Broadridge Financial Solutions, (BR) vs Mastercard Incorporated (MA): Which Is the Better Buy in 2026?
As of 2026-08-03, BR is undervalued at $154, with a DCF intrinsic value of $21337101183 and a margin of safety of 100%. MA is fairly valued at $573, with an intrinsic value of $558 and a margin of safety of -3%. Of the two, BR has the wider margin of safety.
Rewards
- ★Broadridge Financial Solutions, has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
- ★Broadridge Financial Solutions, scores 91/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
- ★Free cash flow has grown at a 41.8% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Mastercard Incorporated has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 100.0% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Mastercard Incorporated scores 99/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
Risks
- ⚠High leverage (2.33x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
- ⚠5 insider sales totaling $22.1M with no purchases in the past 3 months — insiders are reducing their exposure.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $154?
The market implies -21.0% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding -23.3%, reflecting heavy growth investment expected to generate future returns.
What growth rate is the market pricing in at $573?
The market implies +15.1% Owner Earnings growth, roughly in line with history — reasonably priced.
Standard FCF implies +13.4%, reflecting ongoing growth investment.
Economic Moat Score
Learn more →Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.
Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
Forensic Accounting
Learn more →M-Score Trend
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pessimistic — investigate whether fears are temporary or structural"
"Market is optimistic — be cautious and ensure you have a margin of safety"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: BR vs MA
Is Broadridge Financial Solutions, or Mastercard Incorporated more undervalued in 2026?▼
Based on our discounted cash flow model, BR trades at a 100.0% margin of safety (intrinsic value $21337101183 vs. price $154), compared to MA's -2.7% margin of safety (intrinsic $558 vs. $573).
Which stock has a wider economic moat, Broadridge Financial Solutions, or Mastercard Incorporated?▼
MA scores 99/100 (Wide moat), while BR scores 91/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Broadridge Financial Solutions, in financial distress?▼
BR's Altman Z-Score of 1.9 places it in the Grey zone, signaling elevated bankruptcy risk. MA scores 10.6 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.
Which stock has higher return on invested capital, Broadridge Financial Solutions, or Mastercard Incorporated?▼
MA earns 56.0% ROIC versus BR's 17.1%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.
Which dividend is safer, Broadridge Financial Solutions,'s or Mastercard Incorporated's?▼
MA's dividend earns a safety score of 94/100 (Very Safe), compared to BR's 94/100 (Very Safe). MA has raised its dividend for 3 consecutive years.