Visa vs. Mastercard: Which Will Make You Richer?
Key Points
Visa and Mastercard have each built up strong network effects thanks to broad adoption and wide acceptance.
These two extremely profitable businesses don’t trade at cheap valuations.
- 10 stocks we like better than Mastercard ›
It's business as usual for the two leading forces in the global payments landscape.
Visa (NYSE: V) reported year-over-year revenue growth of 15% in Q1 2026 (ended Dec. 31), with diluted earnings per share (EPS) up 17%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Meanwhile, Mastercard (NYSE: MA) had a better showing. Its top line in Q4 2025 (ended Dec. 31) increased by 18%. And diluted EPS soared 24%.
Between these two financial stocks, which one will make you richer over the long term?
Image source: Getty Images.
Two high-quality companies
Both Visa and Mastercard possess powerful network effects, supported by incredible adoption of their branded cards among consumers and due to strong acceptance by merchants. They're also incredibly profitable.
Because it's a smaller business, Mastercard naturally has a bigger growth opportunity. Assuming that one day in the future, its market share starts to approach Visa's, Mastercard's revenue and earnings are in position to expand at a faster clip than its larger peer.
Investors can own both
Neither of these stocks provides investors with a good value opportunity. Visa and Mastercard trade at price-to-earnings ratios of 32.8 and 34.8, respectively. These multiples have come down in the past several months, but they don't give a margin of safety.
Mastercard's growth potential is greater, but it's also a more expensive stock. Investors who are willing to look past valuation ratios and that want to own these successful companies could simply just buy both.
Should you buy stock in Mastercard right now?
Before you buy stock in Mastercard, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Mastercard wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $450,256!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,171,666!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 2, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard and Visa. The Motley Fool has a disclosure policy.
Recommended Articles
