- Mastercard has outperformed Visa over the past decade, with a stock price growth of 608%, compared to Visa's 443%.
- Both companies' stocks are in a consolidation phase since 2021, indicating potential significant price movements. Mastercard is closer to reaching a new record high.
In the realm of financial services, one can easily recognize the two international giants, Visa Inc V and Mastercard Inc MA. These companies dominate the market and are highly recognized for facilitating payments through credit, debit, and prepaid cards.
Though their functions may seem identical, there are significant distinctions between them. Their offerings, market presence, and stock performance all vary widely.
As the most influential payment networks worldwide, Visa and Mastercard continue to set the bar for financial dominance.
Visa and Mastercard might not directly issue credit cards, but they serve as a crucial part of the financial world. With their infrastructure, they make bank-to-merchant transactions seamless and secure.
Our analysis of the market performance of both companies reveals intriguing disparities. Mastercard's stock price stands at an impressive $400 per share, a significant contrast to Visa's comparatively lower price tag of $230 as of May 2023.
Over the past decade, Mastercard's stock price has skyrocketed by an impressive 608%, surpassing even the admirable 443% growth of its competitor, Visa.
Looking at the past five years, Mastercard's growth rate of 115% outshines Visa's respectable 82%. Clearly, Mastercard has demonstrated its prowess in the market and continued its upward trajectory.
Currently, Visa and Mastercard's stocks are in a consolidation phase, with Mastercard starting in April 2021 and Visa following in July 2021.
Consolidation periods are usually followed by substantial price movements once a breakout occurs, making this a crucial period for investors to take notice.
Visa and Mastercard are in line for new record highs if they continue to rise. Visa must climb 9.08% to surpass its all-time high of $252, while Mastercard requires a 5.22% increase to exceed its record high of $400, so Mastercard may win the breakout race.
Investors are eagerly anticipating the outcome as the two payment giants forge ahead.
Stock investing is heavily influenced by the volume of shares traded, which reveals valuable information on a stock's liquidity and market interest.
In this regard, Visa has an edge over Mastercard, as it boasts an average volume of 6.45 million shares, surpassing Mastercard's 2.64 million by more than double.
This contrast may be due to Mastercard's higher stock price, deterring some investors.
Though there are some minor differences in their respective benefits, market performance, and trading volume, Visa and Mastercard have both proven themselves to be highly durable and prosperous over time.
With the process of consolidation now drawing to a close, there is ample reason to anticipate fascinating new developments for both of these stocks.
After the closing bell on Friday, May 12, Visa stock closed at $231.88, trading up by 0.16%. MasterCard stock closed at $381.92, trading down by 0.38%.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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