WallStSmart

PayPal Holdings Inc (PYPL)vsConstellation Brands Inc Class A (STZ)

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Smart Verdict

WallStSmart Research — data-driven comparison

PayPal Holdings Inc generates 254% more annual revenue ($33.17B vs $9.38B). PYPL leads profitability with a 15.8% profit margin vs 11.8%. 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

STZ

Hold

50

out of 100

Grade: D+

Growth: 2.7Profit: 7.5Value: 4.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.61
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
STZSignificantly Overvalued (-276.7%)

Margin of Safety

-276.7%

Fair Value

$43.32

Current Price

$151.56

$108.24 premium

UndervaluedFair: $43.32Overvalued

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

STZ1 strengths · Avg: 10.0/10
Operating MarginProfitability
33.9%10/10

Strong operational efficiency at 33.9%

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

STZ4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.614/10

Distress zone — elevated risk

Debt/EquityHealth
1.383/10

Elevated debt levels

PEG RatioValuation
5.462/10

Expensive relative to growth rate

Revenue GrowthGrowth
-9.8%2/10

Revenue declined 9.8%

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 : STZ

The strongest argument for STZ centers on Operating Margin.

Bear Case : PYPL

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

Bear Case : STZ

The primary concerns for STZ are Altman Z-Score, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

PYPL profiles as a value stock while STZ is a declining play — different risk/reward profiles.

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

PYPL is growing revenue faster at 3.7% — 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 50/100), backed by strong 15.8% margins. Both earn "Strong Buy" and "Hold" 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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Constellation Brands Inc Class A

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.

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