Best Investment Visa or Mastercard? - Should You Invest Now?

Summary

The video script discusses Visa's recent earnings report, which, despite showing a 10% revenue increase and a 12% rise in adjusted earnings, was deemed disappointing due to a 4% stock price drop. It compares Visa and MasterCard's business models, growth vectors, and potential risks, highlighting their duopoly in the credit card industry. The script also explores the companies' financial metrics, dividend growth, and valuation, concluding that while MasterCard shows slightly better financial performance, Visa offers better value. The analysis suggests considering both companies for investment but advises not to count them as separate positions in a portfolio.

Takeaways

• 📉 Visa's stock price dropped by almost 4% on the day of their earnings report, despite a 10% increase in revenue and a 12% increase in adjusted earnings.
• 🤔 The presenter questions the market's reaction to Visa's earnings, suggesting that the disappointment might not align with the reported growth figures.
• 💡 The business model of Visa and MasterCard is based on being payment processors, with revenue generated from merchant fees rather than carrying consumer debt.
• 🌐 Both Visa and MasterCard are considered to have a strong position in the market due to their global recognition and widespread acceptance by merchants.
• 📈 Key growth drivers for Visa and MasterCard include the shift from cash to electronic payments, increased consumer spending, and currency conversion fees during travel.
• 🛑 A potential risk for these companies is the ongoing antitrust investigations and merchant dissatisfaction with the high fees charged for transactions.
• 📊 The script suggests using a tool like DSR to compare stocks and analyze various metrics such as revenue growth, earnings growth, and dividend growth.
• 🏆 MasterCard showed slightly better performance in terms of revenue, earnings, and dividend growth over the past five years compared to Visa.
• 💰 Visa has a larger market capitalization and processes more transactions, positioning it as a market leader ahead of MasterCard.
• 📈 MasterCard has a higher PE ratio and forward PE ratio, indicating that investors might be paying a steeper price for its shares compared to Visa.
• 💼 The presenter concludes that both Visa and MasterCard have strong business models and could be suitable for an investor's portfolio, with a slight preference for MasterCard based on the financial metrics presented.

Q & A

Why were Visa's reported earnings considered disappointing despite showing growth?

Visa's reported earnings were considered disappointing because the stock price dropped by almost 4% on the earnings day, indicating that the market's expectations were not met despite the revenue increase of 10% and adjusted earnings increase of 12%.

What is the primary business model of Visa and MasterCard?

Visa and MasterCard primarily operate as payment processors. They facilitate transactions between consumers and merchants, charging fees to merchants and not carrying consumer debt, which makes their business model quite robust and less risky.

How do Visa and MasterCard benefit from the shift from cash to electronic payments?

Visa and MasterCard benefit from the shift to electronic payments as more transactions mean more fees collected from merchants. This trend also includes currency conversion fees when consumers travel, further increasing their revenue.

What are the growth vectors for Visa and MasterCard?

The main growth vectors for Visa and MasterCard are the global shift from cash to electronic payments, increased consumer spending, and travel which leads to more transactions and currency conversion fees.

What is the potential downside of Visa and MasterCard's business model?

A potential downside is the reliance on merchant fees, which can be subject to regulatory changes and antitrust investigations. Merchants may also push back against high fees, which could slow growth.

How does the script differentiate between Visa and MasterCard in terms of financial performance?

The script uses the DSR stock comparison tool to analyze various financial metrics such as revenue growth, earnings growth, and dividend growth, showing slight advantages for MasterCard in terms of revenue and earnings growth over the past five years.

What valuation metrics are used to compare Visa and MasterCard?

Valuation metrics such as market capitalization, PE ratio, and forward PE ratio are used to compare the companies. The script suggests that Visa might be a slightly better deal in terms of valuation compared to MasterCard.

Why might an investor consider both Visa and MasterCard in their portfolio?

