Compare Stocks › EIX vs MA

Edison International (EIX) vs Mastercard Incorporated (MA): Which Is the Better Buy in 2026?

As of 2026-06-19, EIX is undervalued at $72, with a DCF intrinsic value of $132 and a margin of safety of 46%. MA is fairly valued at $490, with an intrinsic value of $571 and a margin of safety of 14%. Of the two, EIX has the wider margin of safety.

EIX

Edison International

$71.89

Mastercard Incorporated

$489.79

Rewards

EIX

★Each dollar of retained earnings has created $11.43 of earning power — management is an exceptional capital allocator.
★Management has timed buybacks well — 3 out of 3 years showed value-accretive repurchases.
★Trailing P/E of 7.8x is 66% below the historical average of 22.9x — potentially undervalued relative to its own history.

★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

EIX

⚠Edison International scores only 27/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
⚠Despite buyback spending, shares outstanding increased in 3 out of 3 years — share issuance is offsetting repurchases.
⚠PEG ratio of 3.40 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.

⚠High leverage (1.60x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
⚠12 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.

Key Valuation Metrics

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EIX

Valuation

$-1.13B

Free Cash Flow

$16.15B

-4.10%

FCF Yield

3.73%

7.81

Trailing P/E

28.31

11.04

Forward P/E

21.50

Quality & Moat

6.92%

ROIC

63.51%

18.86%

ROE

232.08%

58.68%

Gross Margin

100.00%

3.40

PEG Ratio

1.54

Balance Sheet Safety

2.25

Net Debt / Equity

1.60

N/A

Interest Coverage

N/A

4.96

Net Debt / EBITDA

0.50

4.87%

Dividend Yield

0.69%

EIX: 3Ties: 1MA: 8

EIXMA

Historical Fundamentals

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EIX

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

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EIX

$-0.32

created per $1 retained over 3 years

Market Cap Declined

Σ Retained

$3.77B

Δ Market Cap

$-1.22B

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

$5.62

created per $1 retained over 3 years

Exceptional Value Creator

Σ Retained

$31.68B

Δ Market Cap

+$177.96B

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

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EIX

45.7% Margin of Safety

Price is 45.7% below estimated fair value

Current Price: $71.89

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $132.30

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

14.2% Margin of Safety

Price is 14.2% below estimated fair value

Current Price: $489.79

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $571.14

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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EIX

Requires positive FCF to compute implied growth rate.

What growth rate is the market pricing in at $490?

+13.0%

Market-Implied Owner Earnings Growth

Standard FCF implies +12.0%

The market implies +13.0% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies +12.0%, reflecting ongoing growth investment.

Economic Moat Score

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EIX

27/100

No Moat

70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though revenue predictability shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

99/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.

Forensic Accounting

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EIX

-2.70

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

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.

-2.53

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

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EIX

Insiders 0.3%Institutions 94.3%Retail & Other 5.5%

No. of Institutional Holders1,474

High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insiders 0.1%Institutions 91.6%Retail & Other 8.3%

No. of Institutional Holders4,804

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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EIX

Buys (3M)

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

Buys (3M)

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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EIX

Sells (3M)

Sells (12M)

Total value (12M): $1.43M

TAYLOR PETER J

Director

$37,650

@ $75.30 · 2026-04-13

ANDERSON JILL CHARLOTTE

Officer

$514,088

@ $74.67 · 2026-03-02

TAYLOR PETER J

Director

$37,270

@ $74.54 · 2026-03-02

BOWMAN ERICA S

Officer

$94,264

@ $73.87 · 2026-02-23

TAYLOR PETER J

Director

$99,486

@ $55.27 · 2025-10-30

MURPHY J ANDREW

Officer

$647,560

@ $54.42 · 2025-08-04

BELIVEAU-DUNN JEANNE

Director

$178,666

@ $54.34 · 2025-03-06

TAYLOR PETER J

Director

$104,100

@ $83.28 · 2024-11-15

UMANOFF ADAM S

General Counsel

$2.13M

@ $83.05 · 2024-10-31

MURPHY J ANDREW

Officer

$2.04M

@ $85.45 · 2024-08-26

MURPHY J ANDREW

Officer

$115,770

@ $85.00 · 2024-08-23

SCHILLING NATALIE K

Officer

$187,285

@ $80.00 · 2024-07-31

MURPHY J ANDREW

Officer

$2.60M

@ $80.12 · 2024-07-31

MURPHY J ANDREW

Officer

$2.27M

@ $78.43 · 2024-07-26

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Sells (3M)

Sells (12M)

