PayPal Holdings Inc (PYPL)vsSynchrony Financial (SYF)
PYPL
PayPal Holdings Inc
$44.59
-0.90%
FINANCIAL SERVICES · Cap: $42.50B
SYF
Synchrony Financial
$65.17
+0.03%
FINANCIAL SERVICES · Cap: $23.06B
Smart Verdict
WallStSmart Research — data-driven comparison
PayPal Holdings Inc generates 240% more annual revenue ($33.17B vs $9.76B). SYF leads profitability with a 36.4% profit margin vs 15.8%. PYPL appears more attractively valued with a PEG of 0.71. PYPL earns a higher WallStSmart Score of 78/100 (B+).
PYPL
Strong Buy78
out of 100
Grade: B+
SYF
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.5%
Fair Value
$253.19
Current Price
$44.59
$208.60 discount
Margin of Safety
+59.2%
Fair Value
$178.92
Current Price
$65.17
$113.75 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 26 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 39.4% YoY
Generating 2.2B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 48.5%
Every $100 of equity generates 21 in profit
Generating 2.5B in free cash flow
Areas to Watch
3.7% revenue growth
Distress zone — elevated risk
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : SYF
The strongest argument for SYF centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 36.4% and operating margin at 48.5%.
Bear Case : PYPL
The primary concerns for PYPL are Revenue Growth, Altman Z-Score.
Bear Case : SYF
The primary concerns for SYF are PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
PYPL carries more volatility with a beta of 1.46 — expect wider price swings.
SYF is growing revenue faster at 5.0% — sustainability is the question.
SYF generates stronger free cash flow (2.5B), providing more financial flexibility.
Monitor CREDIT SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PYPL scores higher overall (78/100 vs 71/100), backed by strong 15.8% margins. SYF offers better value entry with a 59.2% margin of safety. 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 →Synchrony Financial
FINANCIAL SERVICES · CREDIT SERVICES · USA
Synchrony Financial is a consumer financial services company headquartered in Stamford, Connecticut, United States. The company offers consumer financing products, including credit, promotional financing and loyalty programs, installment lending to industries, and FDIC-insured consumer savings products through Synchrony Bank, its wholly owned online bank subsidiary.
Visit Website →Compare with Other CREDIT SERVICES Stocks
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