An investor might consider both Visa and MasterCard in their portfolio due to their similar yet slightly differentiated performance metrics, robust business models, and the potential to benefit from the same growth vectors in the payments industry.

What is the significance of the dividend triangle in the analysis of Visa and MasterCard?

The dividend triangle, which includes revenue growth, earnings growth, and dividend growth, is significant as it provides a holistic view of the company's financial health and growth potential over time.

How does the script address the comparison with American Express and Discovery?

The script briefly compares Visa and MasterCard with American Express and Discovery, noting that the latter two carry consumer debt which introduces additional risk factors. It also points out that their dividend growth and overall financial performance have been less robust compared to Visa and MasterCard.

What is the final recommendation given in the script regarding the choice between Visa and MasterCard?

The script concludes that both Visa and MasterCard are strong companies and could coexist in an investor's portfolio. If choosing one, an investor might consider MasterCard for slightly better financial performance or Visa for its market leadership and slightly cheaper valuation.

Outlines

00:00

📉 Disappointment in Visa's Earnings Report

The script begins with a discussion on Visa's recent earnings report, which was disappointing despite a 10% increase in revenue and a 12% rise in adjusted earnings. Key drivers showed growth in the single to double digits, yet the stock price dropped by nearly 4%. The video will compare Visa and MasterCard, analyzing their business models, growth potentials, and risks. It will also explore the use of the DSR stock comparison tool to determine which credit card company might be a better investment, considering American Express and Discovery as well.

05:01

🔍 Analyzing the Business Models of Visa and MasterCard

This paragraph delves into the business models of Visa and MasterCard, highlighting their roles as payment processors. The companies are categorized as part of the financial sector, technology sector due to their focus on trust, security, and efficient money transfer, and consumer discretionary due to their reliance on consumer spending and travel. The script emphasizes their revenue model, which is based on charging merchants a fee for transactions, and discusses the growth vectors for these companies, including the global shift from cash to electronic payments and the additional fees from currency conversion during travel.

10:04

📈 Growth Vectors and Risks for Visa and MasterCard

The script outlines the growth vectors for Visa and MasterCard, including the global trend of reduced cash usage and increased electronic transactions, especially during travel. It also discusses the potential risks, such as the antitrust investigations and merchant dissatisfaction with the high fees charged by these companies. The script mentions Amazon's attempt to ban Visa transactions in the UK as an example of merchant pushback. Additionally, it touches on the reliance of these companies on a healthy economy for growth, as economic downturns can lead to reduced consumer spending and transaction volumes.

15:05

📊 Comparing Visa and MasterCard Using DSR Stock Comparison Tool

The script introduces the DSR stock comparison tool, which will be used to compare Visa, MasterCard, American Express, and Discovery. It provides an overview of the financial metrics for Visa and MasterCard, including revenue growth, earnings growth, and dividend growth over the past five years. The tool reveals that both companies have strong beta scores, indicating stability, and high dividend safety scores. The paragraph also discusses the slight differences in revenue and earnings growth rates between Visa and MasterCard, with MasterCard showing a modest advantage.

20:07

🤔 Evaluating the Market Position and Financial Performance

This paragraph discusses the market position of Visa and MasterCard, with Visa being the leader in payment transactions and MasterCard having a slightly higher PE ratio, indicating a steeper price for investors. The script also compares the dividend growth rates and valuation metrics, suggesting that Visa might be a slightly better deal in terms of valuation. It also touches on the debt structure of these companies, noting that they do not carry consumer debt, which is a positive factor during economic recessions.

🏆 The Final Verdict on Visa vs. MasterCard

The script concludes by weighing the financial performance metrics and valuation of Visa and MasterCard. While MasterCard shows slightly better financial performance, Visa is considered a better value and market leader. The script suggests that both companies could be part of an investor's portfolio, but if choosing one, an investor might consider current performance metrics or valuation. It also mentions the historical performance of both companies, noting that MasterCard has had slightly better returns over the past five and ten years. The script invites viewers to share their preferences in the comments and encourages continued investment.

