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The 1 Stock Better Than Visa and MasterCard

By David Hanson and Matt Koppenheffer – Feb 22, 2014 at 8:31AM

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Why I like American Express better than MasterCard and Visa

Given past performance, Visa (V -0.19%) and MasterCard (MA -0.67%) are generally tapped as the best credit card stocks; however, American Express (AXP -0.14%) may have the better business model.

In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson take a look at the three companies and debate the future prospects of the stocks.

David thinks MasterCard and Visa are vulnerable to more industry disruptions than the market is pricing into their stocks today, meanwhile American Express has a loyal following and strong pricing power. While Matt agrees with David to some extent, he doesn't think the price of American Express shares today are worth picking up.

David Hanson owns shares of American Express. Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool recommends American Express, MasterCard, and Visa. The Motley Fool owns shares of MasterCard and Visa. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

American Express Stock Quote
American Express
$153.90 (-0.14%) $0.22
Mastercard Stock Quote
$348.83 (-0.67%) $-2.34
Visa Stock Quote
$208.70 (-0.19%) $0.40

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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