WallStSmart

PayPal Holdings Inc (PYPL)vsSLM Corp Pb Pref (SLMBP)

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Smart Verdict

WallStSmart Research — data-driven comparison

PayPal Holdings Inc generates 1908% more annual revenue ($33.17B vs $1.65B). SLMBP leads profitability with a 45.1% profit margin vs 15.8%. PYPL trades at a lower P/E of 8.2x. 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

SLMBP

Strong Buy

68

out of 100

Grade: B-

Growth: 8.7Profit: 8.5Value: 7.7Quality: 5.5
Piotroski: 6/9Altman Z: 0.63
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
SLMBPUndervalued (+24.6%)

Margin of Safety

+24.6%

Fair Value

$100.39

Current Price

$74.50

$25.89 discount

UndervaluedFair: $100.39Overvalued

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

SLMBP5 strengths · Avg: 10.0/10
Return on EquityProfitability
32.3%10/10

Every $100 of equity generates 32 in profit

Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
66.8%10/10

Strong operational efficiency at 66.8%

Revenue GrowthGrowth
67.8%10/10

Revenue surging 67.8% year-over-year

EPS GrowthGrowth
126.2%10/10

Earnings expanding 126.2% 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

SLMBP3 concerns · Avg: 2.3/10
P/E RatioValuation
35.0x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.632/10

Distress zone — elevated risk

Debt/EquityHealth
2.391/10

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 : SLMBP

The strongest argument for SLMBP centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 45.1% and operating margin at 66.8%. Revenue growth of 67.8% demonstrates continued momentum.

Bear Case : PYPL

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

Bear Case : SLMBP

The primary concerns for SLMBP are P/E Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.39 is elevated, increasing financial risk.

Key Dynamics to Monitor

PYPL profiles as a value stock while SLMBP is a growth play — different risk/reward profiles.

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

SLMBP is growing revenue faster at 67.8% — sustainability is the question.

PYPL generates stronger free cash flow (2.2B), providing more financial flexibility.

Bottom Line

PYPL scores higher overall (78/100 vs 68/100), backed by strong 15.8% margins. SLMBP offers better value entry with a 24.6% margin of safety. 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.

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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SLM Corp Pb Pref

FINANCIAL SERVICES · CREDIT SERVICES · USA

SLM Corporation originates and provides private education loan services to students and their families to finance the cost of their education in the United States. The company is headquartered in Newark, Delaware.

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