Seek Returns logo

MA vs. MSTR: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at MA and MSTR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolMAMSTR
Company NameMastercard IncorporatedStrategy Inc
CountryUnited StatesUnited States
GICS SectorFinancialsInformation Technology
GICS IndustryFinancial ServicesSoftware
Market Capitalization536.27 billion USD97.32 billion USD
ExchangeNYSENasdaqGS
Listing DateMay 25, 2006June 11, 1998
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MA and MSTR by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

MA vs. MSTR: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolMAMSTR
5-Day Price Return1.32%1.97%
13-Week Price Return4.05%-14.08%
26-Week Price Return4.35%7.70%
52-Week Price Return26.53%156.48%
Month-to-Date Return4.72%-14.60%
Year-to-Date Return12.66%18.50%
10-Day Avg. Volume2.36M12.65M
3-Month Avg. Volume2.68M12.60M
3-Month Volatility21.33%53.52%
Beta0.993.93

Profitability

Return on Equity (TTM)

MA

191.02%

Financial Services Industry

Max
40.58%
Q3
20.06%
Median
10.67%
Q1
4.19%
Min
-10.31%

MA’s Return on Equity of 191.02% is exceptionally high, placing it well beyond the typical range for the Financial Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

MSTR

18.10%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

MSTR’s Return on Equity of 18.10% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

MA vs. MSTR: A comparison of their Return on Equity (TTM) against their respective Financial Services and Software industry benchmarks.

Net Profit Margin (TTM)

MA

44.93%

Financial Services Industry

Max
52.86%
Q3
25.58%
Median
12.23%
Q1
6.64%
Min
-9.92%

A Net Profit Margin of 44.93% places MA in the upper quartile for the Financial Services industry, signifying strong profitability and more effective cost management than most of its peers.

MSTR

1,036.61%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

MSTR’s Net Profit Margin of 1,036.61% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

MA vs. MSTR: A comparison of their Net Profit Margin (TTM) against their respective Financial Services and Software industry benchmarks.

Operating Profit Margin (TTM)

MA

55.78%

Financial Services Industry

Max
77.28%
Q3
37.68%
Median
18.17%
Q1
9.27%
Min
-8.19%

An Operating Profit Margin of 55.78% places MA in the upper quartile for the Financial Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

MSTR

1,435.93%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

MSTR’s Operating Profit Margin of 1,435.93% is exceptionally high, placing it well above the typical range for the Software industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

MA vs. MSTR: A comparison of their Operating Profit Margin (TTM) against their respective Financial Services and Software industry benchmarks.

Profitability at a Glance

SymbolMAMSTR
Return on Equity (TTM)191.02%18.10%
Return on Assets (TTM)27.84%13.42%
Net Profit Margin (TTM)44.93%1,036.61%
Operating Profit Margin (TTM)55.78%1,435.93%
Gross Profit Margin (TTM)--70.10%

Financial Strength

Current Ratio (MRQ)

MA

1.16

Financial Services Industry

Max
4.58
Q3
2.59
Median
1.33
Q1
0.69
Min
0.01

For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

MSTR

0.68

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

MSTR’s Current Ratio of 0.68 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

MA vs. MSTR: A comparison of their Current Ratio (MRQ) against their respective Financial Services and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

MA

2.42

Financial Services Industry

Max
4.96
Q3
2.10
Median
0.57
Q1
0.12
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.

MSTR

0.16

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

MSTR’s Debt-to-Equity Ratio of 0.16 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MA vs. MSTR: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Financial Services and Software industry benchmarks.

Interest Coverage Ratio (TTM)

MA

37.93

Financial Services Industry

Max
136.23
Q3
56.08
Median
6.55
Q1
2.01
Min
-33.27

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.

MSTR

-30.23

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

MSTR has a negative Interest Coverage Ratio of -30.23. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

MA vs. MSTR: A comparison of their Interest Coverage Ratio (TTM) against their respective Financial Services and Software industry benchmarks.

Financial Strength at a Glance

SymbolMAMSTR
Current Ratio (MRQ)1.160.68
Quick Ratio (MRQ)1.160.55
Debt-to-Equity Ratio (MRQ)2.420.16
Interest Coverage Ratio (TTM)37.93-30.23

Growth

Revenue Growth

MA vs. MSTR: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

MA vs. MSTR: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

MA

0.49%

Financial Services Industry

Max
8.18%
Q3
3.60%
Median
1.56%
Q1
0.00%
Min
0.00%

MA’s Dividend Yield of 0.49% is consistent with its peers in the Financial Services industry, providing a dividend return that is standard for its sector.

MSTR

0.06%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 0.06%, MSTR offers a more attractive income stream than most of its peers in the Software industry, signaling a strong commitment to shareholder returns.

MA vs. MSTR: A comparison of their Dividend Yield (TTM) against their respective Financial Services and Software industry benchmarks.

Dividend Payout Ratio (TTM)

MA

19.15%

Financial Services Industry

Max
155.56%
Q3
63.71%
Median
18.08%
Q1
0.00%
Min
0.00%

MA’s Dividend Payout Ratio of 19.15% is within the typical range for the Financial Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MSTR

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

MSTR has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

MA vs. MSTR: A comparison of their Dividend Payout Ratio (TTM) against their respective Financial Services and Software industry benchmarks.

Dividend at a Glance

SymbolMAMSTR
Dividend Yield (TTM)0.49%0.06%
Dividend Payout Ratio (TTM)19.15%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

MA

39.22

Financial Services Industry

Max
63.23
Q3
32.10
Median
14.41
Q1
10.81
Min
0.37

A P/E Ratio of 39.22 places MA in the upper quartile for the Financial Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

MSTR

19.82

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

In the lower quartile for the Software industry, MSTR’s P/E Ratio of 19.82 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

MA vs. MSTR: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Financial Services and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

MA

17.62

Financial Services Industry

Max
11.16
Q3
5.45
Median
2.61
Q1
1.25
Min
0.04

The P/S Ratio is often not a primary valuation tool in the Financial Services industry.

MSTR

205.43

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

With a P/S Ratio of 205.43, MSTR trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

MA vs. MSTR: A comparison of their Price-to-Sales Ratio (TTM) against their respective Financial Services and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

MA

64.98

Financial Services Industry

Max
7.09
Q3
3.79
Median
1.46
Q1
0.83
Min
0.04

At 64.98, MA’s P/B Ratio is at an extreme premium to the Financial Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

MSTR

2.25

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

MSTR’s P/B Ratio of 2.25 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

MA vs. MSTR: A comparison of their Price-to-Book Ratio (MRQ) against their respective Financial Services and Software industry benchmarks.

Valuation at a Glance

SymbolMAMSTR
Price-to-Earnings Ratio (TTM)39.2219.82
Price-to-Sales Ratio (TTM)17.62205.43
Price-to-Book Ratio (MRQ)64.982.25
Price-to-Free Cash Flow Ratio (TTM)33.581,619.42