Visa vs. Mastercard: A Fool’s Errand?

So, Visa and Mastercard, eh? The twin titans of plastic. Everyone’s chasing them, thinking they’ll magically become richer just by owning the companies that facilitate other people’s spending. It’s like thinking you’ll get buff just by owning a gym membership. Honestly, the whole thing smells faintly of tulip mania, doesn’t it? But, hey, I’ve seen worse. I once invested in a company that sold self-stirring soup. Don’t ask.

Visa (V 3.00%) just reported a 15% revenue bump in the first quarter of 2026. Decent. A respectable showing. Like a mildly enthusiastic tap dancer. And their earnings per share? Up 17%. Okay, fine. They’re not exactly losing money.

But hold on to your hats, folks, because Mastercard (MA 1.00%) decided to one-up them. A whopping 18% revenue increase in Q4 2025! And earnings soared 24%! They’re practically doing backflips! It’s enough to make a sensible investor reach for the antacids. Or, you know, a short position.

So, which one will make you richer? That’s the question, isn’t it? Let me tell you a secret: neither. Not really. Because here’s the thing: everyone’s already priced in all the good news. It’s like showing up to a magic show after the magician’s already revealed all his tricks. You’re paying for the illusion of wealth, not the wealth itself.

Two Remarkably Similar Companies

Both Visa and Mastercard, let’s be honest, are magnificent moats. Powerful network effects, everyone using their cards, merchants accepting them… it’s a beautiful, self-perpetuating cycle. They’re basically printing money… which, ironically, they facilitate for everyone else. It’s a bit like being a tollbooth operator on the highway to prosperity. You get a cut of everyone else’s journey, but you’re not actually going anywhere yourself.

Now, Mastercard, being the slightly smaller operation, has a theoretical growth advantage. If they can somehow claw their way to Visa’s market share… and that’s a big “if”… they could see their revenue and earnings expand at a faster clip. It’s like a slightly smaller, slightly faster snail. Still a snail, mind you. And snails aren’t known for their breathtaking speed.

The Sensible (and Slightly Cynical) Approach

Let’s talk value. Or, rather, the distinct lack thereof. Visa and Mastercard are trading at price-to-earnings ratios of 32.8 and 34.8, respectively. Those multiples have come down a bit lately, but they still leave a sensible investor feeling… exposed. It’s like buying a slightly used parachute. Sure, it’s cheaper, but you’re still relying on a piece of fabric to save your life.

Mastercard might have a little more growth potential, but it’s also the more expensive of the two. So, here’s my radical idea: buy both! Yes, you heard me. Diversification! It’s the financial equivalent of wearing two pairs of socks. It doesn’t guarantee success, but it does reduce the risk of blisters. And who doesn’t like that? Just don’t expect to get rich quick. This isn’t a lottery ticket, folks. It’s a slow, steady… well, it’s a ride. A ride on the plastic highway. Buckle up, and try not to spend too much.

2026-02-02 14:53

Two Remarkably Similar Companies

The Sensible (and Slightly Cynical) Approach

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