WallStSmart

Ally Financial Inc (ALLY)vsPayPal Holdings Inc (PYPL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PayPal Holdings Inc generates 339% more annual revenue ($33.73B vs $7.69B). ALLY leads profitability with a 18.2% profit margin vs 15.0%. ALLY appears more attractively valued with a PEG of 0.50. ALLY earns a higher WallStSmart Score of 79/100 (B+).

ALLY

Strong Buy

79

out of 100

Grade: B+

Growth: 8.0Profit: 6.5Value: 8.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.04

PYPL

Strong Buy

72

out of 100

Grade: B

Growth: 4.7Profit: 8.0Value: 7.7Quality: 6.5
Piotroski: 6/9Altman Z: 1.66

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALLY6 strengths · Avg: 9.3/10
PEG RatioValuation
0.5010/10

Growing faster than its price suggests

P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
265.4%10/10

Earnings expanding 265.4% YoY

Operating MarginProfitability
21.0%8/10

Strong operational efficiency at 21.0%

Revenue GrowthGrowth
19.7%8/10

19.7% revenue growth

PYPL4 strengths · Avg: 8.8/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
25.3%9/10

Every $100 of equity generates 25 in profit

PEG RatioValuation
0.758/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

ALLY2 concerns · Avg: 2.5/10
Debt/EquityHealth
1.383/10

Elevated debt levels

Altman Z-ScoreHealth
0.042/10

Distress zone — elevated risk

PYPL2 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

EPS GrowthGrowth
-6.2%2/10

Earnings declined 6.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : ALLY

The strongest argument for ALLY centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 18.2% and operating margin at 21.0%. Revenue growth of 19.7% demonstrates continued momentum.

Bull Case : PYPL

The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.75 suggests the stock is reasonably priced for its growth.

Bear Case : ALLY

The primary concerns for ALLY are Debt/Equity, Altman Z-Score.

Bear Case : PYPL

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

Key Dynamics to Monitor

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

PYPL carries more volatility with a beta of 1.34 — expect wider price swings.

ALLY is growing revenue faster at 19.7% — sustainability is the question.

PYPL generates stronger free cash flow (911M), providing more financial flexibility.

Bottom Line

ALLY scores higher overall (79/100 vs 72/100), backed by strong 18.2% margins and 19.7% revenue growth. 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.

Ally Financial Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Ally Financial Inc., a banking holding company, offers a variety of digital financial products and services to consumers, business and corporate clients primarily in the United States and Canada. The company is headquartered in Detroit, Michigan.

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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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