Ally Financial Inc (ALLY)vsPayPal Holdings Inc (PYPL)
ALLY
Ally Financial Inc
$39.23
-0.73%
FINANCIAL SERVICES · Cap: $12.22B
PYPL
PayPal Holdings Inc
$44.85
+1.45%
FINANCIAL SERVICES · Cap: $41.37B
Smart Verdict
WallStSmart Research — data-driven comparison
PayPal Holdings Inc generates 350% more annual revenue ($33.17B vs $7.37B). PYPL leads profitability with a 15.8% profit margin vs 11.6%. ALLY appears more attractively valued with a PEG of 0.42. ALLY earns a higher WallStSmart Score of 80/100 (B+).
ALLY
Strong Buy80
out of 100
Grade: B+
PYPL
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+62.4%
Fair Value
$110.92
Current Price
$39.23
$71.69 discount
Margin of Safety
+82.3%
Fair Value
$253.19
Current Price
$44.85
$208.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Attractively priced relative to earnings
Strong operational efficiency at 20.4%
Attractively priced relative to earnings
Every $100 of equity generates 26 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 39.4% YoY
Generating 2.2B in free cash flow
Areas to Watch
2.7% earnings growth
ROE of 5.8% — below average capital efficiency
Elevated debt levels
Negative free cash flow — burning cash
3.7% revenue growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ALLY
The strongest argument for ALLY centers on PEG Ratio, Price/Book, P/E Ratio. Revenue growth of 12.0% demonstrates continued momentum. PEG of 0.42 suggests the stock is reasonably priced for its growth.
Bull Case : PYPL
The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. Profitability is solid with margins at 15.8% and operating margin at 17.5%. PEG of 0.69 suggests the stock is reasonably priced for its growth.
Bear Case : ALLY
The primary concerns for ALLY are EPS Growth, Return on Equity, Debt/Equity.
Bear Case : PYPL
The primary concerns for PYPL are Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
PYPL carries more volatility with a beta of 1.46 — expect wider price swings.
ALLY is growing revenue faster at 12.0% — sustainability is the question.
PYPL generates stronger free cash flow (2.2B), providing more financial flexibility.
Monitor CREDIT SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ALLY scores higher overall (80/100 vs 78/100) and 12.0% revenue growth. PYPL offers better value entry with a 82.3% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ally Financial Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Ally Financial Inc., a banking holding company, offers a variety of digital financial products and services to consumers, business and corporate clients primarily in the United States and Canada. The company is headquartered in Detroit, Michigan.
Visit Website →PayPal Holdings Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
PayPal Holdings, Inc. is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee.
Visit Website →Compare with Other CREDIT SERVICES Stocks
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