Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, credit card giant MasterCard (NYSE: MA ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at MasterCard and see what CAPS investors are saying about the stock right now.
MasterCard facts
| Headquarters (founded) | Purchase, N.Y. (1966) |
| Market Cap | $72.4 billion |
| Industry | Data processing and outsourced services |
| Trailing-12-Month Revenue | $7.5 billion |
| Management | CEO Ajaypal Banga (since 2010) |
| Return on Equity (average, past 3 years) | 40.5% |
| Cash / Debt | $5.0 billion / $0 |
| Dividend Yield | 0.4% |
| Competitors | American Express |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 92% of the 3,452 members who have rated MasterCard believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those bulls, fellow Fool Simon Erickson (TMFInnovator), succinctly summed up the outperform case for our community:
Incredible business that has lots of things to like:
-Their open-loop network carries lower risk and benefits from network effects. This shields MA (and V) from other competitors entering their market.
-Global macro trend moving from cash and checks to electronic payments.
-Operating margins that have steadily improved over the past five years and are now over 50%.
-No long-term debt.
-Excellent management.
-Quadrupled their dividend in the last two years and it is still less than 10% of free-cash-flow.
I've had this company on my radar for a while, but never pulled the trigger. Until now.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, MasterCard may not be your top choice.
After all, many investors are terrified about investing in big financial stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.
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