Visa vs PayPal

This page provides a neutral comparison of Visa, Inc. and PayPal Holdings, Inc. We examine their distinct business models, analyse their financial performance, and discuss their respective market contexts. This content aims to offer accessible insights into both companies from a stock perspective. Educational content, not financial advice.

This page provides a neutral comparison of Visa, Inc. and PayPal Holdings, Inc. We examine their distinct business models, analyse their financial performance, and discuss their respective market cont...

Comparison Snapshot

Key Financial Metrics

V

Metric

PYPL

$628.15B

Market Cap

$52.96B

19.56%

Potential Profit

34.67%

Buy

Analyst Rating

Hold

Why It's Moving

Visa Stock Steadies Amid Hype for Earnings as Analysts Eye Upside Potential.

Adjusted EPS hit $2.98 in recent quarter, edging past forecasts of $2.97 and highlighting resilient transaction volumes despite policy volatility.
Q1 2026 EPS estimates near $3.14 signal strong double-digit gains, fueled by value-added services, B2B payments modernization, and stablecoin opportunities.
Major institutions maintain Strong Buy ratings, citing Visa's inflation-linked revenue model, hefty buybacks, and edge in agentic commerce over fintech rivals.

Sentiment:

🐃Bullish

PayPal Shares Slide Amid Broader Market Pressure as Investors Await Earnings Catalyst

Stock closed at $56.56 after -1.27% daily loss, worse than broader indices like Nasdaq's -0.1%, highlighting sector-specific headwinds.
Daiwa Securities downgraded to Neutral on Jan 13 with $61 target, reflecting caution on near-term growth amid recent 7% monthly decline.
Earnings preview shows expected EPS of $1.29 (up 8.4% YoY) and $8.81B revenue, potentially signaling resilience despite valuation trading at a discount.

Sentiment:

🐻Bearish

Visa Stock Steadies Amid Hype for Earnings as Analysts Eye Upside Potential.

Adjusted EPS hit $2.98 in recent quarter, edging past forecasts of $2.97 and highlighting resilient transaction volumes despite policy volatility.
Q1 2026 EPS estimates near $3.14 signal strong double-digit gains, fueled by value-added services, B2B payments modernization, and stablecoin opportunities.
Major institutions maintain Strong Buy ratings, citing Visa's inflation-linked revenue model, hefty buybacks, and edge in agentic commerce over fintech rivals.

Sentiment:

🐃Bullish

PayPal Shares Slide Amid Broader Market Pressure as Investors Await Earnings Catalyst

Stock closed at $56.56 after -1.27% daily loss, worse than broader indices like Nasdaq's -0.1%, highlighting sector-specific headwinds.
Daiwa Securities downgraded to Neutral on Jan 13 with $61 target, reflecting caution on near-term growth amid recent 7% monthly decline.
Earnings preview shows expected EPS of $1.29 (up 8.4% YoY) and $8.81B revenue, potentially signaling resilience despite valuation trading at a discount.

Sentiment:

🐻Bearish

Investment Analysis

Visa

V

Pros

Visa demonstrates predictable earnings growth through expanding value-added services nearing 30% of revenues.
Strong cash generation supports long-term relevance in global commerce and digital payments.
Cross-border travel normalisation and payments digitisation drive gradual revenue acceleration.

Considerations

Elevated forward P/E of 26.67X exceeds industry average, indicating premium valuation.
Regulatory overhangs temper near-term upside potential despite defensive growth appeal.
Recent three-month share performance trails S&P 500 amid broader market gains.

PayPal

PYPL

Pros

Attractive forward P/E of 10.24X offers compelling value relative to fintech peers.
Buy-now-pay-later volumes grow over 20% quarterly, targeting nearly $40 billion in 2025.
Venmo monetisation and AI-powered agentic commerce initiatives position for earnings reacceleration.

Considerations

Share price down 33% over past 12 months, underperforming Visa and broader market.
Increased 2026 investments in BNPL and commerce pressure near-term operating margins.
Venmo profitability lags legacy PayPal, with monetisation opportunities carrying execution risk.

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