PayPal Holdings Inc (PYPL)vsShopify Inc (SHOP)
PYPL
PayPal Holdings Inc
$45.37
-1.84%
FINANCIAL SERVICES · Cap: $40.82B
SHOP
Shopify Inc
$110.41
-1.19%
TECHNOLOGY · Cap: $136.82B
Smart Verdict
WallStSmart Research — data-driven comparison
PayPal Holdings Inc generates 173% more annual revenue ($33.73B vs $12.37B). PYPL leads profitability with a 15.0% profit margin vs 10.8%. PYPL appears more attractively valued with a PEG of 0.91. PYPL earns a higher WallStSmart Score of 70/100 (B-).
PYPL
Strong Buy70
out of 100
Grade: B-
SHOP
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for PYPL.
Margin of Safety
+26.1%
Fair Value
$158.22
Current Price
$110.41
$47.81 discount
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
Revenue surging 34.3% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Distress zone — elevated risk
Earnings declined 6.2%
Expensive relative to growth rate
Trading at 10.7x book value
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : PYPL
The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.91 suggests the stock is reasonably priced for its growth.
Bull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 34.3% demonstrates continued momentum.
Bear Case : PYPL
The primary concerns for PYPL are Altman Z-Score, EPS Growth.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 103.4x leaves little room for execution misses.
Key Dynamics to Monitor
PYPL profiles as a value stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.64 — expect wider price swings.
SHOP is growing revenue faster at 34.3% — sustainability is the question.
PYPL generates stronger free cash flow (911M), providing more financial flexibility.
Bottom Line
PYPL scores higher overall (70/100 vs 50/100). SHOP offers better value entry with a 26.1% margin of safety. 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 →Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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