Mastercard Outpacing Visa in Growth Despite Similar Multiples

Investor Tanjala Gica, who owns both Visa Inc. (V) and Mastercard Incorporated (MA), believes that MA is a better buy than V right now.

Gica notes that MA has historically outpaced V in top-line growth and continues to show margin expansion, while V's recent growth may be a one-off event.

The two companies currently trade at similar forward P/E multiples, around 28-28.6x, but Gica argues that MA's growth profile justifies a premium valuation if sustained.