Why Visa Offers Better Risk-Adjusted Returns Than Mastercard

Summary:

• Visa and Mastercard dominate the cashless economy with similar business models.
• Mastercard’s aggressive growth strategy and innovation lead to a slightly higher growth outlook.
• From a valuation perspective, Mastercard is trading at a 20% premium over Visa’s shares.
• Both companies are good inflation hedges, and the increased money supply acts as a natural tailwind.
• However, Visa offers a better risk-adjusted in the near term compared to Mastercard.

It’s been over half a year since I last wrote an article comparing the two major global payment processors, Mastercard (NYSE:MA) and Visa (NYSE:V), with the objective of distinguishing the better investment.

Both companies operate in the

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