WallStSmart

Bank of Montreal (BMO)vsPayPal Holdings Inc (PYPL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Bank of Montreal generates 1% more annual revenue ($33.48B vs $33.17B). BMO leads profitability with a 27.1% profit margin vs 15.8%. PYPL appears more attractively valued with a PEG of 0.69. PYPL earns a higher WallStSmart Score of 78/100 (B+).

BMO

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 10.0Quality: 5.0

PYPL

Strong Buy

78

out of 100

Grade: B+

Growth: 6.7Profit: 8.0Value: 10.0Quality: 7.0
Piotroski: 6/9Altman Z: 1.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BMOUndervalued (+57.3%)

Margin of Safety

+57.3%

Fair Value

$336.32

Current Price

$136.39

$199.93 discount

UndervaluedFair: $336.32Overvalued
PYPLUndervalued (+82.3%)

Margin of Safety

+82.3%

Fair Value

$253.19

Current Price

$44.85

$208.34 discount

UndervaluedFair: $253.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BMO6 strengths · Avg: 8.7/10
Operating MarginProfitability
39.9%10/10

Strong operational efficiency at 39.9%

Market CapQuality
$94.86B9/10

Large-cap with strong market position

Profit MarginProfitability
27.1%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$6.95B8/10

Generating 7.0B in free cash flow

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

Areas to Watch

BMO0 concerns · Avg: 0/10

No major concerns identified

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

Comparative Analysis Report

WallStSmart Research

Bull Case : BMO

The strongest argument for BMO centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.1% and operating margin at 39.9%. PEG of 1.46 suggests the stock is reasonably priced for its growth.

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 : BMO

No major red flags identified for BMO, but monitor valuation.

Bear Case : PYPL

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

Key Dynamics to Monitor

BMO profiles as a mature 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.

BMO is growing revenue faster at 10.0% — sustainability is the question.

BMO generates stronger free cash flow (7.0B), providing more financial flexibility.

Bottom Line

PYPL scores higher overall (78/100 vs 75/100), backed by strong 15.8% margins. BMO offers better value entry with a 57.3% 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.

Bank of Montreal

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Bank of Montreal offers diversified financial services primarily in North America. The company is headquartered in Montreal, Canada.

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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