WallStSmart

PRA Group Inc (PRAA)vsPayPal Holdings Inc (PYPL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PayPal Holdings Inc generates 2660% more annual revenue ($33.17B vs $1.20B). PYPL leads profitability with a 15.8% profit margin vs -25.4%. PYPL appears more attractively valued with a PEG of 0.69. PYPL earns a higher WallStSmart Score of 78/100 (B+).

PRAA

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 5.0Value: 4.0Quality: 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

Intrinsic value data unavailable for PRAA.

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

PRAA2 strengths · Avg: 10.0/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
38.1%10/10

Strong operational efficiency at 38.1%

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

PRAA4 concerns · Avg: 2.8/10
EPS GrowthGrowth
2.1%4/10

2.1% earnings growth

Market CapQuality
$694.87M3/10

Smaller company, higher risk/reward

PEG RatioValuation
5.882/10

Expensive relative to growth rate

Return on EquityProfitability
-26.0%2/10

ROE of -26.0% — below average capital efficiency

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 : PRAA

The strongest argument for PRAA centers on Price/Book, Operating Margin. Revenue growth of 13.7% 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 : PRAA

The primary concerns for PRAA are EPS Growth, Market Cap, PEG Ratio.

Bear Case : PYPL

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

Key Dynamics to Monitor

PRAA profiles as a turnaround 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.

PRAA is growing revenue faster at 13.7% — sustainability is the question.

PYPL generates stronger free cash flow (2.2B), providing more financial flexibility.

Bottom Line

PYPL scores higher overall (78/100 vs 64/100), backed by strong 15.8% margins. 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.

PRA Group Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

PRA Group, Inc., a service company, is engaged in the purchase, collection and management of delinquent loan portfolios in the Americas, Australia and Europe. The company is headquartered in Norfolk, Virginia.

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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