Contrasting Freightos (NASDAQ:CRGO) and PayPal (NASDAQ:PYPL)

Freightos (NASDAQ:CRGO) and PayPal (NASDAQ:PYPL) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freightos	$29.46 million	3.02	-$17.52 million	($0.35)	-4.94
PayPal	$33.17 billion	1.26	$5.23 billion	$5.41	8.38

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freightos	-59.46%	-37.28%	-25.50%
PayPal	15.77%	25.42%	6.41%

Institutional and Insider Ownership

22.7% of Freightos shares are held by institutional investors. Comparatively, 68.3% of PayPal shares are held by institutional investors. 19.6% of Freightos shares are held by company insiders. Comparatively, 0.1% of PayPal shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Freightos has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, PayPal has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Freightos and PayPal, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freightos	1	0	1	0	2.00
PayPal	6	31	8	0	2.04

Freightos currently has a consensus target price of $3.00, suggesting a potential upside of 73.41%. PayPal has a consensus target price of $58.11, suggesting a potential upside of 28.15%. Given Freightos’ higher possible upside, equities research analysts clearly believe Freightos is more favorable than PayPal.

Summary

PayPal beats Freightos on 11 of the 14 factors compared between the two stocks.

About Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.

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.