WallStSmart

Encore Capital Group Inc (ECPG)vsMastercard Inc (MA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Mastercard Inc generates 1733% more annual revenue ($33.94B vs $1.85B). MA leads profitability with a 45.9% profit margin vs 16.0%. ECPG appears more attractively valued with a PEG of 0.17. ECPG earns a higher WallStSmart Score of 90/100 (A).

ECPG

Exceptional Buy

90

out of 100

Grade: A

Growth: 8.0Profit: 9.0Value: 8.3Quality: 4.0
Piotroski: 6/9Altman Z: 1.18

MA

Strong Buy

70

out of 100

Grade: B

Growth: 8.0Profit: 10.0Value: 5.0Quality: 5.5
Piotroski: 6/9Altman Z: 4.08

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ECPG6 strengths · Avg: 9.5/10
PEG RatioValuation
0.1710/10

Growing faster than its price suggests

P/E RatioValuation
6.2x10/10

Attractively priced relative to earnings

Operating MarginProfitability
38.7%10/10

Strong operational efficiency at 38.7%

EPS GrowthGrowth
100.0%10/10

Earnings expanding 100.0% YoY

Return on EquityProfitability
28.6%9/10

Every $100 of equity generates 29 in profit

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

MA6 strengths · Avg: 9.7/10
Market CapQuality
$422.07B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
231.6%10/10

Every $100 of equity generates 232 in profit

Profit MarginProfitability
45.9%10/10

Keeps 46 of every $100 in revenue as profit

Operating MarginProfitability
60.8%10/10

Strong operational efficiency at 60.8%

Altman Z-ScoreHealth
4.0810/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
15.8%8/10

15.8% revenue growth

Areas to Watch

ECPG3 concerns · Avg: 2.0/10
Market CapQuality
$1.71B3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
1.182/10

Distress zone — elevated risk

Debt/EquityHealth
3.901/10

Elevated debt levels

MA4 concerns · Avg: 2.8/10
PEG RatioValuation
1.584/10

Expensive relative to growth rate

P/E RatioValuation
27.6x4/10

Moderate valuation

Price/BookValuation
64.8x2/10

Trading at 64.8x book value

Debt/EquityHealth
2.821/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ECPG

The strongest argument for ECPG centers on PEG Ratio, P/E Ratio, Operating Margin. Profitability is solid with margins at 16.0% and operating margin at 38.7%. Revenue growth of 21.0% demonstrates continued momentum.

Bull Case : MA

The strongest argument for MA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 45.9% and operating margin at 60.8%. Revenue growth of 15.8% demonstrates continued momentum.

Bear Case : ECPG

The primary concerns for ECPG are Market Cap, Altman Z-Score, Debt/Equity. Debt-to-equity of 3.90 is elevated, increasing financial risk.

Bear Case : MA

The primary concerns for MA are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.82 is elevated, increasing financial risk.

Key Dynamics to Monitor

ECPG carries more volatility with a beta of 1.33 — expect wider price swings.

ECPG is growing revenue faster at 21.0% — sustainability is the question.

MA generates stronger free cash flow (2.8B), providing more financial flexibility.

Monitor CREDIT SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ECPG scores higher overall (90/100 vs 70/100), backed by strong 16.0% margins and 21.0% revenue growth. Both earn "Exceptional Buy" and "Strong 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.

Encore Capital Group Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Encore Capital Group, Inc., a specialty finance company, offers debt recovery solutions and other related services to consumers in a variety of financial assets worldwide. The company is headquartered in San Diego, California.

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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