MA vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Mastercard Incorporated and Microsoft Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-13.
Mastercard Incorporated · Financial Services
$499.81
+5.0% upside to fair value
Grade B+
High Quality
VS
Microsoft Corporation · Technology
$429.25
-1.3% upside to fair value
Grade B
High Quality
QuantHub Verdict
MA has more upside to fair value
(+5.0%).
MSFT trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MA |
MSFT |
| Current Price |
$499.81 |
$429.25 |
| Fair Value Estimate |
$525.00 |
$423.82 |
| Upside to Fair Value |
+5.0%
|
-1.3%
|
| Market Cap |
$441.6B |
$3,187.4B |
| Forward P/E |
28.6x
|
26.8x
|
| EV / EBITDA |
21.3x
|
17.2x
|
| Price / Sales |
13.0x
|
10.4x
|
| Price / FCF |
24.9x
|
41.2x
|
| Revenue Growth YoY |
+15.8%
|
+16.7%
|
| Gross Margin |
83.0%
|
68.6%
|
| Operating Margin |
59.4%
|
46.7%
|
| Return on Equity |
206.1%
|
33.6%
|
| Dividend Yield |
0.6% |
0% |
| FCF Yield |
4.01%
|
2.43%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Mastercard is one of two global payment network duopolists alongside Visa, with structurally high margins (83% gross, 59% operating, 46% net), powerful network effects, and durable secular tailwinds from the ongoing cash-to-card and card-to-digital migration. Q1 2026 results reported April 30 showed revenue of $8.40 billion (+15.8% YoY) and EPS of $4.35 (+20.8% YoY), driven by continued cross-bor…
Microsoft Corporation is a leading technology company specializing in software infrastructure, cloud computing, and productivity solutions. The company benefits from a high-quality business model characterized by durable competitive moats including strong switching costs and intangible assets such as its brand and cloud infrastructure. Under CEO Satya Nadella's leadership since 2014, Microsoft ha…
Accumulation Zones
| Metric |
MA |
MSFT |
| Zone Low |
$393.75 |
$317.87 |
| Zone High |
$446.25 |
$360.25 |
| In Buy Zone? |
No
|
No
|