Contrasting PayPal (NASDAQ:PYPL) and Paypoint (OTCMKTS:PYPTF)

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

Volatility & Risk

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

Insider and Institutional Ownership

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

Profitability

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

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

Valuation & Earnings

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

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

PayPal has higher revenue and earnings than Paypoint.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Paypoint and PayPal, as provided by MarketBeat.com.

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

PayPal has a consensus target price of $82.94, indicating a potential upside of 23.42%. Given PayPal’s stronger consensus rating and higher possible upside, analysts plainly believe PayPal is more favorable than Paypoint.

Summary

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

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.

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.