WallStSmart

PayPal Holdings Inc (PYPL)vsRaytheon Technologies Corp (RTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Raytheon Technologies Corp generates 167% more annual revenue ($88.60B vs $33.17B). PYPL leads profitability with a 15.8% profit margin vs 7.6%. PYPL appears more attractively valued with a PEG of 0.69. PYPL earns a higher WallStSmart Score of 78/100 (B+).

PYPL

Strong Buy

78

out of 100

Grade: B+

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

RTX

Buy

55

out of 100

Grade: C-

Growth: 6.0Profit: 5.5Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 1.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PYPLUndervalued (+82.3%)

Margin of Safety

+82.3%

Fair Value

$253.19

Current Price

$44.85

$208.34 discount

UndervaluedFair: $253.19Overvalued
RTXSignificantly Overvalued (-95.4%)

Margin of Safety

-95.4%

Fair Value

$99.80

Current Price

$195.00

$95.20 premium

UndervaluedFair: $99.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

RTX2 strengths · Avg: 9.0/10
Market CapQuality
$261.12B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$3.19B8/10

Generating 3.2B in free cash flow

Areas to Watch

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

RTX4 concerns · Avg: 3.3/10
P/E RatioValuation
39.0x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

PEG RatioValuation
2.782/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : RTX

The strongest argument for RTX centers on Market Cap, Free Cash Flow. Revenue growth of 12.1% demonstrates continued momentum.

Bear Case : PYPL

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

Bear Case : RTX

The primary concerns for RTX are P/E Ratio, Altman Z-Score, Profit Margin.

Key Dynamics to Monitor

PYPL carries more volatility with a beta of 1.46 — expect wider price swings.

RTX is growing revenue faster at 12.1% — sustainability is the question.

RTX generates stronger free cash flow (3.2B), providing more financial flexibility.

Monitor CREDIT SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PYPL scores higher overall (78/100 vs 55/100), 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.

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.

Visit Website →

Raytheon Technologies Corp

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.

Visit Website →

Want to dig deeper into these stocks?