PayPal (NASDAQ:PYPL – Get Free Report) and Remitly Global (NASDAQ:RELY – Get Free Report) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.
Volatility and Risk
PayPal has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Remitly Global has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for PayPal and Remitly Global, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PayPal | 6 | 31 | 8 | 0 | 2.04 |
| Remitly Global | 0 | 1 | 10 | 1 | 3.00 |
Earnings & Valuation
This table compares PayPal and Remitly Global”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PayPal | $33.17 billion | 1.26 | $5.23 billion | $5.41 | 8.41 |
| Remitly Global | $1.64 billion | 2.09 | $67.93 million | $0.31 | 52.32 |
PayPal has higher revenue and earnings than Remitly Global. PayPal is trading at a lower price-to-earnings ratio than Remitly Global, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
68.3% of PayPal shares are owned by institutional investors. Comparatively, 74.3% of Remitly Global shares are owned by institutional investors. 0.1% of PayPal shares are owned by insiders. Comparatively, 8.1% of Remitly Global shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares PayPal and Remitly Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PayPal | 15.77% | 25.42% | 6.41% |
| Remitly Global | 4.15% | 8.87% | 5.66% |
Summary
Remitly Global beats PayPal on 8 of the 15 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 Remitly Global
Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.
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