WallStSmart

PayPal Holdings Inc (PYPL)vsUpstart Holdings Inc (UPST)

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Smart Verdict

WallStSmart Research — data-driven comparison

PayPal Holdings Inc generates 2984% more annual revenue ($33.17B vs $1.08B). PYPL leads profitability with a 15.8% profit margin vs 5.0%. 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

UPST

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 4.5Value: 3.0Quality: 5.8
Piotroski: 5/9Altman Z: 0.83
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
UPSTSignificantly Overvalued (-57.2%)

Margin of Safety

-57.2%

Fair Value

$21.06

Current Price

$26.09

$5.03 premium

UndervaluedFair: $21.06Overvalued

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

UPST1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
34.4%10/10

Revenue surging 34.4% year-over-year

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

UPST4 concerns · Avg: 3.0/10
EPS GrowthGrowth
2.1%4/10

2.1% earnings growth

Return on EquityProfitability
7.5%3/10

ROE of 7.5% — below average capital efficiency

Profit MarginProfitability
5.0%3/10

5.0% margin — thin

P/E RatioValuation
57.7x2/10

Premium valuation, high expectations priced in

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 : UPST

The strongest argument for UPST centers on Revenue Growth. Revenue growth of 34.4% demonstrates continued momentum.

Bear Case : PYPL

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

Bear Case : UPST

The primary concerns for UPST are EPS Growth, Return on Equity, Profit Margin. A P/E of 57.7x leaves little room for execution misses. Thin 5.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

PYPL profiles as a value stock while UPST is a hypergrowth play — different risk/reward profiles.

UPST carries more volatility with a beta of 2.19 — expect wider price swings.

UPST is growing revenue faster at 34.4% — 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 51/100), backed by strong 15.8% 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.

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Upstart Holdings Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Upstart Holdings, Inc. operates a cloud-based artificial intelligence (AI) lending platform. The company is headquartered in San Mateo, California.

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