By
Tolu Ajiboye
April 8th, 2024
Both Visa and Mastercard are strong market players. And it is up to you to decide which one is a better buy now. In the long run, both seem to be a good way to invest.
Despite some not very positive news about new cases, the world hopes that the coronavirus pandemic is close to its end, and now analysts are estimating how different companies managed to survive in the crisis. Here we’ll take a look at stocks of the leading financial services companies, Mastercard Inc (NYSE: MA) and Visa Inc (NYSE: V).
Both companies are pretty much the go-to standards when it comes to international remittance. A week ago, both Mastercard and Visa stocks were in the red. However, now, their trajectories seem to tell different stories, which makes it more difficult for investors to choose a better buy.
Mastercard Stocks: to “Performance” from “Outperformance”
In the past 90 days, Mastercard has been the subject of 19 research reports, demonstrating strong analyst interest in this stock. And companies gave different estimates and different expectations on MA shares. For example, asset management and analytics company Oppenheimer has recently downgraded Mastercard to “perform” from “outperform.” Mastercard stock has climbed less than 1% in the last month and 12.44% in the last year. But in general, it has lost over 2% in 2020.
According to analysts’ consensus price target of $324.56, Mastercard has a potential upside of 5.8% from its current price of $306.88. MA stock’s average rating score is 2.86 out of 5 and is based on 25 buy ratings, 4 hold ratings, and no sell ratings.
On Monday, Mastercard stock closed in the green, adding $2.44 to close at $306.88 per share. After hours, it declined by 0.29%. The market cap is $305.67 billion.
Mastercard Acquires Finicity
On June 23, Mastercard announced it was acquiring Finicity, a leading North American provider of real-time access to financial data and insights. The sum of the deal totaled $825 million. In addition, Finicity’s existing shareholders might earn-out up to an additional $160 million, if performance targets are met.
According to Mastercard, the agreement will make it a strong open banking partner for fintech and financial institutions as well as foster its commitment to the protection of data and consumer-centric information practices.
Visa Expanding in Europe
Visa’s latest closing price was $197.97. After hours, it lost 0.19%. Its day range varied from $195.82 to $200.15, the market cap totaled $415.07 billion. The annual change of Visa stock is positive 42.41%.
Meanwhile, Oppenheimer is maintaining Visa stock as “outperforming”. It has even raised the price target for Visa to $202 per share from $190 a share. Oppenheimer believes that Visa will regain market share and sees purchase volume accelerating in the European market.
Besides, Visa is penetrating deeper into blockchain-related activities. In May, the company Visa has filed a patent application to the U.S. Patent and Trademark Office (USPTO) to create digital currency on a centralized computer using blockchain technology.
So, we see that both Visa and Mastercard are strong market players, And it is up to you to decide which one is a better buy for you. In the long run, both seem to be a good way to invest.