Better Home & Finance (NASDAQ:BETR – Get Free Report) and Mastercard (NYSE:MA – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Volatility & Risk
Better Home & Finance has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, Mastercard has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.
Institutional and Insider Ownership
20.9% of Better Home & Finance shares are owned by institutional investors. Comparatively, 97.3% of Mastercard shares are owned by institutional investors. 27.7% of Better Home & Finance shares are owned by insiders. Comparatively, 0.1% of Mastercard shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Better Home & Finance | $164.87 million | 1.57 | -$165.87 million | ($11.02) | -1.25 |
| Mastercard | $32.79 billion | 15.20 | $14.97 billion | $18.18 | 31.30 |
Mastercard has higher revenue and earnings than Better Home & Finance. Better Home & Finance is trading at a lower price-to-earnings ratio than Mastercard, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Better Home & Finance and Mastercard, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Better Home & Finance | 1 | 2 | 5 | 0 | 2.50 |
| Mastercard | 1 | 1 | 24 | 5 | 3.06 |
Better Home & Finance presently has a consensus price target of $28.17, suggesting a potential upside of 105.15%. Mastercard has a consensus price target of $661.93, suggesting a potential upside of 16.32%. Given Better Home & Finance’s higher probable upside, equities analysts plainly believe Better Home & Finance is more favorable than Mastercard.
Profitability
This table compares Better Home & Finance and Mastercard’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Better Home & Finance | -94.52% | -409.62% | -9.94% |
| Mastercard | 46.34% | 239.99% | 30.88% |
Summary
Mastercard beats Better Home & Finance on 12 of the 15 factors compared between the two stocks.
About Better Home & Finance
Better Home & Finance Holding Co. engages in the provision of comprehensive homeownership services. It offers mortgage loans, real estate agent services, and title and homeowner’s insurance services. The company was founded in 2014 and is headquartered in New York, NY.
About Mastercard
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions. It also provides solutions that enable businesses or governments to make payments to businesses, including Virtual Card Number, which is generated dynamically from a physical card and leverages the credit limit of the funding account; a platform to optimize supplier payment enablement campaigns for financial institutions; and treasury intelligence platform that offers corporations with recommendations to enhance working capital performance and accelerate spend on cards. In addition, the company offers Mastercard Send, which partners with digital messaging and payment platforms to enable consumers to send money directly within applications to other consumers; and Mastercard Cross-Border Services enables a range of payment flows through a distribution network with a single point of access to send and receive money globally through various channels, including bank accounts, mobile wallets, cards, and cash payouts. Further, it provides cyber and intelligence solutions; insights and analytics, consulting, marketing, loyalty, processing, and payment gateway solutions for e-commerce merchants; and open banking and digital identity services. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus name. Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York.
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