WallStSmart

Nelnet Inc (NNI)vsPayPal Holdings Inc (PYPL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PayPal Holdings Inc generates 1949% more annual revenue ($33.73B vs $1.65B). NNI leads profitability with a 25.3% profit margin vs 15.0%. NNI appears more attractively valued with a PEG of 0.46. PYPL earns a higher WallStSmart Score of 72/100 (B).

NNI

Buy

60

out of 100

Grade: C+

Growth: 3.3Profit: 7.0Value: 8.3Quality: 4.8
Piotroski: 7/9Altman Z: 1.13

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

NNI5 strengths · Avg: 9.4/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
25.3%9/10

Keeps 25 of every $100 in revenue as profit

Operating MarginProfitability
21.4%8/10

Strong operational efficiency at 21.4%

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

NNI4 concerns · Avg: 1.8/10
Revenue GrowthGrowth
-7.1%2/10

Revenue declined 7.1%

EPS GrowthGrowth
-12.9%2/10

Earnings declined 12.9%

Altman Z-ScoreHealth
1.132/10

Distress zone — elevated risk

Debt/EquityHealth
2.061/10

Elevated debt levels

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 : NNI

The strongest argument for NNI centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 25.3% and operating margin at 21.4%. PEG of 0.46 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. PEG of 0.75 suggests the stock is reasonably priced for its growth.

Bear Case : NNI

The primary concerns for NNI are Revenue Growth, EPS Growth, Altman Z-Score. Debt-to-equity of 2.06 is elevated, increasing financial risk.

Bear Case : PYPL

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

Key Dynamics to Monitor

NNI profiles as a declining 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.

PYPL is growing revenue faster at 7.2% — sustainability is the question.

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

Bottom Line

PYPL scores higher overall (72/100 vs 60/100). 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.

Nelnet Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Nelnet, Inc. is engaged in the loan management, communications and educational technology, services and payment processing businesses globally. The company is headquartered in Lincoln, Nebraska.

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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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