Keywords

💡Visa

Visa is a global payment technology company that facilitates electronic funds transfers. In the context of the video, Visa is discussed as a company with a robust business model, primarily due to its role as a payment processor. The script mentions Visa's disappointing earnings report, where revenue was up 10% and adjusted earnings were up 12%, yet the stock price dropped, indicating market dissatisfaction. Visa's business model is highlighted as one that benefits from consumer spending and travel, charging fees to merchants for transactions.

💡MasterCard

MasterCard, similar to Visa, is a global payment solutions company that operates as a payment processor. The video script compares MasterCard with Visa, discussing their similar business models and growth vectors. The analysis in the script suggests that MasterCard might be a better investment in terms of certain financial metrics, such as revenue growth and dividend growth, although both companies are considered strong contenders in the credit card industry.

💡Business Model

The business model in the video refers to the way a company creates, delivers, and captures value. For Visa and MasterCard, their business model is described as payment processors, charging fees to merchants for transactions. This model is considered attractive because it generates recurring revenue and is not burdened by consumer debt, as the banks handle that aspect. The script emphasizes the importance of understanding a company's business model for successful investing.

💡Revenue Growth

Revenue growth is a key financial metric that measures the increase in a company's revenue over time. In the video, revenue growth is used to compare the performance of Visa and MasterCard. The script notes that MasterCard has a slight advantage in terms of revenue growth over the past five years, which is an important factor in evaluating a company's financial health and potential for future earnings.

💡Earnings

Earnings in the context of the video refer to a company's profits, which are critical for assessing its financial performance. The script discusses the earnings growth of Visa and MasterCard, indicating that both companies have seen double-digit growth in their earnings. This growth is a positive sign for investors as it suggests the companies are effectively managing their operations and increasing profitability.

💡Dividend Growth

Dividend growth is the increase in the dividends paid out by a company over time. The video script highlights the dividend growth rates of Visa and MasterCard, with MasterCard showing a slightly higher rate. This is significant for investors seeking income from their investments, as a higher dividend growth rate can indicate a company's commitment to returning value to shareholders.

💡Merchant Fees

Merchant fees are the charges that payment processors like Visa and MasterCard levy on merchants for processing transactions. The script discusses the potential downside of these fees, as merchants may be unhappy with the costs and could face legal challenges due to antitrust laws. The fees are a significant source of revenue for these companies but also present a risk if merchants push back.

💡Consumer Discretionary

Consumer discretionary refers to goods and services that consumers can choose to spend on, as opposed to necessities. In the video, Visa and MasterCard are partly categorized under this sector because their revenue is influenced by consumer spending habits. The script suggests that as the economy grows and consumers spend more, the use of credit cards increases, benefiting these payment processors.

💡Duopoly

A duopoly refers to a market structure where two companies dominate the industry. The video script describes Visa and MasterCard as operating in a duopoly in the credit card payment processing market. This dominance can be advantageous as it provides them with significant market power and control over pricing, such as the merchant fees they charge.

💡Dividend Stocks Rock

Dividend Stocks Rock is mentioned in the script as a membership website where investors can access tools and resources for stock analysis, including the DSR stock comparison tool. The script uses this platform to compare Visa and MasterCard, demonstrating its utility for investors interested in dividend growth and financial metrics.

💡Debt

In the context of the video, debt refers to the financial obligation that consumers have when they use credit cards. The script clarifies that Visa and MasterCard do not carry consumer debt on their balance sheets; instead, they partner with banks that handle the debt. This is a key advantage for these companies as it reduces their financial risk.

Highlights

Visa reported disappointing earnings with a 10% revenue increase and 12% adjusted earnings increase, leading to a nearly 4% stock price drop.

MasterCard's earnings are upcoming, raising the question of whether to invest in Visa, MasterCard, or another company.

