Comprehensive Stock Comparison
Compare LM Funding America, Inc. (LMFA) vs Mastercard Incorporated (MA) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | LMFA | 77.7% revenue growth vs MA's 16.4% |
| Quality / Margins | MA | 45.6% net margin vs LMFA's -66.5% |
| Stability / Safety | MA | Beta 0.78 vs LMFA's 1.82 |
| Dividends | MA | 0.6% yield; 14-year raise streak; LMFA pays no meaningful dividend |
| Momentum (1Y) | MA | -9.7% vs LMFA's -75.2% |
| Efficiency (ROA) | MA | 27.6% ROA vs LMFA's -12.3%, ROIC 56.5% vs -12.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
LM Funding America is a specialty finance company that purchases delinquent homeowner association assessment accounts from community associations. It generates revenue primarily by collecting on these purchased delinquent accounts — typically through payment plans or legal action — and earns interest and fees on the amounts recovered. The company's key advantage lies in its specialized expertise in HOA collections and its New Neighbor Guaranty program, which provides associations with upfront payments for delinquent accounts.
Mastercard is a global payment technology company that operates a network connecting consumers, merchants, financial institutions, and governments. It generates revenue primarily from transaction processing fees—charging a small percentage of each payment volume—and from service fees for its data analytics, consulting, and security solutions. The company's moat lies in its massive two-sided network effect—the more merchants accept Mastercard, the more valuable it becomes to cardholders, and vice versa—creating a powerful ecosystem that's difficult to replicate.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
MA leads in 5 of 6 categories (Financial Metrics, Profitability & Efficiency). LMFA leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
MA is the larger business by revenue, generating $32.8B annually — 2981.1x LMFA's $11M. MA is the more profitable business, keeping 45.6% of every revenue dollar as net income compared to LMFA's -66.5%.
| Metric | LMFALM Funding Americ… | MAMastercard Incorp… |
|---|---|---|
| RevenueTrailing 12 months | $11M | $32.8B |
| EBITDAEarnings before interest/tax | -$264,638 | $20.5B |
| Net IncomeAfter-tax profit | -$7M | $15.0B |
| Free Cash FlowCash after capex | -$14M | $17.1B |
| Gross MarginGross profit ÷ Revenue | +36.4% | +83.4% |
| Operating MarginEBIT ÷ Revenue | -58.7% | +59.2% |
| Net MarginNet income ÷ Revenue | -66.5% | +45.6% |
| FCF MarginFCF ÷ Revenue | -124.4% | +52.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +100.0% | +24.2% |
Valuation Metrics
On an enterprise value basis, LMFA's 7.7x EV/EBITDA is more attractive than MA's 22.7x.
| Metric | LMFALM Funding Americ… | MAMastercard Incorp… |
|---|---|---|
| Market CapShares × price | $6M | $457.8B |
| Enterprise ValueMkt cap + debt − cash | $10M | $465.7B |
| Trailing P/EPrice ÷ TTM EPS | -0.14x | 31.31x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 26.43x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.49x |
| EV / EBITDAEnterprise value multiple | 7.70x | 22.67x |
| Price / SalesMarket cap ÷ Revenue | 0.53x | 13.96x |
| Price / BookPrice ÷ Book value/share | 0.03x | 59.96x |
| Price / FCFMarket cap ÷ FCF | — | 26.68x |
Profitability & Efficiency
MA delivers a 193.0% return on equity — every $100 of shareholder capital generates $193 in annual profit, vs $-15 for LMFA. LMFA carries lower financial leverage with a 0.22x debt-to-equity ratio, signaling a more conservative balance sheet compared to MA's 2.45x. On the Piotroski fundamental quality scale (0–9), MA scores 9/9 vs LMFA's 3/9, reflecting strong financial health.
| Metric | LMFALM Funding Americ… | MAMastercard Incorp… |
|---|---|---|
| ROE (TTM)Return on equity | -15.3% | +193.0% |
| ROA (TTM)Return on assets | -12.3% | +27.6% |
| ROICReturn on invested capital | -12.3% | +56.5% |
| ROCEReturn on capital employed | -16.4% | +64.4% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 9 |
| Debt / EquityFinancial leverage | 0.22x | 2.45x |
| Net DebtTotal debt minus cash | $4M | $7.9B |
| Cash & Equiv.Liquid assets | $3M | $11.1B |
| Total DebtShort + long-term debt | $8M | $19.0B |
| Interest CoverageEBIT ÷ Interest expense | -3.92x | 26.39x |
Total Returns (with DRIP)
A $10,000 investment in MA five years ago would be worth $14,586 today (with dividends reinvested), compared to $78 for LMFA. Over the past 12 months, MA leads with a -9.7% total return vs LMFA's -75.2%. The 3-year compound annual growth rate (CAGR) favors MA at 13.9% vs LMFA's -63.8% — a key indicator of consistent wealth creation.
