Bill.com vs PayPal Which Is a Smarter Choice?

Bill.com and PayPal are both prominent players in the financial technology sector, offering solutions for businesses and individuals to manage their finances. Bill.com focuses on providing automated bill payment services to streamline accounting processes for small and medium-sized businesses. On the other hand, PayPal is known for its robust payment processing platform that enables secure online transactions. Both companies have experienced significant growth in recent years, but their approaches and target markets differ. This article will compare the stock performance of Bill.com and PayPal to provide insights for potential investors.

Bill.com or PayPal?

When comparing Bill.com and PayPal, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Bill.com and PayPal.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Bill.com has a dividend yield of -%, while PayPal has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bill.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, PayPal reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Bill.com P/E ratio at 1303.80 and PayPal's P/E ratio at 20.60. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bill.com P/B ratio is 2.56 while PayPal's P/B ratio is 4.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bill.com has seen a 5-year revenue growth of 11.69%, while PayPal's is 1.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bill.com's ROE at 0.20% and PayPal's ROE at 21.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $94.90 for Bill.com and $88.55 for PayPal. Over the past year, Bill.com's prices ranged from $43.11 to $97.86, with a yearly change of 127.00%. PayPal's prices fluctuated between $55.77 and $90.27, with a yearly change of 61.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.