Encore Capital Group Inc (ECPG)vsPayPal Holdings Inc (PYPL)
ECPG
Encore Capital Group Inc
$70.85
-0.18%
FINANCIAL SERVICES · Cap: $1.52B
PYPL
PayPal Holdings Inc
$44.85
+1.45%
FINANCIAL SERVICES · Cap: $41.37B
Smart Verdict
WallStSmart Research — data-driven comparison
PayPal Holdings Inc generates 1775% more annual revenue ($33.17B vs $1.77B). PYPL leads profitability with a 15.8% profit margin vs 14.5%. ECPG appears more attractively valued with a PEG of 0.17. ECPG earns a higher WallStSmart Score of 90/100 (A).
ECPG
Exceptional Buy90
out of 100
Grade: A
PYPL
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+88.8%
Fair Value
$510.59
Current Price
$70.85
$439.74 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
Attractively priced relative to earnings
Strong operational efficiency at 81.8%
Revenue surging 78.3% year-over-year
Every $100 of equity generates 29 in profit
Reasonable price relative to book value
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
1.5% earnings growth
Smaller company, higher risk/reward
3.7% revenue growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ECPG
The strongest argument for ECPG centers on PEG Ratio, P/E Ratio, Operating Margin. Revenue growth of 78.3% demonstrates continued momentum. PEG of 0.17 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 : ECPG
The primary concerns for ECPG are EPS Growth, Market Cap.
Bear Case : PYPL
The primary concerns for PYPL are Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
ECPG profiles as a growth 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.
ECPG is growing revenue faster at 78.3% — sustainability is the question.
PYPL generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
ECPG scores higher overall (90/100 vs 78/100) and 78.3% revenue growth. PYPL offers better value entry with a 82.3% margin of safety. Both earn "Exceptional 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.
Encore Capital Group Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Encore Capital Group, Inc., a specialty finance company, offers debt recovery solutions and other related services to consumers in a variety of financial assets worldwide. The company is headquartered in San Diego, California.
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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