Bread Financial vs PayPal Which Is More Reliable?

Bread Financial and PayPal are two leading companies in the financial technology sector. Bread Financial offers innovative solutions for online shopping and payments, while PayPal is a global leader in digital payments and money transfers. Both companies have experienced significant growth in recent years, with their stocks attracting the attention of investors. This comparison will explore the performance, market position, and potential for growth of Bread Financial and PayPal stocks in the ever-evolving fintech industry.

Bread Financial or PayPal?

When comparing Bread Financial 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 Bread Financial 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. Bread Financial has a dividend yield of 1.79%, while PayPal has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bread Financial reports a 5-year dividend growth of -18.10% year and a payout ratio of 13.46%. 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 Bread Financial P/E ratio at 9.34 and PayPal's P/E ratio at 19.80. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bread Financial P/B ratio is 0.94 while PayPal's P/B ratio is 4.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bread Financial has seen a 5-year revenue growth of -0.16%, while PayPal's is 1.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bread Financial's ROE at 10.20% and PayPal's ROE at 21.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.33 for Bread Financial and $85.67 for PayPal. Over the past year, Bread Financial's prices ranged from $26.27 to $63.01, with a yearly change of 139.86%. PayPal's prices fluctuated between $55.27 and $87.91, with a yearly change of 59.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.