WallStSmart

PayPal Holdings Inc (PYPL)vsSLM Corp (SLM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PayPal Holdings Inc generates 1924% more annual revenue ($34.13B vs $1.69B). SLM leads profitability with a 43.6% profit margin vs 14.4%. SLM appears more attractively valued with a PEG of 0.58. SLM earns a higher WallStSmart Score of 70/100 (B-).

PYPL

Buy

65

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 7.7Quality: 6.0
Piotroski: 6/9Altman Z: 1.66

SLM

Strong Buy

70

out of 100

Grade: B-

Growth: 4.7Profit: 8.5Value: 7.7Quality: 4.0
Piotroski: 6/9Altman Z: -0.14

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PYPL5 strengths · Avg: 8.6/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Return on EquityProfitability
24.7%9/10

Every $100 of equity generates 25 in profit

PEG RatioValuation
0.918/10

Growing faster than its price suggests

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.77B8/10

Generating 1.8B in free cash flow

SLM6 strengths · Avg: 9.0/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.7%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
43.6%10/10

Keeps 44 of every $100 in revenue as profit

PEG RatioValuation
0.588/10

Growing faster than its price suggests

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Areas to Watch

PYPL3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

SLM4 concerns · Avg: 1.8/10
EPS GrowthGrowth
-9.4%2/10

Earnings declined 9.4%

Free Cash FlowQuality
$-134.83M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.142/10

Distress zone — elevated risk

Debt/EquityHealth
2.361/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 : SLM

The strongest argument for SLM centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 43.6% and operating margin at 29.2%. PEG of 0.58 suggests the stock is reasonably priced for its growth.

Bear Case : PYPL

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

Bear Case : SLM

The primary concerns for SLM are EPS Growth, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.36 is elevated, increasing financial risk.

Key Dynamics to Monitor

PYPL profiles as a value stock while SLM is a mature play — different risk/reward profiles.

PYPL carries more volatility with a beta of 1.29 — expect wider price swings.

SLM is growing revenue faster at 8.1% — sustainability is the question.

PYPL generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

SLM scores higher overall (70/100 vs 65/100), backed by strong 43.6% 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 →

SLM Corp

FINANCIAL SERVICES · CREDIT SERVICES · USA

SLM Corporation originates and provides private education loan services to students and their families to finance the cost of their education in the United States. The company is headquartered in Newark, Delaware.

Want to dig deeper into these stocks?