Mastercard (NYSE:MA – Get Free Report) and Better Home & Finance (NASDAQ:BETR – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
Profitability
This table compares Mastercard and Better Home & Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mastercard | 46.34% | 239.99% | 30.88% |
| Better Home & Finance | -94.52% | -409.62% | -9.94% |
Institutional and Insider Ownership
97.3% of Mastercard shares are owned by institutional investors. Comparatively, 20.9% of Better Home & Finance shares are owned by institutional investors. 0.1% of Mastercard shares are owned by company insiders. Comparatively, 27.7% of Better Home & Finance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Analyst Ratings
This is a breakdown of current ratings and price targets for Mastercard and Better Home & Finance, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mastercard | 1 | 1 | 24 | 5 | 3.06 |
| Better Home & Finance | 1 | 2 | 5 | 0 | 2.50 |
Mastercard presently has a consensus price target of $661.93, suggesting a potential upside of 16.32%. Better Home & Finance has a consensus price target of $28.17, suggesting a potential upside of 105.15%. Given Better Home & Finance’s higher possible upside, analysts clearly believe Better Home & Finance is more favorable than Mastercard.
Earnings & Valuation
This table compares Mastercard and Better Home & Finance”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mastercard | $32.79 billion | 15.20 | $14.97 billion | $18.18 | 31.30 |
| Better Home & Finance | $164.87 million | 1.57 | -$165.87 million | ($11.02) | -1.25 |
Mastercard has higher revenue and earnings than Better Home & Finance. Better Home & Finance is trading at a lower price-to-earnings ratio than Mastercard, indicating that it is currently the more affordable of the two stocks.
Summary
Mastercard beats Better Home & Finance on 12 of the 15 factors compared between the two stocks.
About Mastercard
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions. It also provides solutions that enable businesses or governments to make payments to businesses, including Virtual Card Number, which is generated dynamically from a physical card and leverages the credit limit of the funding account; a platform to optimize supplier payment enablement campaigns for financial institutions; and treasury intelligence platform that offers corporations with recommendations to enhance working capital performance and accelerate spend on cards. In addition, the company offers Mastercard Send, which partners with digital messaging and payment platforms to enable consumers to send money directly within applications to other consumers; and Mastercard Cross-Border Services enables a range of payment flows through a distribution network with a single point of access to send and receive money globally through various channels, including bank accounts, mobile wallets, cards, and cash payouts. Further, it provides cyber and intelligence solutions; insights and analytics, consulting, marketing, loyalty, processing, and payment gateway solutions for e-commerce merchants; and open banking and digital identity services. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus name. Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York.
About Better Home & Finance
Better Home & Finance Holding Co. engages in the provision of comprehensive homeownership services. It offers mortgage loans, real estate agent services, and title and homeowner’s insurance services. The company was founded in 2014 and is headquartered in New York, NY.
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