Core Insights - Capital One recently reported strong Q2 results, leading to increased investor interest in upcoming quarterly reports from Visa and Mastercard [1][2] Mastercard & Visa's Quarterly Expectations - Mastercard's Q2 sales are expected to rise 15% year-over-year to $7.99 billion, with earnings projected to increase 13% to $4.05 per share [3] - Visa's Q3 sales are anticipated to grow 11% to $9.87 billion, while earnings are expected to spike 18% to $2.86 per share [4] Future Earnings Projections - Mastercard's annual earnings are projected to grow 10% in fiscal 2025 and 16% in FY26 to $18.71 per share [7] - Visa's annual earnings are expected to increase 13% in fiscal 2025 and 12% in FY26 to $12.81 per share [8] Stock Performance & Valuation Comparison - Over the last three years, both Mastercard and Visa stocks have gained over 65%, outperforming the S&P 500 and Zacks Financial Transaction Services Market [9] - Visa stock is currently trading at 31X forward earnings, which is a premium compared to the industry average of 15X, but lower than Mastercard's 35X [11] Investment Outlook - Both Mastercard and Visa are dominant players with strong growth prospects, but Visa has a slight edge in valuation and a consistent record of meeting or exceeding earnings expectations, currently holding a Zacks Rank 2 (Buy) compared to Mastercard's Zacks Rank 3 (Hold) [13]
Mastercard Vs Visa Stock: Which is the Better Investment Ahead of Earnings?