PayPal Holdings Inc (PYPL)vsRoyal Bank of Canada (RY)
PYPL
PayPal Holdings Inc
$55.04
+4.64%
FINANCIAL SERVICES · Cap: $44.83B
RY
Royal Bank of Canada
$201.98
+1.24%
FINANCIAL SERVICES · Cap: $281.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 97% more annual revenue ($67.15B vs $34.13B). RY leads profitability with a 33.9% profit margin vs 14.4%. PYPL appears more attractively valued with a PEG of 0.93. RY earns a higher WallStSmart Score of 66/100 (B-).
PYPL
Buy65
out of 100
Grade: C+
RY
Strong Buy66
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 25 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Generating 1.8B in free cash flow
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
4.8% revenue growth
Distress zone — elevated risk
Earnings declined 3.1%
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : PYPL
The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.93 suggests the stock is reasonably priced for its growth.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.9% and operating margin at 46.4%.
Bear Case : PYPL
The primary concerns for PYPL are Revenue Growth, Altman Z-Score, EPS Growth.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.
Key Dynamics to Monitor
PYPL profiles as a value stock while RY is a mature play — different risk/reward profiles.
PYPL carries more volatility with a beta of 1.29 — expect wider price swings.
RY is growing revenue faster at 8.9% — sustainability is the question.
PYPL generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
RY scores higher overall (66/100 vs 65/100), backed by strong 33.9% margins. Both earn "Strong Buy" and "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.
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 →Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
Compare with Other CREDIT SERVICES Stocks
Want to dig deeper into these stocks?