Better Growth Stock: Robinhood vs. Mastercard

Group 1: Company Overview - Robinhood is a brokerage house that pioneered free trading, significantly impacting the discount brokerage industry and forcing competitors to adopt similar practices [3][4] - Mastercard is a payment processing company that benefits from the long-term trend of consumers moving away from cash towards card payments, resulting in over 200% revenue growth in the past decade [5][6] Group 2: Business Growth - Robinhood has experienced impressive growth, with revenue increasing over 150% in the past three years since its IPO in mid-2021, although this growth is from a small base [4] - Mastercard's business model is somewhat insulated from economic downturns, as it primarily acts as a toll taker for transactions, relying on the continued consumer spending [6] Group 3: Valuation and Investment Considerations - The key differentiating factor between Robinhood and Mastercard is valuation, with Robinhood being a younger company with significant growth potential but having seen its stock rise over 1,000% in the past three years [7] - While both companies have compelling growth stories, Mastercard is viewed as a more reliable investment option due to its established business model and lower valuation [8]