Contrasting Mastercard (NYSE:MA) and TuanChe (NASDAQ:TC)

TuanChe (NASDAQ:TC – Get Rating) and Mastercard (NYSE:MA – Get Rating) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares TuanChe and Mastercard’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TuanChe	N/A	N/A	N/A
Mastercard	42.33%	169.12%	27.24%

Volatility & Risk

TuanChe has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500. Comparatively, Mastercard has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

0.2% of TuanChe shares are owned by institutional investors. Comparatively, 74.5% of Mastercard shares are owned by institutional investors. 0.5% of TuanChe shares are owned by insiders. Comparatively, 0.3% of Mastercard shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for TuanChe and Mastercard, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TuanChe	0	0	0	0	N/A
Mastercard	1	2	18	0	2.81

Mastercard has a consensus target price of $417.27, suggesting a potential upside of 12.76%. Given Mastercard’s higher probable upside, analysts plainly believe Mastercard is more favorable than TuanChe.

Valuation & Earnings

This table compares TuanChe and Mastercard’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TuanChe	$26.56 million	0.48	-$22.93 million	N/A	N/A
Mastercard	$22.82 billion	15.37	$9.93 billion	$10.01	36.97

Mastercard has higher revenue and earnings than TuanChe.

Summary

Mastercard beats TuanChe on 10 of the 11 factors compared between the two stocks.

About TuanChe

(Get Rating)

TuanChe Ltd. operates as a holding company, which engages in the operation of an omni-channel automotive marketplace. It offers auto shows, group-purchase facilitation, and virtual dealership services. The company was founded by Wei Wen and Jian Chen Sun in 2010 and is headquartered in Beijing, China.

About Mastercard

(Get Rating)

Mastercard, Inc. is a technology company, which engages in the payments industry that connects consumers, financial institutions, merchants, governments, and business. It offers payment solutions for the development and implementation of credit, debit, prepaid, commercial, and payment programs. The company was founded in November 1966 and is headquartered in Purchase, NY.