WallStSmart

Capital One Financial Corporation (COF)vsPayPal Holdings Inc (PYPL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Capital One Financial Corporation generates 41% more annual revenue ($48.11B vs $34.13B). COF leads profitability with a 21.9% profit margin vs 14.4%. COF appears more attractively valued with a PEG of 0.22. COF earns a higher WallStSmart Score of 75/100 (B).

COF

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 7.0Value: 5.7Quality: 4.0
Piotroski: 2/9Altman Z: -0.36

PYPL

Buy

63

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.66

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COF6 strengths · Avg: 9.7/10
PEG RatioValuation
0.2210/10

Growing faster than its price suggests

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Revenue GrowthGrowth
46.3%10/10

Revenue surging 46.3% year-over-year

Market CapQuality
$123.53B9/10

Large-cap with strong market position

Profit MarginProfitability
21.9%9/10

Keeps 22 of every $100 in revenue as profit

PYPL4 strengths · Avg: 8.8/10
P/E RatioValuation
10.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
24.7%9/10

Every $100 of equity generates 25 in profit

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.77B8/10

Generating 1.8B in free cash flow

Areas to Watch

COF4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
63.3x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-3.2%2/10

Earnings declined 3.2%

Altman Z-ScoreHealth
-0.362/10

Distress zone — elevated risk

PYPL3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : COF

The strongest argument for COF centers on PEG Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.9% and operating margin at 33.6%. Revenue growth of 46.3% demonstrates continued momentum.

Bull Case : PYPL

The strongest argument for PYPL centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bear Case : COF

The primary concerns for COF are Piotroski F-Score, P/E Ratio, EPS Growth. A P/E of 63.3x leaves little room for execution misses.

Bear Case : PYPL

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

Key Dynamics to Monitor

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

PYPL carries more volatility with a beta of 1.33 — expect wider price swings.

COF is growing revenue faster at 46.3% — sustainability is the question.

COF generates stronger free cash flow (7.9B), providing more financial flexibility.

Bottom Line

COF scores higher overall (75/100 vs 63/100), backed by strong 21.9% margins and 46.3% revenue growth. 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.

Capital One Financial Corporation

FINANCIAL SERVICES · CREDIT SERVICES · USA

Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States.

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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