WallStSmart

Bread Financial Holdings, Inc. (BFH)vsPayPal Holdings Inc (PYPL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PayPal Holdings Inc generates 1176% more annual revenue ($33.73B vs $2.64B). BFH leads profitability with a 21.2% profit margin vs 15.0%. PYPL appears more attractively valued with a PEG of 0.75. BFH earns a higher WallStSmart Score of 78/100 (B+).

BFH

Strong Buy

78

out of 100

Grade: B+

Growth: 7.3Profit: 7.5Value: 6.3Quality: 4.3
Piotroski: 5/9Altman Z: -0.08

PYPL

Strong Buy

72

out of 100

Grade: B

Growth: 4.7Profit: 8.0Value: 7.7Quality: 6.5
Piotroski: 6/9Altman Z: 1.66

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BFH5 strengths · Avg: 9.4/10
P/E RatioValuation
8.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
34.0%10/10

Strong operational efficiency at 34.0%

Profit MarginProfitability
21.2%9/10

Keeps 21 of every $100 in revenue as profit

EPS GrowthGrowth
49.3%8/10

Earnings expanding 49.3% YoY

PYPL4 strengths · Avg: 8.8/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
25.3%9/10

Every $100 of equity generates 25 in profit

PEG RatioValuation
0.758/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

BFH3 concerns · Avg: 3.0/10
PEG RatioValuation
2.404/10

Expensive relative to growth rate

Debt/EquityHealth
1.173/10

Elevated debt levels

Altman Z-ScoreHealth
-0.082/10

Distress zone — elevated risk

PYPL2 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

EPS GrowthGrowth
-6.2%2/10

Earnings declined 6.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : BFH

The strongest argument for BFH centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.2% and operating margin at 34.0%.

Bull Case : PYPL

The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.75 suggests the stock is reasonably priced for its growth.

Bear Case : BFH

The primary concerns for BFH are PEG Ratio, Debt/Equity, Altman Z-Score.

Bear Case : PYPL

The primary concerns for PYPL are Altman Z-Score, EPS Growth.

Key Dynamics to Monitor

BFH profiles as a mature stock while PYPL is a value play — different risk/reward profiles.

PYPL carries more volatility with a beta of 1.34 — expect wider price swings.

PYPL is growing revenue faster at 7.2% — sustainability is the question.

PYPL generates stronger free cash flow (911M), providing more financial flexibility.

Bottom Line

BFH scores higher overall (78/100 vs 72/100), backed by strong 21.2% margins. 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.

Bread Financial Holdings, Inc.

FINANCIAL SERVICES · CREDIT SERVICES · USA

Bread Financial Holdings Inc. provides lending and payment technology solutions to customers and consumer-based industries in North America. The company is headquartered in Columbus, Ohio.

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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.

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