Capital One Financial Corporation (COF)vsPayPal Holdings Inc (PYPL)
COF
Capital One Financial Corporation
$179.67
-0.26%
FINANCIAL SERVICES · Cap: $114.07B
PYPL
PayPal Holdings Inc
$44.59
-0.90%
FINANCIAL SERVICES · Cap: $42.50B
Smart Verdict
WallStSmart Research — data-driven comparison
PayPal Holdings Inc generates 1% more annual revenue ($33.17B vs $32.78B). PYPL leads profitability with a 15.8% profit margin vs 7.5%. COF appears more attractively valued with a PEG of 0.19. PYPL earns a higher WallStSmart Score of 78/100 (B+).
COF
Strong Buy75
out of 100
Grade: B+
PYPL
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-50.8%
Fair Value
$142.20
Current Price
$179.67
$37.47 premium
Margin of Safety
+82.5%
Fair Value
$253.19
Current Price
$44.59
$208.60 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Revenue surging 51.6% year-over-year
Large-cap with strong market position
Strong operational efficiency at 22.9%
Earnings expanding 22.2% YoY
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
ROE of 2.4% — below average capital efficiency
7.5% margin — thin
Premium valuation, high expectations priced in
3.7% revenue growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : COF
The strongest argument for COF centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 51.6% demonstrates continued momentum. PEG of 0.19 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 0.71 suggests the stock is reasonably priced for its growth.
Bear Case : COF
The primary concerns for COF are Return on Equity, Profit Margin, P/E Ratio. A P/E of 54.6x leaves little room for execution misses.
Bear Case : PYPL
The primary concerns for PYPL are Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
COF profiles as a hypergrowth stock while PYPL is a value play — different risk/reward profiles.
PYPL carries more volatility with a beta of 1.46 — expect wider price swings.
COF is growing revenue faster at 51.6% — sustainability is the question.
COF generates stronger free cash flow (6.7B), providing more financial flexibility.
Bottom Line
PYPL scores higher overall (78/100 vs 75/100), backed by strong 15.8% 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.
Capital One Financial Corporation
FINANCIAL SERVICES · CREDIT SERVICES · USA
Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States.
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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