WallStSmart

PayPal Holdings Inc (PYPL)vsBanco Santander SA ADR (SAN)

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Smart Verdict

WallStSmart Research — data-driven comparison

Banco Santander SA ADR generates 41% more annual revenue ($46.84B vs $33.17B). SAN leads profitability with a 30.1% profit margin vs 15.8%. PYPL appears more attractively valued with a PEG of 0.69. PYPL earns a higher WallStSmart Score of 78/100 (B+).

PYPL

Strong Buy

78

out of 100

Grade: B+

Growth: 6.7Profit: 8.0Value: 10.0Quality: 7.0
Piotroski: 6/9Altman Z: 1.66

SAN

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 7.5Value: 7.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.38
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PYPLUndervalued (+82.3%)

Margin of Safety

+82.3%

Fair Value

$253.19

Current Price

$44.85

$208.34 discount

UndervaluedFair: $253.19Overvalued
SANUndervalued (+72.4%)

Margin of Safety

+72.4%

Fair Value

$45.40

Current Price

$10.90

$34.50 discount

UndervaluedFair: $45.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PYPL6 strengths · Avg: 8.5/10
P/E RatioValuation
8.2x10/10

Attractively priced relative to earnings

Return on EquityProfitability
25.7%9/10

Every $100 of equity generates 26 in profit

PEG RatioValuation
0.698/10

Growing faster than its price suggests

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
39.4%8/10

Earnings expanding 39.4% YoY

Free Cash FlowQuality
$2.19B8/10

Generating 2.2B in free cash flow

SAN6 strengths · Avg: 9.5/10
P/E RatioValuation
11.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
30.1%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
43.7%10/10

Strong operational efficiency at 43.7%

Market CapQuality
$163.16B9/10

Large-cap with strong market position

EPS GrowthGrowth
25.3%8/10

Earnings expanding 25.3% YoY

Areas to Watch

PYPL2 concerns · Avg: 4.0/10
Revenue GrowthGrowth
3.7%4/10

3.7% revenue growth

Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

SAN4 concerns · Avg: 1.8/10
PEG RatioValuation
2.532/10

Expensive relative to growth rate

Revenue GrowthGrowth
-6.4%2/10

Revenue declined 6.4%

Altman Z-ScoreHealth
0.382/10

Distress zone — elevated risk

Debt/EquityHealth
4.471/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : SAN

The strongest argument for SAN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 30.1% and operating margin at 43.7%.

Bear Case : PYPL

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

Bear Case : SAN

The primary concerns for SAN are PEG Ratio, Revenue Growth, Altman Z-Score. Debt-to-equity of 4.47 is elevated, increasing financial risk.

Key Dynamics to Monitor

PYPL profiles as a value stock while SAN is a declining play — different risk/reward profiles.

PYPL carries more volatility with a beta of 1.46 — expect wider price swings.

PYPL is growing revenue faster at 3.7% — sustainability is the question.

Monitor CREDIT SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PYPL scores higher overall (78/100 vs 63/100), backed by strong 15.8% margins. SAN offers better value entry with a 72.4% margin of safety. 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.

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Banco Santander SA ADR

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Banco Santander, SA, offers various commercial and retail banking products and services to individuals, small and medium-sized companies and large companies worldwide. The company is headquartered in Madrid, Spain.

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