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Mastercard Incorporated (MA) vs PayPal Holdings, Inc. (PYPL)

Mastercard Incorporated and PayPal Holdings, Inc. are both Credit Services companies. Mastercard Incorporated is the larger, with a market value of $568.5B against $48.4B — 11.7× the size. PayPal Holdings, Inc. trades at the lower P/E: 11.2× against 34.5×. Mastercard Incorporated grew revenue faster over the last twelve months: 15.3% against 4.36%. Mastercard Incorporated has the higher net margin (46.7% vs 13.8%) and the higher return on invested capital (67.6% vs 16.1%). Both pay a dividend; PayPal Holdings, Inc. yields more (0.94% vs 0.53%). Across the 21 metrics below, PayPal Holdings, Inc. leads on 11 and Mastercard Incorporated on 10.

Valuation

Metric MA PYPL Credit Services median
P/E 34.50 11.22 8.59
P/S 15.93 1.47 0.97
P/B 85.76 2.58 1.20
Price to free cash flow 37.46 7.96 2.41
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 2.90% 8.91% 8.70%
Free cash flow yield 2.67% 12.56% 12.56%

Profitability

Metric MA PYPL Credit Services median
Gross margin 100.00% 40.55% 77.36%
Operating margin 58.60% 16.99% 1.73%
Net margin 46.73% 13.78% 8.35%
Free cash flow margin 42.52% 18.43% 16.27%
Return on equity 231.37% 23.83% 9.11%
Return on assets 30.43% 5.86% 1.94%
Return on invested capital 67.64% 16.06% 4.90%

Growth

Metric MA PYPL Credit Services median
Revenue growth (TTM) 15.30% 4.36% 4.49%
EPS growth (last fiscal year) 18.93% 35.59% 21.94%
Revenue growth, 5-year CAGR 16.47% 9.11% 9.59%
Net income growth, 5-year CAGR 18.48% 4.49% 0.00%

Health

Metric MA PYPL Credit Services median
Debt to equity 3.55 0.69 0.69
Current ratio 1.01 1.26 1.58
Net debt to EBITDA 0.34 (0.06) 0.11

Dividend

Metric MA PYPL Credit Services median
Dividend yield 0.53% 0.94% 1.71%
Payout ratio 0.18 0.11 0.23

Size

Metric MA PYPL Credit Services median
Market cap 568.53b 48.43b 627.84m

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