| Metric | LMFALM Funding Americ… | MAMastercard Incorp… |
|---|---|---|
| YTD ReturnYear-to-date | -22.8% | -8.0% |
| 1-Year ReturnPast 12 months | -75.2% | -9.7% |
| 3-Year ReturnCumulative with dividends | -95.3% | +47.9% |
| 5-Year ReturnCumulative with dividends | -99.2% | +45.9% |
| 10-Year ReturnCumulative with dividends | +20.2% | +515.7% |
| CAGR (3Y)Annualised 3-year return | -63.8% | +13.9% |
Risk & Volatility
MA is the less volatile stock with a 0.78 beta — it tends to amplify market swings less than LMFA's 1.82 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MA currently trades 85.9% from its 52-week high vs LMFA's 7.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LMFALM Funding Americ… | MAMastercard Incorp… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.82x | 0.78x |
| 52-Week HighHighest price in past year | $5.14 | $601.77 |
| 52-Week LowLowest price in past year | $0.29 | $465.59 |
| % of 52W HighCurrent price vs 52-week peak | +7.3% | +85.9% |
| RSI (14)Momentum oscillator 0–100 | 50.0 | 42.8 |
| Avg Volume (50D)Average daily shares traded | 372K | 3.2M |
Analyst Outlook
MA is the only dividend payer here at 0.59% yield — a key consideration for income-focused portfolios.
| Metric | LMFALM Funding Americ… | MAMastercard Incorp… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Buy |
| Price TargetConsensus 12-month target | — | $667.00 |
| # AnalystsCovering analysts | — | 63 |
| Dividend YieldAnnual dividend ÷ price | — | +0.6% |
| Dividend StreakConsecutive years of raises | 1 | 14 |
| Dividend / ShareAnnual DPS | — | $3.07 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +2.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| LM Funding America,… (LMFA) | 100 | 1.41 | -98.6% |
| Mastercard Incorpor… (MA) | 100 | 181.06 | +81.1% |
Mastercard Incorpor… (MA) returned +46% over 5 years vs LM Funding America,… (LMFA)'s -99%. A $10,000 investment in MA 5 years ago would be worth $14,586 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| LM Funding America,… (LMFA) | $5M | $11M | +138.8% |
| Mastercard Incorpor… (MA) | $10.8B | $32.8B | +204.3% |
Mastercard Incorporated's revenue grew from $10.8B (2016) to $32.8B (2025) — a 13.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| LM Funding America,… (LMFA) | -51.5% | -66.5% | -29.3% |
| Mastercard Incorpor… (MA) | 37.7% | 45.6% | +21.2% |
Mastercard Incorporated's net margin went from 38% (2016) to 46% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Mastercard Incorpor… (MA) | 41.5 | 34.6 | -16.6% |
Mastercard Incorporated has traded in a 34x–56x P/E range over 9 years; current trailing P/E is ~31x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| LM Funding America,… (LMFA) | -35.91 | -2.61 | +92.7% |
| Mastercard Incorpor… (MA) | 3.69 | 16.52 | +347.7% |
Mastercard Incorporated's EPS grew from $3.69 (2016) to $16.52 (2025) — a 18% CAGR.
Chart 6Free Cash Flow — 5 Years
LM Funding America, Inc. generated $-14M FCF in 2024 (+7% vs 2021). Mastercard Incorporated generated $17B FCF in 2025 (+98% vs 2021).
LMFA vs MA: Frequently Asked Questions
7 questions · data-driven answers · updated daily
01Is LMFA or MA a better buy right now?
Mastercard Incorporated (MA) offers the better valuation at 31.3x trailing P/E (26.4x forward), making it the more compelling value choice. Analysts rate Mastercard Incorporated (MA) a "Buy" — based on 63 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — LMFA or MA?
Over the past 5 years, Mastercard Incorporated (MA) delivered a total return of +45.9%, compared to -99.2% for LM Funding America, Inc. (LMFA). A $10,000 investment in MA five years ago would be worth approximately $15K today (assuming dividends reinvested). Over 10 years, the gap is even starker: MA returned +515.7% versus LMFA's +20.2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — LMFA or MA?
By beta (market sensitivity over 5 years), Mastercard Incorporated (MA) is the lower-risk stock at 0.78β versus LM Funding America, Inc.'s 1.82β — meaning LMFA is approximately 135% more volatile than MA relative to the S&P 500. On balance sheet safety, LM Funding America, Inc. (LMFA) carries a lower debt/equity ratio of 22% versus 2% for Mastercard Incorporated — giving it more financial flexibility in a downturn.
04Which has better profit margins — LMFA or MA?
Mastercard Incorporated (MA) is the more profitable company, earning 45.6% net margin versus -66.5% for LM Funding America, Inc. — meaning it keeps 45.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MA leads at 59.2% versus -58.7% for LMFA. At the gross margin level — before operating expenses — MA leads at 83.4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Which pays a better dividend — LMFA or MA?
In this comparison, MA (0.6% yield) pays a dividend. LMFA does not pay a meaningful dividend and should not be held primarily for income.
06Is LMFA or MA better for a retirement portfolio?
For long-horizon retirement investors, Mastercard Incorporated (MA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.78), 0.6% yield, +515.7% 10Y return). LM Funding America, Inc. (LMFA) carries a higher beta of 1.82 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (MA: +515.7%, LMFA: +20.2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
07What are the main differences between LMFA and MA?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. MA pays a dividend while LMFA does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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