Will Paypal Holdings (NASDAQ:PYPL) stakeholders shift to International (NYSE:IBM)?

PYPL Stock

USD 81.83 1.02 1.26%

Macroaxis Story

International Business would recover faster from the new pull down as its shares price went up 1.72% to Paypal Holdings's 3.65%While some baby boomers are getting worried about financial services space, we are going to summarize both, Paypal Holdings and International Business as potential medium-term investments. We are going to summarize some of the competitive aspects of both Paypal and International.

Published over two months ago

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By analyzing existing basic indicators between Paypal Holdings and International, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in International with a short position in Paypal Holdings. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Paypal Holdings has an asset utilization ratio of 89.4 percent. This denotes that the company is making $0.89 for each dollar of assets. An increasing asset utilization means that Paypal Holdings is more efficient with each dollar of assets it utilizes for everyday operations.

Will Paypal Holdings (NASDAQ:PYPL) stakeholders shift to International (NYSE:IBM)?

How important is PayPal Holdings's Liquidity

PayPal Holdings financial leverage refers to using borrowed capital as a funding source to finance PayPal Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. PayPal Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between PayPal Holdings's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for PayPal Holdings, but it might be worth checking our own buy vs. sell analysis

Going after PayPal Financials

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me take a closer look at Paypal Holdings revenue. Based on the latest financial disclosure, Paypal Holdings reported 25.82 B of revenue. This is 130.33% higher than that of the Financial Services sector and significantly higher than that of the Credit Services industry. The revenue for all United States stocks is 173.67% lower than that of Paypal Holdings. As for International Business we see revenue of 59.68 B, which is much higher than that of the Credit Services

	Paypal	25.82 Billion
	Sector	5.65 Billion
	International	59.68 Billion

25.8 B

Paypal

Sector

59.7 B

International

Our perspective of the new Paypal Holdings pull down

The standard deviation is down to 2.72 as of today.

As of the 3rd of November, Paypal Holdings holds the risk adjusted performance of (0.16), and Coefficient Of Variation of (809.71). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Paypal Holdings, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Paypal Holdings, which can be compared to its competitors. Please check Paypal Holdings coefficient of variation, as well as the relationship between the treynor ratio and semi variance to decide if Paypal Holdings is priced some-what accurately, providing market reflects its current price of 76.55 per share. Given that Paypal Holdings has jensen alpha of (0.30), we recommend you to check out Paypal Holdings's recent market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Paypal Holdings Investment

While many other companies in the credit services industry are either recovering or due for a correction, Paypal Holdings may not be performing as strong as the other in terms of long-term growth potentials. While some stakeholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Paypal Holdings.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of PayPal Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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