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HPS vs MA

HPS
John Hancock Preferred Income Fund III
NEUTRAL
Price
$14.55
Market Cap
$468.1M
Sector
Financial Services
AI Confidence
85%
MA
Mastercard Incorporated
NEUTRAL
Price
$499.66
Market Cap
$445.92B
Sector
Financial Services
AI Confidence
80%

Valuation

P/E Ratio
HPS
12.44
MA
30.28
Forward P/E
HPS
--
MA
22.05
P/B Ratio
HPS
1.01
MA
57.74
P/S Ratio
HPS
9.13
MA
13.6
EV/EBITDA
HPS
--
MA
22.13

Profitability

Gross Margin
HPS
100.0%
MA
100.0%
Operating Margin
HPS
88.5%
MA
57.73%
Profit Margin
HPS
73.63%
MA
45.65%
ROE
HPS
8.14%
MA
209.91%
ROA
HPS
3.82%
MA
23.72%

Growth

Revenue Growth
HPS
1.1%
MA
17.6%
Earnings Growth
HPS
-5.1%
MA
24.2%

Financial Health

Debt/Equity
HPS
0.59
MA
2.56
Current Ratio
HPS
2.82
MA
1.03
Quick Ratio
HPS
1.48
MA
0.68

Dividends

Dividend Yield
HPS
9.07%
MA
0.7%
Payout Ratio
HPS
112.82%
MA
18.4%

AI Verdict

HPS NEUTRAL

HPS presents as a stable but stagnant income vehicle, characterized by a Piotroski F-Score of 6/9 indicating stable financial health. While the Graham Number of $19.45 suggests a defensive undervaluation, this is countered by a low growth-based intrinsic value of $8.19 and a bearish technical trend. The primary concern is a dividend payout ratio of 112.82%, which indicates the current 9.07% yield is unsustainable and being funded by capital rather than earnings. Overall, the fund is a classic yield trap with strong margins but declining earnings growth.

Strengths
Strong profit margins (73.63%) and operating margins (88.50%)
Trading near book value (P/B 1.01)
Low Debt/Equity ratio (0.59) compared to sector average (1.38)
Risks
Unsustainable dividend payout ratio (112.82%)
Negative earnings growth (-5.10% YoY and -4.80% Q/Q)
Stagnant revenue growth (1.10% YoY)
MA NEUTRAL

MA shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (45.6% margin)
Strong revenue growth of 17.6%
Strong ROE of 209.9%
Risks
High valuation with P/E of 30.3
Premium vs Graham Number ($56.68)
High debt burden with D/E of 2.56

Compare Another Pair

HPS vs MA: Head-to-Head Comparison

This page compares John Hancock Preferred Income Fund III (HPS) and Mastercard Incorporated (MA) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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