WallStSmart

PayPay Corporation American Depository Shares (PAYP)vsSony Group Corp (SONY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Sony Group Corp generates 3061% more annual revenue ($12.70T vs $401.59B). PAYP leads profitability with a 30.6% profit margin vs -1.8%. SONY appears more attractively valued with a PEG of 1.71. PAYP earns a higher WallStSmart Score of 78/100 (B+).

PAYP

Strong Buy

78

out of 100

Grade: B+

Growth: 9.3Profit: 8.5Value: 5.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.84

SONY

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 4.5Value: 5.0Quality: 7.5
Piotroski: 6/9Altman Z: 2.37

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PAYP6 strengths · Avg: 8.8/10
Profit MarginProfitability
30.6%10/10

Keeps 31 of every $100 in revenue as profit

EPS GrowthGrowth
62.2%10/10

Earnings expanding 62.2% YoY

Return on EquityProfitability
29.8%9/10

Every $100 of equity generates 30 in profit

P/E RatioValuation
12.6x8/10

Attractively priced relative to earnings

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Revenue GrowthGrowth
27.0%8/10

Revenue surging 27.0% year-over-year

SONY5 strengths · Avg: 8.8/10
Free Cash FlowQuality
$102.58B10/10

Generating 102.6B in free cash flow

Market CapQuality
$149.73B9/10

Large-cap with strong market position

Debt/EquityHealth
0.229/10

Conservative balance sheet, low leverage

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

EPS GrowthGrowth
47.6%8/10

Earnings expanding 47.6% YoY

Areas to Watch

PAYP4 concerns · Avg: 2.8/10
PEG RatioValuation
1.784/10

Expensive relative to growth rate

Debt/EquityHealth
1.853/10

Elevated debt levels

Free Cash FlowQuality
$-60.13B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.842/10

Distress zone — elevated risk

SONY3 concerns · Avg: 2.3/10
PEG RatioValuation
1.714/10

Expensive relative to growth rate

Return on EquityProfitability
-2.6%2/10

ROE of -2.6% — below average capital efficiency

Profit MarginProfitability
-1.8%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : PAYP

The strongest argument for PAYP centers on Profit Margin, EPS Growth, Return on Equity. Profitability is solid with margins at 30.6% and operating margin at 27.4%. Revenue growth of 27.0% demonstrates continued momentum.

Bull Case : SONY

The strongest argument for SONY centers on Free Cash Flow, Market Cap, Debt/Equity.

Bear Case : PAYP

The primary concerns for PAYP are PEG Ratio, Debt/Equity, Free Cash Flow. Debt-to-equity of 1.85 is elevated, increasing financial risk.

Bear Case : SONY

The primary concerns for SONY are PEG Ratio, Return on Equity, Profit Margin.

Key Dynamics to Monitor

PAYP profiles as a growth stock while SONY is a turnaround play — different risk/reward profiles.

PAYP is growing revenue faster at 27.0% — sustainability is the question.

SONY generates stronger free cash flow (102.6B), providing more financial flexibility.

Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PAYP scores higher overall (78/100 vs 59/100), backed by strong 30.6% margins and 27.0% 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.

PayPay Corporation American Depository Shares

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

PayPay Corporation, a financial technology company, provides a digital finance platform with services that inlclude easy-to-use payments and other financial services in Japan. The company is headquartered in Shinjuku, Japan.

Sony Group Corp

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Sony Group Corporation designs, develops, produces and sells electronic equipment, instruments and devices for the consumer, professional and industrial markets worldwide. The company is headquartered in Tokyo, Japan.

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