Reviewing Ryvyl (NASDAQ:RVYL) & PayPal (NASDAQ:PYPL)

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

Institutional and Insider Ownership

17.4% of Ryvyl shares are owned by institutional investors. Comparatively, 68.3% of PayPal shares are owned by institutional investors. 12.4% of Ryvyl shares are owned by company insiders. Comparatively, 0.6% of PayPal shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Ryvyl has a beta of 2.61, indicating that its stock price is 161% more volatile than the S&P 500. Comparatively, PayPal has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ryvyl	N/A	N/A	-46.12%
PayPal	15.77%	25.42%	6.41%

Analyst Recommendations

This is a summary of current ratings and target prices for Ryvyl and PayPal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ryvyl	1	1	0	0	1.50
PayPal	5	33	7	0	2.04

PayPal has a consensus target price of $56.55, suggesting a potential upside of 12.03%. Given PayPal’s stronger consensus rating and higher probable upside, analysts clearly believe PayPal is more favorable than Ryvyl.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ryvyl	$11.13 million	0.62	-$17.53 million	($36.37)	-0.15
PayPal	$33.17 billion	1.37	$5.23 billion	$5.41	9.33

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

Summary

PayPal beats Ryvyl on 12 of the 14 factors compared between the two stocks.

About Ryvyl

Ryvyl Inc., a technology company, engages in the development, marketing, and sale of blockchain-based payment solutions in North America, Europe, and Asia. The company's blockchain-based systems facilitate, record, and store a volume of tokenized assets representing cash or data on a blockchain-based ledger. Its products include QuickCard Payment System, a physical and virtual payment card processing management system, including software that facilitates on and off ramp e-wallet management; Coyni, a digital token platform, which offers custodial assurance by utilizing its stable coin and blockchain technology in a closed-loop ecosystem; and ChargeSavvy, an end-to-end POS solution comprising software and hardware for the restaurant and hospitality industry. It serves customers in various industries, including foreign exchange, retail, and e-commerce sectors. The company was formerly known as GreenBox POS and changed its name to Ryvyl Inc. in October 2022. Ryvyl Inc. is based in San Diego, California.

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.