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American Express vs. Mastercard: Which Is the Better Payments Stock to Buy?

Motley Fool - Fri Aug 30, 5:11AM CDT

On the surface, American Express(NYSE: AXP) looks like a very cheap stock, at least relative to major payment network company Mastercard(NYSE: MA). In this video, Fool.com contributors Matt Frankel, CFP®, and Tyler Crowe take a closer look to explain why the valuation gap exists and what investors need to know.

*Stock prices used were the morning prices of Aug. 22, 2024. The video was published on Aug. 24, 2024.

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Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Matt Frankel has positions in American Express. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard and Visa. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy. Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.