Visa and MasterCard have identical business models as payment processors, straddling the financial, technology, and consumer discretionary sectors.

They make money by charging merchants fees for transactions, not by carrying consumer debt.

The growth of Visa and MasterCard is driven by the shift from cash to electronic payments, increased consumer spending, and travel.

Merchants are often forced to accept Visa and MasterCard due to their widespread use and recognition.

Visa and MasterCard's business model is considered excellent due to its predictability and recurring revenue from transaction fees.

The potential downside for these companies includes regulatory risks from antitrust laws and merchant dissatisfaction with fees.

Economic downturns can affect consumer spending, leading to fewer transactions and lower revenue for Visa and MasterCard.

MasterCard has shown slightly better revenue and earnings growth over the past five years compared to Visa.

Visa and MasterCard both have high Dividend Safety Scores and strong dividend growth, with MasterCard having a slight edge.

The dividend growth rate for MasterCard is nearly 18% over the past five years, while Visa's is about 17.7%.

MasterCard's stock has shown a nearly perfect dividend triangle over the past ten years, indicating stability and growth.

Visa is the market leader in payment transactions, processing more transactions than MasterCard.

MasterCard has a higher PE ratio and forward PE ratio, indicating a steeper price to pay for its shares compared to Visa.

Both Visa and MasterCard have high market caps, reflecting their significant positions in the payment processing industry.

American Express and Discovery Financial have different business models, carrying consumer debt and showing less stability in their dividend growth.

The presenter suggests that both Visa and MasterCard could be part of an investor's portfolio, but not as a single position.

MasterCard has historically outperformed Visa in terms of financial metrics and dividend growth, making it a compelling choice.

