SafetyMargin.ioSafetyMargin.io
BlogWatchlistCompare
Compare Stocks › MA vs ON

Mastercard Incorporated (MA) vs ON Semiconductor Corporation (ON): Which Is the Better Buy in 2026?

As of 2026-06-19, MA is fairly valued at $490, with a DCF intrinsic value of $571 and a margin of safety of 14%. ON is undervalued at $122, with an intrinsic value of $337 and a margin of safety of 64%. Of the two, ON has the wider margin of safety.

MA
Mastercard Incorporated
$489.79
VS
ON
ON Semiconductor Corporation
$121.62

Rewards

MA
  • ★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.
ON
  • ★PEG ratio of 0.39 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
  • ★Altman Z-Score of 4.70 indicates very low bankruptcy risk — the company is firmly in the safe zone.

Risks

MA
  • ⚠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.
ON
  • ⚠ROIC has declined by 17.0 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠FCF yield of 2.7% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • ⚠Trailing P/E of 89.4x is 53% above the historical average of 58.6x — the stock trades at a premium to its own history.

Key Valuation Metrics

Learn more →
MA
ON
Valuation
$16.15B
Free Cash Flow
$1.28B
3.73%
FCF Yield
2.71%
28.31
Trailing P/E
89.43
21.50
Forward P/E
28.40
Quality & Moat
63.51%
ROIC
8.26%
232.08%
ROE
7.49%
100.00%
Gross Margin
42.67%
1.54
PEG Ratio
0.39
Balance Sheet Safety
1.60
Net Debt / Equity
0.12
N/A
Interest Coverage
N/A
0.50
Net Debt / EBITDA
0.41
0.69%
Dividend Yield
0.00%
MA: 8Ties: 1ON: 3
MAON

Historical Fundamentals

Learn more →
MA

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.

ON

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 →
MA
$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
ON
$-1.41
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$3.88B
Δ Market Cap
$-5.46B
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

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 →
MA
14.2% Margin of Safety
Price is 14.2% below estimated fair value
Current Price: $489.79
Fair Value: $571.14
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
ON
36.9% Overvalued
Price is 36.9% above estimated fair value
Current Price: $121.62
Fair Value: $88.83
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

Learn more →
MA

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.

ON

What growth rate is the market pricing in at $122?

+30.4%
Market-Implied Owner Earnings Growth
Standard FCF implies +16.3%

The market implies +30.4% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +16.3%, reflecting heavy growth investment.

Economic Moat Score

Learn more →
MA
99/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

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

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.
ON
41/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with roic consistency as the key competitive advantage. Improving margin stability would strengthen the moat.

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.

Forensic Accounting

Learn more →
MA
-2.53
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.
ON
-3.04
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.

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 →
MA
Insiders 0.1%Institutions 91.6%Retail & Other 8.3%
No. of Institutional Holders4,804
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.
ON
Insiders 0.3%Institutions 108.9%
No. of Institutional Holders1,223
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.

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

Insider Buying Activity

Learn more →
MA
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
ON
0
Buys (3M)
0
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

Learn more →
MA
0
Sells (3M)
12
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
ON
2
Sells (3M)
9
Sells (12M)
Total value (12M): $20.83M
THAD TRENT
Chief Financial Officer
$5.79M
@ $96.50 · 2026-04-24
THAD TRENT
Chief Financial Officer
$2.40M
@ $80.00 · 2026-04-16
GOPALSWAMY SUDHIR
Officer
$358,708
@ $58.67 · 2026-03-13
KEETON SIMON
Officer
$3.51M
@ $71.75 · 2026-02-17
EL KHOURY HASSANE
Chief Executive Officer
$1.46M
@ $73.02 · 2026-02-12
THAD TRENT
Chief Financial Officer
$4.27M
@ $71.22 · 2026-02-12
KEETON SIMON
Officer
$1.17M
@ $55.72 · 2025-12-04
THAD TRENT
Chief Financial Officer
$1.10M
@ $55.05 · 2025-12-03
EL KHOURY HASSANE
Chief Executive Officer
$768,260
@ $51.22 · 2025-08-13
CAMPBELL ALAN
Director
$274,780
@ $51.16 · 2025-06-12
CAMPBELL ALAN
Director
$432,257
@ $43.23 · 2025-03-12
KEETON SIMON
Officer
$1.92M
@ $68.56 · 2024-12-17
GOPALSWAMY SUDHIR
Officer
$1.43M
@ $67.64 · 2024-12-17
EL KHOURY HASSANE
Chief Executive Officer
$105,000
@ $70.00 · 2024-12-17
EL KHOURY HASSANE
Chief Executive Officer
$106,500
@ $71.00 · 2024-11-25
EL KHOURY HASSANE
Chief Executive Officer
$109,065
@ $72.71 · 2024-10-15
EL KHOURY HASSANE
Chief Executive Officer
$106,200
@ $70.80 · 2024-09-16
KEETON SIMON
Officer
$2.41M
@ $77.94 · 2024-07-31
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

Learn more →
MA
FearGreed
😐Neutral(47/100)

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

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.
ON
FearGreed
😐Neutral(50/100)

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

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.

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 →
MA
⚪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)
ON
⚪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 (50)
View MA Full AnalysisView ON Full Analysis

Frequently Asked Questions: MA vs ON

Is Mastercard Incorporated or ON Semiconductor Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, ON trades at a 63.9% margin of safety (intrinsic value $337 vs. price $122), compared to MA's 14.2% margin of safety (intrinsic $571 vs. $490).

Which stock has a wider economic moat, Mastercard Incorporated or ON Semiconductor Corporation?▼

MA scores 99/100 (Wide moat), while ON scores 41/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Which company has better free cash flow, Mastercard Incorporated or ON Semiconductor Corporation?▼

Mastercard Incorporated (MA) generates a 3.7% free cash flow yield, compared to ON Semiconductor Corporation's 2.7%. 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, Mastercard Incorporated or ON Semiconductor Corporation?▼

MA earns 63.5% ROIC versus ON's 8.3%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.