Critical Survey: PayPal (NASDAQ:PYPL) and Paypoint (OTCMKTS:PYPTF)

PayPal (NASDAQ:PYPL) and Paypoint (OTCMKTS:PYPTF) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Valuation and Earnings

This table compares PayPal and Paypoint”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PayPal	$32.86 billion	1.91	$4.15 billion	$4.99	13.47
Paypoint	$391.23 million	2.57	$24.49 million	N/A	N/A

PayPal has higher revenue and earnings than Paypoint.

Volatility & Risk

PayPal has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Paypoint has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Institutional and Insider Ownership

68.3% of PayPal shares are held by institutional investors. 0.1% of PayPal shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for PayPal and Paypoint, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PayPal	4	17	15	0	2.31
Paypoint	0	0	0	0	0.00

PayPal presently has a consensus target price of $82.94, suggesting a potential upside of 23.42%. Given PayPal’s stronger consensus rating and higher probable upside, equities analysts clearly believe PayPal is more favorable than Paypoint.

Profitability

This table compares PayPal and Paypoint’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PayPal	14.96%	25.64%	6.45%
Paypoint	N/A	N/A	N/A

Summary

PayPal beats Paypoint on 11 of the 12 factors compared between the two stocks.

About PayPal

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.

About Paypoint

PayPoint plc engages in the provision of payments and banking, shopping, and e-commerce services and products in the United Kingdom. The company operates through two segments: PayPoint and Love2shop. The PayPoint segment provides card payment services to retailers, including leased payment devices; EPoS; ATM cash machines; SIM cards sales; receipt advertising; bill payment services and cash top-ups to individual consumers; parcel delivery and collection services; retailer service fees solutions; and digital payment services, as well as cash through to digital services. The segment offers its products under PayPoint One, eMoney, MultiPay, CashOut, and Direct Debits platforms. The Love2shop segment is involved in the provision of shopping vouchers, cards, and e-codes which customers may redeem with participating retailers; and Christmas savings club, to which customers make regular payments throughout the year to help spread the cost of Christmas, before converting to a voucher. It serves consumers, SMEs, and convenience retailers in the commercial, not-for-profit, and public sectors. The company was founded in 1996 and is headquartered in Welwyn Garden City, the United Kingdom.