Capital One Financial Corporation (COF) vs PayPal Holdings, Inc. (PYPL)

Capital One Financial Corporation and PayPal Holdings, Inc. are both Credit Services companies. Capital One Financial Corporation is the larger, with a market value of $122.0B against $45.0B — 2.7× the size. PayPal Holdings, Inc. trades at the lower P/E: 10.3× against 12.4×. Capital One Financial Corporation grew revenue faster over the last twelve months: 37.3% against 5.69%. PayPal Holdings, Inc. has the higher net margin (14.4% vs 13.0%) and the higher return on invested capital (16.9% vs 7.92%). Across the 21 metrics below, PayPal Holdings, Inc. leads on 12 and Capital One Financial Corporation on 9.

Valuation

Metric COF PYPL Credit Services median
P/E 12.39 10.33 9.64
P/S 1.58 1.41 0.87
P/B 1.09 2.44 1.16
Price to free cash flow 4.18 7.31 2.99
EV/EBITDA n/m 7.34 9.58
EV/Sales 1.44 1.48 2.32
Earnings yield 8.07% 9.68% 6.72%
Free cash flow yield 23.91% 13.68% 12.33%

Profitability

Metric COF PYPL Credit Services median
Gross margin 78.81% 40.48% 77.13%
Operating margin 0.00% 17.42% 0.34%
Net margin 12.98% 14.36% 9.25%
Free cash flow margin 37.74% 19.35% 13.03%
Return on equity 9.09% 24.50% 8.49%
Return on assets 1.53% 6.03% 2.29%
Return on invested capital 7.92% 16.92% 4.09%

Growth

Metric COF PYPL Credit Services median
Revenue growth (TTM) 37.26% 5.69% 4.62%
EPS growth (last fiscal year) (65.23%) 35.59% —
Revenue growth, 5-year CAGR 16.96% 9.11% 9.13%
Net income growth, 5-year CAGR (1.69%) 4.49% 0.00%

Health

Metric COF PYPL Credit Services median
Debt to equity 0.39 0.68 0.68
Current ratio 1.02 1.29 1.55
Net debt to EBITDA 0.00 (0.06) 0.13

Dividend

Metric COF PYPL Credit Services median
Dividend yield 1.83% — 3.34%
Payout ratio 0.18 0.00 0.00

Size

Metric COF PYPL Credit Services median
Market cap 121.97b 45.03b 872.19m

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