FlexShopper vs PayPal Which Is a Smarter Choice?

FlexShopper and PayPal are two popular companies in the financial technology sector, each offering unique services to consumers and investors alike. FlexShopper specializes in lease-to-own purchasing options, allowing customers to make affordable payments on a wide range of products. On the other hand, PayPal is a major player in the online payment processing industry, facilitating transactions for millions of users worldwide. Both companies have shown impressive growth and profitability in recent years, making them attractive options for investors looking to capitalize on the digital economy.

FlexShopper or PayPal?

When comparing FlexShopper 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 FlexShopper 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. FlexShopper 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. FlexShopper 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 FlexShopper P/E ratio at 46.84 and PayPal's P/E ratio at 20.35. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. FlexShopper P/B ratio is 1.42 while PayPal's P/B ratio is 4.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, FlexShopper has seen a 5-year revenue growth of -0.27%, while PayPal's is 1.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with FlexShopper's ROE at 3.12% and PayPal's ROE at 21.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.92 for FlexShopper and $88.38 for PayPal. Over the past year, FlexShopper's prices ranged from $0.97 to $2.19, with a yearly change of 125.77%. PayPal's prices fluctuated between $55.77 and $93.66, with a yearly change of 67.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.