WallStSmart

PayPal Holdings Inc (PYPL)vsSoFi Technologies Inc. (SOFI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PayPal Holdings Inc generates 826% more annual revenue ($33.17B vs $3.58B). PYPL leads profitability with a 15.8% profit margin vs 13.4%. PYPL appears more attractively valued with a PEG of 0.71. 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

SOFI

Buy

58

out of 100

Grade: C

Growth: 7.3Profit: 7.0Value: 7.3Quality: 7.0
Piotroski: 4/9Altman Z: 0.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PYPLUndervalued (+82.5%)

Margin of Safety

+82.5%

Fair Value

$253.19

Current Price

$44.59

$208.60 discount

UndervaluedFair: $253.19Overvalued
SOFISignificantly Overvalued (-609.1%)

Margin of Safety

-609.1%

Fair Value

$2.65

Current Price

$17.18

$14.53 premium

UndervaluedFair: $2.65Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PYPL6 strengths · Avg: 8.5/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Return on EquityProfitability
25.7%9/10

Every $100 of equity generates 26 in profit

PEG RatioValuation
0.718/10

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

SOFI3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
40.2%10/10

Revenue surging 40.2% year-over-year

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

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

SOFI4 concerns · Avg: 2.3/10
Return on EquityProfitability
5.7%3/10

ROE of 5.7% — below average capital efficiency

P/E RatioValuation
45.2x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-57.0%2/10

Earnings declined 57.0%

Free Cash FlowQuality
$-1.06B2/10

Negative free cash flow — burning cash

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 0.71 suggests the stock is reasonably priced for its growth.

Bull Case : SOFI

The strongest argument for SOFI centers on Revenue Growth, Debt/Equity, Price/Book. Revenue growth of 40.2% demonstrates continued momentum. PEG of 1.36 suggests the stock is reasonably priced for its growth.

Bear Case : PYPL

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

Bear Case : SOFI

The primary concerns for SOFI are Return on Equity, P/E Ratio, EPS Growth. A P/E of 45.2x leaves little room for execution misses.

Key Dynamics to Monitor

PYPL profiles as a value stock while SOFI is a growth play — different risk/reward profiles.

SOFI carries more volatility with a beta of 2.26 — expect wider price swings.

SOFI is growing revenue faster at 40.2% — 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 58/100), 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.

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SoFi Technologies Inc.

FINANCIAL SERVICES · CREDIT SERVICES · USA

SoFi Technologies, Inc. provides digital financial services. The company is headquartered in San Francisco, California.

Visit Website →

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