Forge Global (NYSE:FRGE – Get Free Report) and Mastercard (NYSE:MA – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.
Insider & Institutional Ownership
40.7% of Forge Global shares are owned by institutional investors. Comparatively, 97.3% of Mastercard shares are owned by institutional investors. 4.5% of Forge Global shares are owned by company insiders. Comparatively, 0.1% of Mastercard shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Forge Global and Mastercard”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Forge Global | $92.88 million | 6.71 | -$66.33 million | ($5.20) | -8.65 |
| Mastercard | $32.79 billion | 15.54 | $14.97 billion | $18.18 | 32.00 |
Mastercard has higher revenue and earnings than Forge Global. Forge Global is trading at a lower price-to-earnings ratio than Mastercard, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Forge Global and Mastercard’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Forge Global | -71.87% | -29.06% | -24.63% |
| Mastercard | 46.34% | 239.99% | 30.88% |
Volatility and Risk
Forge Global has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500. Comparatively, Mastercard has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Forge Global and Mastercard, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Forge Global | 1 | 4 | 0 | 0 | 1.80 |
| Mastercard | 1 | 0 | 25 | 5 | 3.10 |
Forge Global presently has a consensus target price of $45.00, suggesting a potential upside of 0.00%. Mastercard has a consensus target price of $666.64, suggesting a potential upside of 14.58%. Given Mastercard’s stronger consensus rating and higher probable upside, analysts plainly believe Mastercard is more favorable than Forge Global.
Summary
Mastercard beats Forge Global on 13 of the 15 factors compared between the two stocks.
About Forge Global
Forge Global Holdings, Inc. operates a financial services platform in California. The company's platform solutions include trading solutions, a platform that connects investors with private company stockholders and enables them to facilitate private share transactions; and custody solutions, a non-depository trust company that enables clients to securely custody and manage assets through an online portal. It also provides data solutions, such as information and insight to navigate, analyze, and make investment decisions to market participants in the private market. The company was founded in 2014 and is headquartered in San Francisco, California.
About Mastercard
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions. It also provides solutions that enable businesses or governments to make payments to businesses, including Virtual Card Number, which is generated dynamically from a physical card and leverages the credit limit of the funding account; a platform to optimize supplier payment enablement campaigns for financial institutions; and treasury intelligence platform that offers corporations with recommendations to enhance working capital performance and accelerate spend on cards. In addition, the company offers Mastercard Send, which partners with digital messaging and payment platforms to enable consumers to send money directly within applications to other consumers; and Mastercard Cross-Border Services enables a range of payment flows through a distribution network with a single point of access to send and receive money globally through various channels, including bank accounts, mobile wallets, cards, and cash payouts. Further, it provides cyber and intelligence solutions; insights and analytics, consulting, marketing, loyalty, processing, and payment gateway solutions for e-commerce merchants; and open banking and digital identity services. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus name. Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York.
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