PayPal Holdings Inc (PYPL)vsRoyal Bank of Canada (RY)
PYPL
PayPal Holdings Inc
$42.34
-0.40%
FINANCIAL SERVICES · Cap: $36.63B
RY
Royal Bank of Canada
$194.04
-0.48%
FINANCIAL SERVICES · Cap: $277.29B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 95% more annual revenue ($65.72B vs $33.73B). RY leads profitability with a 33.7% profit margin vs 15.0%. PYPL appears more attractively valued with a PEG of 0.75. PYPL earns a higher WallStSmart Score of 72/100 (B).
PYPL
Strong Buy72
out of 100
Grade: B
RY
Strong Buy70
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 25 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Generating 20.8B in free cash flow
Reasonable price relative to book value
16.1% revenue growth
Areas to Watch
Distress zone — elevated risk
Earnings declined 6.2%
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.
Bear Case : PYPL
The primary concerns for PYPL are Altman Z-Score, EPS Growth.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.77 is elevated, increasing financial risk.
Key Dynamics to Monitor
PYPL profiles as a value stock while RY is a growth play — different risk/reward profiles.
PYPL carries more volatility with a beta of 1.34 — expect wider price swings.
RY is growing revenue faster at 16.1% — sustainability is the question.
RY generates stronger free cash flow (20.8B), providing more financial flexibility.
Bottom Line
PYPL scores higher overall (72/100 vs 70/100). Both earn "Strong Buy" and "Strong 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 →Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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