WallStSmart

Mastercard Inc (MA)vsVisa Inc. Class A (V)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Visa Inc. Class A generates 26% more annual revenue ($41.39B vs $32.79B). V leads profitability with a 50.2% profit margin vs 45.7%. MA appears more attractively valued with a PEG of 1.63. MA earns a higher WallStSmart Score of 70/100 (B).

MA

Strong Buy

70

out of 100

Grade: B

Growth: 8.0Profit: 10.0Value: 10.0Quality: 6.0
Piotroski: 6/9Altman Z: 4.08

V

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 10.0Value: 9.3Quality: 6.5
Piotroski: 4/9Altman Z: 1.84
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MAUndervalued (+34.7%)

Margin of Safety

+34.7%

Fair Value

$752.45

Current Price

$488.47

$263.98 discount

UndervaluedFair: $752.45Overvalued
VUndervalued (+18.7%)

Margin of Safety

+18.7%

Fair Value

$368.57

Current Price

$299.02

$69.55 discount

UndervaluedFair: $368.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MA6 strengths · Avg: 9.7/10
Market CapQuality
$453.80B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
209.9%10/10

Every $100 of equity generates 210 in profit

Profit MarginProfitability
45.7%10/10

Keeps 46 of every $100 in revenue as profit

Operating MarginProfitability
57.7%10/10

Strong operational efficiency at 57.7%

Altman Z-ScoreHealth
4.0810/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

V5 strengths · Avg: 9.6/10
Market CapQuality
$597.90B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
53.9%10/10

Every $100 of equity generates 54 in profit

Profit MarginProfitability
50.2%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
68.3%10/10

Strong operational efficiency at 68.3%

Free Cash FlowQuality
$6.40B8/10

Generating 6.4B in free cash flow

Areas to Watch

MA4 concerns · Avg: 2.8/10
PEG RatioValuation
1.634/10

Expensive relative to growth rate

P/E RatioValuation
30.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
56.5x2/10

Trading at 56.5x book value

Debt/EquityHealth
2.451/10

Elevated debt levels

V4 concerns · Avg: 4.0/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

P/E RatioValuation
29.1x4/10

Moderate valuation

Price/BookValuation
14.9x4/10

Trading at 14.9x book value

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Comparative Analysis Report

WallStSmart Research

Bull Case : MA

The strongest argument for MA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 45.7% and operating margin at 57.7%. Revenue growth of 17.6% demonstrates continued momentum.

Bull Case : V

The strongest argument for V centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 50.2% and operating margin at 68.3%. Revenue growth of 14.6% demonstrates continued momentum.

Bear Case : MA

The primary concerns for MA are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.45 is elevated, increasing financial risk.

Bear Case : V

The primary concerns for V are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

MA profiles as a growth stock while V is a mature play — different risk/reward profiles.

MA carries more volatility with a beta of 0.84 — expect wider price swings.

MA is growing revenue faster at 17.6% — sustainability is the question.

V generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

MA scores higher overall (70/100 vs 68/100), backed by strong 45.7% margins and 17.6% revenue growth. V offers better value entry with a 18.7% margin of safety. Both earn "Strong 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.

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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Visa Inc. Class A

FINANCIAL SERVICES · CREDIT SERVICES · USA

Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.

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