PayPal Holdings Inc (PYPL)vsSpotify Technology SA (SPOT)
PYPL
PayPal Holdings Inc
$45.37
-1.84%
FINANCIAL SERVICES · Cap: $40.82B
SPOT
Spotify Technology SA
$417.83
-2.25%
COMMUNICATION SERVICES · Cap: $87.44B
Smart Verdict
WallStSmart Research — data-driven comparison
PayPal Holdings Inc generates 92% more annual revenue ($33.73B vs $17.53B). SPOT leads profitability with a 15.4% profit margin vs 15.0%. PYPL appears more attractively valued with a PEG of 0.91. PYPL earns a higher WallStSmart Score of 70/100 (B-).
PYPL
Strong Buy70
out of 100
Grade: B-
SPOT
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for PYPL.
Margin of Safety
-44.3%
Fair Value
$337.63
Current Price
$417.83
$80.20 premium
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
Every $100 of equity generates 38 in profit
Earnings expanding 222.4% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
Distress zone — elevated risk
Earnings declined 6.2%
Expensive relative to growth rate
Moderate valuation
Trading at 8.8x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : PYPL
The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.91 suggests the stock is reasonably priced for its growth.
Bull Case : SPOT
The strongest argument for SPOT centers on Return on Equity, EPS Growth, Market Cap. Profitability is solid with margins at 15.4% and operating margin at 15.8%.
Bear Case : PYPL
The primary concerns for PYPL are Altman Z-Score, EPS Growth.
Bear Case : SPOT
The primary concerns for SPOT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
PYPL profiles as a value stock while SPOT is a mature play — different risk/reward profiles.
SPOT carries more volatility with a beta of 1.55 — expect wider price swings.
SPOT is growing revenue faster at 8.2% — sustainability is the question.
PYPL generates stronger free cash flow (911M), providing more financial flexibility.
Bottom Line
PYPL scores higher overall (70/100 vs 64/100). 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 →Spotify Technology SA
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.
Compare with Other CREDIT SERVICES Stocks
Want to dig deeper into these stocks?