PayPal (NASDAQ:PYPL – Get Free Report) and Joint Stock Company Kaspi.kz (NASDAQ:KSPI – Get Free Report) are both large-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Insider and Institutional Ownership
68.3% of PayPal shares are held by institutional investors. Comparatively, 32.2% of Joint Stock Company Kaspi.kz shares are held by institutional investors. 0.1% of PayPal shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares PayPal and Joint Stock Company Kaspi.kz’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PayPal | 14.96% | 25.64% | 6.45% |
| Joint Stock Company Kaspi.kz | 30.35% | 55.31% | 11.20% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PayPal | $32.86 billion | 1.66 | $4.15 billion | $4.99 | 11.65 |
| Joint Stock Company Kaspi.kz | $4.82 billion | 3.21 | $2.18 billion | $11.09 | 6.99 |
PayPal has higher revenue and earnings than Joint Stock Company Kaspi.kz. Joint Stock Company Kaspi.kz is trading at a lower price-to-earnings ratio than PayPal, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for PayPal and Joint Stock Company Kaspi.kz, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PayPal | 4 | 22 | 14 | 0 | 2.25 |
| Joint Stock Company Kaspi.kz | 2 | 1 | 2 | 0 | 2.00 |
PayPal currently has a consensus target price of $78.29, suggesting a potential upside of 34.65%. Joint Stock Company Kaspi.kz has a consensus target price of $111.00, suggesting a potential upside of 43.15%. Given Joint Stock Company Kaspi.kz’s higher probable upside, analysts clearly believe Joint Stock Company Kaspi.kz is more favorable than PayPal.
Volatility & Risk
PayPal has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Joint Stock Company Kaspi.kz has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Summary
PayPal beats Joint Stock Company Kaspi.kz on 8 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 Joint Stock Company Kaspi.kz
Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform. The Payments Platform segment facilities transactions between customers and merchants. This segment offers shopping transactions, regular household bills, and peer to peer payments for consumers; accepts payment online and in store, issue and settle invoices, pay suppliers and monitor merchant turnover. It also provides proprietary data facilities informed decision making across multiple areas of business. Its Marketplace Platform segment connects online, and offline merchants and consumers enabling merchants to enhance its sales through an omni channel strategy and enable consumers to buy products and services from various merchants. This segment also operates marketplace through m-commerce, a mobile solution for shopping in person which consumers can use e-commerce to shop anywhere, anytime with free delivery; Kaspi Travel allows consumers to book domestic and international flights and package holidays, domestic rail tickets. It also enhances merchants sales by connecting payments and fintech products, Kapsi advertising, and other delivery services. The Fintech Platform segment provides consumers with BNPL, finance, and savings products and merchants with merchant finance services through super apps and Kapsi.kz Super app. It also involved in the banking; distressed asset management; real estate business; payment processing; online travel; and storage and processing of information services. The company was incorporated in 2008 and is headquartered in Almaty, the Republic of Kazakhstan.
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