Head-To-Head Survey: PayPal (NASDAQ:PYPL) versus Grab (NASDAQ:GRAB)

PayPal (NASDAQ:PYPL) and Grab (NASDAQ:GRAB) are both large-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for PayPal and Grab, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PayPal	0	23	12	0	2.34
Grab	0	0	5	0	3.00

PayPal currently has a consensus target price of $70.47, suggesting a potential upside of 5.49%. Grab has a consensus target price of $4.93, suggesting a potential upside of 54.02%. Given Grab’s stronger consensus rating and higher probable upside, analysts plainly believe Grab is more favorable than PayPal.

Earnings & Valuation

This table compares PayPal and Grab’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PayPal	$29.77 billion	2.42	$4.25 billion	$3.84	17.50
Grab	$2.36 billion	5.30	-$434.00 million	($0.10)	-31.90

PayPal has higher revenue and earnings than Grab. Grab is trading at a lower price-to-earnings ratio than PayPal, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

PayPal has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Grab has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Insider and Institutional Ownership

68.3% of PayPal shares are held by institutional investors. Comparatively, 55.5% of Grab shares are held by institutional investors. 0.1% of PayPal shares are held by company insiders. Comparatively, 3.6% of Grab shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares PayPal and Grab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PayPal	14.26%	20.84%	5.39%
Grab	-18.43%	-6.77%	-5.10%

Summary

PayPal beats Grab on 10 of the 14 factors compared between the two stocks.

About PayPal

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.

About Grab

Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. The company is headquartered in Singapore.