COIN Holdings, Inc. (COIN)vs Mastercard Incorporated (MA)

Quick verdict

COIN Holdings, Inc. (COIN) and Mastercard Incorporated (MA) appeal to different investors. On our six-factor framework, COIN scores 4 and MA scores 2. COIN looks cheaper on the multiples that matter, while COIN grows faster and COIN earns higher returns on capital. Overall, COIN edges this comparison, but the right pick depends on whether you prioritise value, growth, income or balance-sheet safety.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

COIN Holdings, Inc. operates in Credit Services (Financial Services), while Mastercard Incorporated sits in Credit Services (Financial Services). Because both compete in the same sector, this is a direct head-to-head and the financial differences below are especially meaningful. COIN carries a beta of 0.65 versus 1.89 for MA, meaning MA has historically been the more volatile of the two.

Valuation

On valuation, COIN is the cheaper stock. COIN trades on a forward P/E of 36.74 and EV/EBITDA of 10.32, against 28.34 and 18.62 for MA. Price-to-sales is 15.99 vs 18.02, and free-cash-flow yield is 2.0% vs 0.9%. A higher multiple is only justified if the company can sustain faster growth or wider margins, which is exactly what the next sections test.

Growth profile

COIN is the faster grower. COIN has compounded revenue at 28.3% over three years with EPS growth of 41.6%, while MA has delivered 9.5% revenue and 8.3% EPS growth. Growth like this is the single biggest driver of long-term returns, but it also tends to come with a richer valuation, so it must be weighed against the multiples above.

Profitability and quality

On profitability and quality, COIN is stronger. COIN posts a 33.2% operating margin, 44.1% return on equity and 8.9% return on invested capital. MA posts 14.1%, 43.2% and 9.8% respectively. Return on invested capital above roughly 15% is a hallmark of a durable competitive advantage, so this metric deserves particular attention.

Balance-sheet risk

COIN has the safer balance sheet. COIN carries net-debt/EBITDA of -0.28x with a current ratio of 2.79, versus 3.49x and 1.86 for MA. Lower leverage gives a company more room to invest through a downturn and reduces the risk of dilution or distress.

Price performance and shareholder returns

Over the past year COIN returned 6.3% against 28.9% for MA; on a three-year annualised basis it is 28.4% vs 5.9%. COIN yields 0.0% and MA yields 0.0%. Past performance never guarantees future results, but the multi-year track record shows how the market has rewarded each business so far.

Which stock fits which investor

For value-oriented investors, COIN is the better fit on today's multiples. Growth investors will likely prefer COIN, which is expanding faster. Income investors should lean toward MA for its higher shareholder yield, while investors who prize quality-at-a-reasonable-price will favour COIN for its superior returns on capital. This is a comparison of facts, not a recommendation — your time horizon, risk tolerance and existing holdings should drive the final decision.

• Value: COIN
• Growth: COIN
• Income: MA
• Quality: COIN

Frequently asked questions

Is COIN or MA the better buy right now?

Neither is universally "better." COIN scores 4 and MA scores 2 on our six-factor framework. COIN is cheaper, COIN grows faster, and COIN is higher quality — so the right pick depends on your objective.

Which stock is cheaper, COIN or MA?

COIN is the cheaper stock across forward P/E (36.74 vs 28.34), EV/EBITDA (10.32 vs 18.62) and price-to-sales (15.99 vs 18.02).

Which has grown faster, COIN or MA?

COIN has the stronger growth profile, with three-year revenue CAGR of 28.3% for COIN versus 9.5% for MA.

Which stock pays a bigger dividend?

COIN yields 0.0% and MA yields 0.0%, so MA is the stronger income choice.

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