), providing more financial flexibility.
Monitor CREDIT SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ECPG scores higher overall (83/100 vs 72/100), backed by strong 15.9% margins and 11.3% revenue growth. 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.
Encore Capital Group Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Encore Capital Group, Inc., a specialty finance company, offers debt recovery solutions and other related services to consumers in a variety of financial assets worldwide. The company is headquartered in San Diego, California.
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.
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