Adyen vs Mastercard Which Is Stronger?

Adyen and Mastercard are two prominent players in the financial technology and payment processing industry. Adyen, a Dutch company, has rapidly grown in recent years with its innovative payment solutions for e-commerce businesses. On the other hand, Mastercard, an established global leader in the industry, continues to maintain its strong market position with a wide range of payment services. Both companies offer investors an opportunity to capitalize on the evolving payment landscape, but differences in business models and growth potential may influence investor decisions.

Adyen or Mastercard?

When comparing Adyen and Mastercard, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Adyen and Mastercard.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Adyen has a dividend yield of -%, while Mastercard has a dividend yield of 0.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Adyen reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Mastercard reports a 5-year dividend growth of 17.92% year and a payout ratio of 19.28%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Adyen P/E ratio at 56.14 and Mastercard's P/E ratio at 39.59. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Adyen P/B ratio is 12.97 while Mastercard's P/B ratio is 65.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Adyen has seen a 5-year revenue growth of 0.07%, while Mastercard's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Adyen's ROE at 24.55% and Mastercard's ROE at 169.78%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €1469.40 for Adyen and $522.50 for Mastercard. Over the past year, Adyen's prices ranged from €965.60 to €1591.20, with a yearly change of 64.79%. Mastercard's prices fluctuated between $409.23 and $535.77, with a yearly change of 30.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.