Ideal vs PayPal Which Performs Better?

Both Ideal and PayPal are well-known financial services companies that have become popular among investors. Ideal is a Dutch online payment system that has seen steady growth in recent years, offering secure and efficient transactions for businesses and consumers alike. PayPal, on the other hand, is a global leader in online payment processing, with a strong presence in e-commerce and digital payments. Both companies have their strengths and weaknesses, making them attractive options for investors looking to diversify their portfolios.

Ideal or PayPal?

When comparing Ideal 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 Ideal 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. Ideal has a dividend yield of 3.33%, while PayPal has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ideal 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 Ideal P/E ratio at 12.03 and PayPal's P/E ratio at 20.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ideal P/B ratio is 1.92 while PayPal's P/B ratio is 4.58.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ideal has seen a 5-year revenue growth of 1.70%, while PayPal's is 1.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ideal's ROE at 16.19% and PayPal's ROE at 21.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €5.97 for Ideal and $89.82 for PayPal. Over the past year, Ideal's prices ranged from €5.16 to €6.78, with a yearly change of 31.40%. 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.