WallStSmart

Capital One Financial Corporation (COF)vsMastercard Inc (MA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Capital One Financial Corporation generates 11% more annual revenue ($36.31B vs $32.79B). MA leads profitability with a 45.7% profit margin vs 8.9%. COF appears more attractively valued with a PEG of 0.21. MA earns a higher WallStSmart Score of 70/100 (B).

COF

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 6.0Value: 5.7Quality: 5.0

MA

Strong Buy

70

out of 100

Grade: B

Growth: 8.0Profit: 10.0Value: 4.3Quality: 6.0
Piotroski: 6/9Altman Z: 4.08

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COF6 strengths · Avg: 9.2/10
PEG RatioValuation
0.2110/10

Growing faster than its price suggests

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
46.3%10/10

Revenue surging 46.3% year-over-year

Market CapQuality
$121.32B9/10

Large-cap with strong market position

Operating MarginProfitability
28.6%8/10

Strong operational efficiency at 28.6%

Free Cash FlowQuality
$6.70B8/10

Generating 6.7B in free cash flow

MA6 strengths · Avg: 9.7/10
Market CapQuality
$444.77B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
209.9%10/10

Every $100 of equity generates 210 in profit

Profit MarginProfitability
45.7%10/10

Keeps 46 of every $100 in revenue as profit

Operating MarginProfitability
57.7%10/10

Strong operational efficiency at 57.7%

Altman Z-ScoreHealth
4.0810/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

Areas to Watch

COF3 concerns · Avg: 2.3/10
Return on EquityProfitability
3.3%3/10

ROE of 3.3% — below average capital efficiency

P/E RatioValuation
59.0x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-4.3%2/10

Earnings declined 4.3%

MA4 concerns · Avg: 2.8/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

P/E RatioValuation
30.4x4/10

Premium valuation, high expectations priced in

Price/BookValuation
57.3x2/10

Trading at 57.3x book value

Debt/EquityHealth
2.451/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : COF

The strongest argument for COF centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 46.3% demonstrates continued momentum. PEG of 0.21 suggests the stock is reasonably priced for its growth.

Bull Case : MA

The strongest argument for MA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 45.7% and operating margin at 57.7%. Revenue growth of 17.6% demonstrates continued momentum.

Bear Case : COF

The primary concerns for COF are Return on Equity, P/E Ratio, EPS Growth. A P/E of 59.0x leaves little room for execution misses.

Bear Case : MA

The primary concerns for MA are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.45 is elevated, increasing financial risk.

Key Dynamics to Monitor

COF profiles as a hypergrowth stock while MA is a growth play — different risk/reward profiles.

COF carries more volatility with a beta of 1.14 — expect wider price swings.

COF is growing revenue faster at 46.3% — sustainability is the question.

COF generates stronger free cash flow (6.7B), providing more financial flexibility.

Bottom Line

MA scores higher overall (70/100 vs 65/100), backed by strong 45.7% margins and 17.6% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Capital One Financial Corporation

FINANCIAL SERVICES · CREDIT SERVICES · USA

Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States.

Mastercard Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Mastercard Incorporated is an American multinational financial services corporation headquartered in the Mastercard International Global Headquarters in Purchase, New York. The Global Operations Headquarters is located in O'Fallon, Missouri, a municipality of St. Charles County, Missouri. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard brand debit, credit and prepaid cards to make purchases. Mastercard Worldwide has been a publicly traded company since 2006.

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