Transcripts

So Yesterday Visa reported disappointing

numbers actually so disappointing that

Revenue were up 10% adjusted earnings

was up 12% and all the key drivers were

either up I single digit to double digit

that is quite disappointing right and

then you're going to say about Mike that

doesn't make any sense you just told me

that it was disappointing well stock

price dropped by almost 4% on earnings

day and next week we're going to have

MasterCard reporting their earnings and

then the big question is should you buy

Visa should you buy Mastercard or is

there any difference between both so

today we're going to take a look at

their business model their growth

vectors their downside potential and

after that we are going to go into DSR

to use the stock comparison tool and see

which of those two companies or maybe

another one like American Express or

Discovery should be a better buy in the

credit card universe so when analyze a

stock I like to start by understanding

their business model and if you're not

able to explain the business model to a

12-year-old well then you have a pretty

solid sign that you are missing

something and you may make a big mistake

investing in this company so for visa

and MasterCard they have exactly the

same business model they are payment

processors so some people will say oh

they're in the financial sector because

they're endling money but we could also

argue that they are in the technology

sector because it's all about trust

security and transferring money

efficiently processing millions of

transaction all the time on one place to

another so they are also a technology

company and finally they could also be

categorized as a consumer discretionary

company because if the economy goes up

consumers spend money and if they spend

money they travel of course they're

going to use their credit card C and

this is how they make money they make

money on the fee they charge to the

merchant which is amazing business so a

lot of people think oh visa and

MasterCard has a big risk because they

carry on Consumer Debt well they don't

they partner up with banks and the banks

will have the debt on their balance

sheet while visa and MasterCard they're

simply like a toll road they're charging

whenever there's a transaction but they

are not responsible on the debt so if

the consumer is not paying at the end of

the month they don't care they made

their money by charging the merchant

that's it that's all so recurring money

it benefit from a huge mode because

everybody wants to use their credit card

to use their points now and then

Merchant has pretty much no other

choices but to offer both I remember

when I was young it was kind of

complicated to sometimes have a a

merchant that will accept Visa

Mastercard and American Express today

they're all pretty much forced to accept

all of those and it's relatively easy

especially for visa and for MasterCard

to get approved by Merchant because they

are known worldwide they are being used

everywhere and I just came back from a

trip in Iceland and at no time I needed

cash I only use my credit card which is

probably one of the most important

growth vectors for both companies once

again because they have like the same

business model they will grow because

people use less and less cash and they

want to transfer money electronically

with their card with their phone when

you're paying with your phone you're

actually paying with the credit card

that you have included in your phone so

it's always about the same system where

the charging fees and it's super easy to

predict that cash flow coming forward so

while the market was quite disappointed

by double digit growth we can see that

consumers are spending more they're

traveling more and when they're

traveling it's also generating even more

money from visa and MasterCard why

because then they change for currency

conversion so their most growth their

biggest growth vectors are people going

from cash to electronic or plastic

payment the fact that we consume more we

travel more and also that there are

those fees being charged on every single

transaction speaking of fees while this

makes them like one of the perfect

business model as they work in a duopoly

because all the other credit cards will

carry on to death for their customers

but we're going to talk about that later

on today um what is what is maybe the

biggest risk is also all the fees they

charge to Merchant um recently they were

almost about to close an Intrust uh

investigation while they were offering

some like to lower the fees and so on

but the doj's were just like yeah no

that's going to cut it so we're going to

keep on investigating and we're going to

stick working on that so Merchants are

tired for the fees there are antitrust

laws that are going after also the fact

that they are duopoly and all Merchant

are pretty much stuck with them even

Amazon tried a few years ago to ban Visa

transaction in the UK that kind of last

like maybe like a week or 10 days and

then they went back on the negotiation

table so we can see that there is a

Feeling of merchant being upset about

those fees but it is very hard to get

outside of that so that would be a

Slowdown on their growth going forward

um of course they are depending on the

economy so whenever the consumer sees

their budget tightening they will travel

less they will buy stuff they will be

buy less stuff and therefore less volume

less transaction and that will lead to

lower Vol lower revenue and lower

earnings but in the end those are like

pretty small downsides so when I look at

both visa and MasterCard they show an

amazing business model well protected by

the duopoly by the network effect and

the fact that it is a scaling business

so they benefit from the economy's scale

and tomorrow morning if I try to start a

transactional business well it will be

very hard for me to benefit from the

recognition of the brand so Merchant

will not likely want to approve my

credit card so imagine like the DSR

credit card that would be cool right but

