For the past five years, shares of MasterCard Inc. (MA) and Apple Inc. (AAPL) have been enjoying a similar upward trajectory, though the hipster's performance has about doubled that of the stodgy financial services company. And Apple’s market cap is about nine times that of Mastercard.
MasterCard Stock Chart by YCharts
And if you think the economy is going to continue its slow march upward, then a key way to play that is with a company whose earnings depend on people charging for goods and services and racking up debt. A healthier job market and economy will bring more people to the cash registers waving plastic. Conversely, there's no guarantee that Apple's next, greatest thing will catch on.
MasterCard Stock Chart by YCharts
Both companies’ stocks are bouncing around their 52-week highs. In MasterCard's case, a strong earnings report last week showed the company was ahead of its own expectations.
But fundamentals, confirmed by YCharts Pro, suggest investors may be paying too much for the security and downside protection MasterCard is offering.
Apple has a lower price-to-sales, price-to-earnings and price-to-earnings growth ratio than does MasterCard, not to mention a higher return on equity.
MasterCard Price / Sales Ratio Chart by YCharts
MasterCard PE Ratio Chart by YCharts
MasterCard PEG Ratio Chart by YCharts
YCharts Pro says that MasterCard is 28.7% overvalued while Apple is 16.7% undervalued. Siri should be telling that to people.
Michael McHugh is an editor for the YCharts Pro
Investor Service which includes professional stock charts, stock
ratings, stock screener and portfolio
