WallStSmart

PayPal Holdings Inc (PYPL)vsWarner Bros Discovery Inc (WBD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 11% more annual revenue ($37.30B vs $33.73B). PYPL leads profitability with a 15.0% profit margin vs 1.9%. PYPL appears more attractively valued with a PEG of 0.91. PYPL earns a higher WallStSmart Score of 70/100 (B-).

PYPL

Strong Buy

70

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 7.7Quality: 6.5
Piotroski: 6/9Altman Z: 1.66

WBD

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 4.5Value: 5.7Quality: 4.3
Piotroski: 4/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for PYPL.

WBDUndervalued (+60.5%)

Margin of Safety

+60.5%

Fair Value

$70.90

Current Price

$27.11

$43.79 discount

UndervaluedFair: $70.90Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PYPL4 strengths · Avg: 8.8/10
P/E RatioValuation
8.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
25.1%9/10

Every $100 of equity generates 25 in profit

PEG RatioValuation
0.918/10

Growing faster than its price suggests

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

WBD3 strengths · Avg: 9.0/10
EPS GrowthGrowth
226.7%10/10

Earnings expanding 226.7% YoY

Market CapQuality
$67.99B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

PYPL2 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

EPS GrowthGrowth
-6.2%2/10

Earnings declined 6.2%

WBD4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.1%3/10

ROE of 2.1% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

PEG RatioValuation
216.922/10

Expensive relative to growth rate

Revenue GrowthGrowth
-5.7%2/10

Revenue declined 5.7%

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 : WBD

The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.

Bear Case : PYPL

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

Bear Case : WBD

The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

WBD carries more volatility with a beta of 1.57 — expect wider price swings.

PYPL is growing revenue faster at 7.2% — sustainability is the question.

PYPL generates stronger free cash flow (911M), providing more financial flexibility.

Monitor CREDIT SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PYPL scores higher overall (70/100 vs 51/100). WBD offers better value entry with a 60.5% 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 →

Warner Bros Discovery Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Warner Bros. The company is headquartered in New York, New York.

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