probably not going to happen I don't

have the mean I don't have the

technology and I don't have the brand

recognition so solid moti business so is

there a difference between visa and

MasterCard well to answer that question

from the qualitative analysis that I

just made there's not much different so

now we're going to look into the numbers

to see if we can pick up a clear winner

and to do that we're going to use DS R

stock comparison tool so here we are on

my membership website dividend stocks

rock where all DSR Pro members have

access to one of the most powerful tool

to compare more than one stock together

it is the stock Unison tool right here

so the stock on Prison tool is quite

easy to use you can load a pre-selection

but today we're going to go directly to

look at

MasterCard and we're also going to add

visa to demand next to see if we can

find a business that has better numbers

um so for the overview while both are in

the financial sector both are in the

credit services as I told you before I

would qualif qu classify both companies

as oneir Financial onethird technology

and onethird uh consumer discretionary

because it really depends on how much

consumers want to spend with their card

um the beta is pretty similar so this

one is slightly more volatile than visa

for MasterCard but not more not not

enough to make a difference in terms of

pro rating and dividend safety score

they have the maximum at DSR both of

them are amazing and we're going to see

why when you look at the dividend

triangle right here we have Revenue

growth over the past five years so this

is a annualized growth rate of almost

11% for MasterCard almost 10% for Visa

so slight Advantage for MasterCard here

for the earnings we have a

similar uh Advantage again so 16% for

Master Card over the past 5 years

13.38 for Visa so again pretty solid

business growing double digit their

revenue and also double digit their

earnings and the fact that earnings are

growing a little bit faster than Revenue

tells us that there are there is room

for margin expansion which is kind of

great because this is what we like as an

investor we want a business that is able

to grow their sales grow their profit

but also show that they are endson on

their margin and this will obviously

reflect to the third metric of the

dividend triangle so the dividend growth

almost 18% over the past 5 years for

MasterCard and almost 177% for Visa so

at this point I would say both

businesses have a almost copy based

business model so same risk same growth

vectors the numbers of the dividend

triangle is slightly better for

MasterCard so if I stop my analysis

right now I would be tempted to put my

$2 on MasterCard but let's dig further

to see if there's any other points of

comparison that could be interesting uh

one thing that I really like to do is to

look at the overall trend because it's

one thing to have the numbers but it's

even better if you can look at the trend

that will tell you a little bit more

about what's going on so we're going to

take a quick look at their stock cards

right away so now we are on MasterCard

what I want to see here is how the

dividend triangle is moving so as you

can see here we have Revenue that are

quite stable and we see that there's a

bit of a Down of course during the

pandemic that is also followed by the

same down the same slowdown for the

earnings again due to the same event but

that didn't impact their dividend growth

rate at all so overall uh we are looking

here at a nearly perfect dividend

triangle over the past not 5 years but

rather 10 years which is quite

impressive so let's take a look at Visa

just to see if there is a difference

between MasterCard and Visa at this

point so going back again for the

dividend triangle we have the same dip

in 20 2020 to 2021 for the revenue and

the earnings but for the rest of it

again we do have a pretty straight line

um a little bit shaky you're here for

the earnings back in 2017 20 uh 2016

maybe it would be worth it to go back in

time to look at what happened but over

the past five years it's pretty shooting

towards the right direction for both

businesses so going back to the stock

comparison so we're done with the

overview we're done with the dividend

triangle and we have a slight winner so

far for MasterCard um in terms of

dividend metrics uh the Yi is pretty

similar slightly advantage on Visa but

again it's not necessarily moving the

needle in my opinion same thing for the

payout ratio so we have a cash payout

ratio of 20% for MasterCard 22 for visa

and then we have 21 for the cash payout

ratio and then 20 for Visa so again

pretty much head-to-head in terms of

metrics we can see also the dividend

growth rate uh over the past one three

and five years similar so we see that

over the past 3 years it's a little bit

better for Visa but for the past 5 years

it's better for MasterCard so again very

hard to find a winner here for the

Childer score which is the uh dividend

grow rate for the past five years plus

the dividend yield we are also having a

better performance for MasterCard again

18.5 versus

17.7 so pretty close but just a little

bit for MasterCard once again and full

disclaimer it's kind of funny to do this

comparison chart because I hold shares

of visa and I do not hold shares of

MasterCard so maybe I should start

thinking about making the change right

well one last step before we go to the

conclusion before we take a look at

American Express and Discovery just to

end up this video on a nice note uh I

just wanted to look at the valuation

metrics so valuation metrics in terms of

market cap we do have a winner here

where Visa is the leader in terms of

market capitalization but it also uh has

more Merchant process more transaction

so they are the leader in payment

transaction and Visa is the second one

in place uh not a bad position as you

can see it shows better metrics maybe

that explains why it's able to grow a

little bit faster so being the

Challenger sometimes will push the

