Bread Financial Holdings, Inc. (BFH)vsPayPal Holdings Inc (PYPL)
BFH
Bread Financial Holdings, Inc.
$75.11
+0.83%
FINANCIAL SERVICES · Cap: $3.40B
PYPL
PayPal Holdings Inc
$44.85
+1.45%
FINANCIAL SERVICES · Cap: $41.37B
Smart Verdict
WallStSmart Research — data-driven comparison
PayPal Holdings Inc generates 1174% more annual revenue ($33.17B vs $2.60B). BFH leads profitability with a 19.9% profit margin vs 15.8%. PYPL appears more attractively valued with a PEG of 0.69. BFH earns a higher WallStSmart Score of 82/100 (A-).
BFH
Exceptional Buy82
out of 100
Grade: A-
PYPL
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+85.2%
Fair Value
$512.93
Current Price
$75.11
$437.82 discount
Margin of Safety
+82.3%
Fair Value
$253.19
Current Price
$44.85
$208.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 735.0% YoY
Growing faster than its price suggests
18.5% revenue growth
Attractively priced relative to earnings
Every $100 of equity generates 26 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 39.4% YoY
Generating 2.2B in free cash flow
Areas to Watch
Elevated debt levels
Distress zone — elevated risk
3.7% revenue growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : BFH
The strongest argument for BFH centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 19.9% and operating margin at 16.9%. Revenue growth of 18.5% demonstrates continued momentum.
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.
Bear Case : BFH
The primary concerns for BFH are Debt/Equity, Altman Z-Score.
Bear Case : PYPL
The primary concerns for PYPL are Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
BFH profiles as a growth stock while PYPL is a value play — different risk/reward profiles.
PYPL carries more volatility with a beta of 1.46 — expect wider price swings.
BFH is growing revenue faster at 18.5% — sustainability is the question.
PYPL generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
BFH scores higher overall (82/100 vs 78/100), backed by strong 19.9% margins and 18.5% revenue growth. PYPL offers better value entry with a 82.3% margin of safety. Both earn "Exceptional 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.
Bread Financial Holdings, Inc.
FINANCIAL SERVICES · CREDIT SERVICES · USA
Bread Financial Holdings Inc. provides lending and payment technology solutions to customers and consumer-based industries in North America. The company is headquartered in Columbus, Ohio.
Visit Website →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 →Compare with Other CREDIT SERVICES Stocks
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