Mastercard vs Banco do Brasil Which Is More Lucrative?

Mastercard and Banco do Brasil are two prominent players in the world of finance, offering a range of services to their customers. Mastercard is a global payment technology company known for its innovative solutions in the field of payment processing, while Banco do Brasil is one of the largest financial institutions in Brazil with a strong presence in the country's banking sector. Both companies have seen growth and success in recent years, attracting investors looking for opportunities in the financial industry.

Mastercard or Banco do Brasil?

When comparing Mastercard and Banco do Brasil, 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 Mastercard and Banco do Brasil.

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. Mastercard has a dividend yield of 0.63%, while Banco do Brasil has a dividend yield of 2.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Mastercard reports a 5-year dividend growth of 17.92% year and a payout ratio of 19.28%. On the other hand, Banco do Brasil reports a 5-year dividend growth of 17.24% year and a payout ratio of 31.00%.

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 Mastercard P/E ratio at 39.09 and Banco do Brasil's P/E ratio at 4.58. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Mastercard P/B ratio is 64.75 while Banco do Brasil's P/B ratio is 0.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Mastercard has seen a 5-year revenue growth of 0.85%, while Banco do Brasil's is -0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mastercard's ROE at 169.78% and Banco do Brasil's ROE at 19.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $518.00 for Mastercard and $4.44 for Banco do Brasil. Over the past year, Mastercard's prices ranged from $397.91 to $534.03, with a yearly change of 34.21%. Banco do Brasil's prices fluctuated between $4.35 and $6.22, with a yearly change of 43.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.