business to be a little bit more

Innovative while Visa can just come

laidback and uh just keep that edge over

time and in terms of payout R in terms

of PE ratio what we have here well as

MasterCard as outperformed visa for the

dividend triangle it also reflects that

you have to pay a steeper price so the

PE Ratio is higher the forward p ratio

is higher and when you compare it to the

average of the past five years um we do

see that everything is a little bit

higher for MasterCard so in terms of

evaluation I would say that probably

that Visa is slightly a better deal than

MasterCard um so on the metric side we

do have a better financial performance

on V for MasterCard on the valuation

slightly better performance for Visa but

overall there's not a huge deal here

both companies trade at a high p ratio

but compared to their average they're

still offering some an interesting entry

point at this point where on average

over the past 5 years the market was

willing to pay almost 42 times the

earnings right now paying 30 five times

with a p forward p ratio under 30 and

same story here where the average at 36

the current p ratio is at 33 and the

forward per ratio is at around 25 so

once again the market is being a little

bit less right now for the earnings than

it was in the past so now moving on to

the debt structure well of course as I

told you before both companies do not

carry the consumer's debt on their

balance sheet so it's not a a risk and

it's a pretty good thing because when we

have a recession they will not have to

deal with collection with their

customers in terms of debt to equity

ratio we see that MasterCard has more

debt and Equity than Visa but it's more

about how they structured the business

it's not necessarily a bad thing it's

just to understand that MasterCard is

using a little bit more debt than using

shares to finance their activities while

it's the opposite for Visa um in terms

of the current PE ratio the credit score

were slightly better on Visa side so

once again we have like slight Advantage

but so far it's really really hard to

create a winner in the side of a winner

so before I get to that winner because I

do have one in mind I'm just want to go

back here and look at the financial

metrics especially the dividend triangle

by looking at American

Express so you can see that we have a

lot of companies right here so we're

going to add American Express and we're

going to add discovery which is really

important for those two they do have the

debt on their balance sheet so it is a

little bit uh it's it's another risk

factor that visa and MasterCard doesn't

have to deal with where American Express

and discover Financial will have to Care

on the debt so so far they have not been

affected as you can see for the dividend

triangle we do have pretty solid numbers

so Revenue growth at 8% earnings per

share at seven the dividend 10 to 12% %

so that is pretty good numbers but

they're not as good as MasterCard and

visa and when we look at their stock

cards and this is where I'm willing to

discard both of them if I have to make a

choice it is going a lot like you can

see that the earnings and the revenue

got affected a lot more during the

pandemic and that also created a pause

in their dividend growth policy if we

look at Discovery we are going to have a

similar result actually even worse right

now we see that earnings are going down

it's the only company where the earnings

are going down while the other three are

keeps on rocking the boat and again they

have to pause their dividend growth

policy during the covid and it's normal

because they are subject to any

recession they will be affected by those

for for those Reasons I'm ready to take

those one out and just focus on Visa and

MasterCard if you wi this far this video

and you are interesting in interested in

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MasterCard that has a low yield but a

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thank me later so overall to end up this

epic battle between an amazing company

and an amazing company I would say that

there are a few things that you can

decide to pick one or the other and I

would like end it up saying both of them

could be in your portfolio but do not I

would count them as only one position so

if you would like to have a 4% position

in a company like this I would go 2%

MasterCard to Visa but if you really

want to have only one stock in your

portfolio you can use the following

criteria to make your decision so if you

want to pick the one that is performing

the best best right now in terms of

financial metrics and looking at the

dividend triangle MasterCard is a clear

winner so slightly better for Revenue

growth slightly better for earnings and

slightly better for dividend while if

you're better everywhere this is called

performance on the other side Visa

trades at a cheaper value and is the

leader in the market personally I prefer

to buy leaders uh but it's just to give

me a nishal sense of conviction and

confidence in the business

again both companies looks great I'm

super happy with my chose with Visa but

MasterCard could have been a pretty

solid performer in my portfolio as well

and if I look at the past five and 10

years well the choice would have been

better off with Master cards I have to

tell you past historical returns both

are crazy but MasterCard still a little

bit ahead of the other two so that

concludes my epic battle I'm happy with

Visa but you could be happy with

MasterCard and if you if you want to

have both well just split your position

in two and then it's a done deal let me

know in the comment which one you have

and ironically I use MasterCard as a

credit card but I do not use at Visa I

just keep it in my portfolio so let me

know which is your favorite credit card

company and we're going to continue this

discussion in the comments below all

right guys take good care don't forget

to like the channel subscribe and we're

going to talk again next Thursday until

then don't forget to stay invested