Total value (12M): $39.22M

LING HAI

Officer

$4.48M

@ $499.20 · 2026-02-24

SACHIN J. MEHRA

Chief Financial Officer

$10.20M

@ $591.00 · 2025-09-02

LING HAI

Officer

$2.69M

@ $600.00 · 2025-08-22

SACHIN J. MEHRA

Chief Financial Officer

$10.46M

@ $586.89 · 2025-08-19

SACHIN J. MEHRA

Chief Financial Officer

$3.83M

@ $566.46 · 2025-08-05

GENACHOWSKI JULIUS

Director

$178,049

@ $570.67 · 2025-07-07

KIRKPATRICK LINDA PISTECCHIA

Officer

$536,480

@ $560.00 · 2025-06-30

SESHADRI RAJEEV

Officer

$601,447

@ $546.77 · 2025-06-27

GENACHOWSKI JULIUS

Director

$173,910

@ $561.00 · 2025-06-24

KIRKPATRICK LINDA PISTECCHIA

Officer

$536,480

@ $560.00 · 2025-06-24

SESHADRI RAJEEV

Officer

$508,474

@ $535.80 · 2025-06-20

VOSBURG CRAIG

Officer

$5.02M

@ $532.97 · 2025-06-20

SESHADRI RAJEEV

Officer

$1.76M

@ $561.78 · 2025-06-16

KIRKPATRICK LINDA PISTECCHIA

Officer

$549,373

@ $572.86 · 2025-06-13

VOSBURG CRAIG

Officer

$5.55M

@ $588.18 · 2025-06-12

VOSBURG CRAIG

Officer

$8.22M

@ $585.05 · 2025-06-05

ARKELL SANDRA A

Officer

$218,223

@ $577.31 · 2025-05-15

ARKELL SANDRA A

Officer

$257,535

@ $572.30 · 2025-05-12

MIEBACH MICHAEL

Chief Executive Officer

$8.68M

@ $550.16 · 2025-03-26

MCLAUGHLIN EDWARD GRUNDE

Officer

$3.81M

@ $534.68 · 2025-03-19

MIEBACH MICHAEL

Chief Executive Officer

$9.78M

@ $553.76 · 2025-03-05

VOSBURG CRAIG

Officer

$6.12M

@ $556.14 · 2025-03-05

VOSBURG CRAIG

Officer

$6.19M

@ $562.72 · 2025-02-26

MCLAUGHLIN EDWARD GRUNDE

Officer

$6.18M

@ $564.99 · 2025-02-18

MIEBACH MICHAEL

Chief Executive Officer

$10.17M

@ $564.95 · 2025-02-18

VOSBURG CRAIG

Officer

$7.97M

@ $565.00 · 2025-02-18

SACHIN J. MEHRA

Chief Financial Officer

$2.36M

@ $500.44 · 2024-11-01

MADABHUSHI VENKATA RAJAMANNAR

Officer

$2.30M

@ $491.03 · 2024-09-27

MADABHUSHI VENKATA RAJAMANNAR

Officer

$2.29M

@ $489.86 · 2024-09-20

ARKELL SANDRA A

Officer

$550,000

@ $500.00 · 2024-09-17

MADABHUSHI VENKATA RAJAMANNAR

Officer

$2.31M

@ $493.10 · 2024-09-13

ARKELL SANDRA A

Officer

$528,000

@ $480.00 · 2024-08-29

MASTERCARD FOUNDATION ASSET MANAGEMENT CORPORATION

Beneficial Owner of more than 10% of a Class of Security

$42.19M

@ $468.80 · 2024-08-22

MASTERCARD FOUNDATION ASSET MANAGEMENT CORPORATION

Beneficial Owner of more than 10% of a Class of Security

$42.03M

@ $467.02 · 2024-08-21

LING HAI

Officer

$1.36M

@ $470.00 · 2024-08-16

SACHIN J. MEHRA

Chief Financial Officer

$3.16M

@ $470.00 · 2024-08-16

SACHIN J. MEHRA

Chief Financial Officer

$6.11M

@ $455.00 · 2024-08-05

LING HAI

Officer

$1.35M

@ $465.46 · 2024-08-01

ARKELL SANDRA A

Officer

$512,006

@ $465.46 · 2024-08-01

VOSBURG CRAIG

Officer

$4.07M

@ $451.06 · 2024-06-20

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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EIX

😏Greed(62/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

😐Neutral(47/100)

"Market is pricing this stock without strong emotion in either direction"

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

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EIX

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (62)

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (47)

View EIX Full Analysis View MA Full Analysis

Frequently Asked Questions: EIX vs MA

Is Edison International or Mastercard Incorporated more undervalued in 2026?▼

Based on our discounted cash flow model, EIX trades at a 45.7% margin of safety (intrinsic value $132 vs. price $72), compared to MA's 14.2% margin of safety (intrinsic $571 vs. $490).

Which stock has a wider economic moat, Edison International or Mastercard Incorporated?▼

MA scores 99/100 (Wide moat), while EIX scores 27/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Edison International in financial distress?▼

EIX's Altman Z-Score of 0.7 places it in the Distress 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 company has better free cash flow, Edison International or Mastercard Incorporated?▼

Mastercard Incorporated (MA) generates a 3.7% free cash flow yield, compared to Edison International's -4.1%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, Edison International or Mastercard Incorporated?▼

MA earns 63.5% ROIC versus EIX's 6.9%. 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, Edison International's or Mastercard Incorporated's?▼

MA's dividend earns a safety score of 94/100 (Very Safe), compared to EIX's 79/100 (Safe). MA has raised its dividend for 3 consecutive years.