PayPal vs Walmart Which Is More Reliable?

PayPal and Walmart are both widely known companies with strong presences in the market. PayPal, a leading digital payment platform, has seen steady growth in recent years due to the increasing popularity of online shopping and the shift towards a cashless society. On the other hand, Walmart, a retail giant, continues to dominate the physical retail sector with its extensive network of stores and diverse product offerings. Investors looking to diversify their portfolio may consider comparing the performance of these two stocks to make informed investment decisions.

PayPal or Walmart?

When comparing PayPal and Walmart, 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 PayPal and Walmart.

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. PayPal has a dividend yield of -%, while Walmart has a dividend yield of 0.88%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PayPal reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 33.23%.

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 PayPal P/E ratio at 20.86 and Walmart's P/E ratio at 38.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PayPal P/B ratio is 4.58 while Walmart's P/B ratio is 8.60.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PayPal has seen a 5-year revenue growth of 1.07%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PayPal's ROE at 21.46% and Walmart's ROE at 23.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $89.82 for PayPal and $93.04 for Walmart. Over the past year, PayPal's prices ranged from $55.77 to $93.66, with a yearly change of 67.94%. Walmart's prices fluctuated between $50.51 and $96.18, with a yearly change of 90.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.