Will Visa or Mastercard Have a Better 2023?
Few companies have a more dominant duopoly in their industry than Visa (NYSE: V) and Mastercard (NYSE: MA). Yes, Discover and American Express are popular card issuers in the U.S. But they only issue cards managed by their own bank, as opposed to Visa and Mastercard, which only brand cards and have a payment network. This makes them less risky, as they don't have lending arms to manage.
While their businesses are similar, Visa and Mastercard dominate slightly different niches, even though both cards are widely used. So which stock has the potential for the best 2023?
Looking at their performance in 2022, both companies have done an excellent job in maintaining their value despite a downward trending market, with Visa down 3.7% versus Mastercard's 2.9% loss. It isn't uncommon for these businesses to trade in near-lockstep, as they are similar. However, Mastercard has significantly outperformed Visa over the past five years, even though both have been fantastic investments.
Source Fool.com
