"At this point, while we continue to like both companies, we favor Visa over MasterCard given that the recent price-to-earnings multiple differential has widened to a level where MA's premium to Visa is above the historical mean," Sakhrani added.
Sakhrani's price target for Visa is $256, implying 28% upside over Tuesday's close. Visa's shares were up nearly 2% in afternoon trading, t $203.10.
The following chart shows the performance of MasterCard and Visa this year, against the performance of i the S&P 500 ^GSPC.
data by YCharts
-- Written by Philip van Doorn in Jupiter, Fla.
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