AMZN vs PYPL: Which Is the Better Buy?
Side-by-side comparison of Amazon.com, Inc. and PayPal Holdings, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-18.
Amazon.com, Inc. · Consumer Cyclical
$251.19
+18.5% upside to fair value
Med Conviction
Grade B
High Quality
VS
PayPal Holdings, Inc. · Financial Services
$52.71
+9.1% upside to fair value
Med Conviction
Grade B-
QuantHub Verdict
AMZN has more upside to fair value
(+18.5%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMZN |
PYPL |
| Current Price |
$251.19 |
$52.71 |
| Fair Value Estimate |
$297.67 |
$57.50 |
| Upside to Fair Value |
+18.5%
|
+9.1%
|
| Market Cap |
$2,702.1B |
$45.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
11.2x
|
6.8x
|
| Price / Sales |
3.5x
|
1.3x
|
| Price / FCF |
—
|
7.2x
|
| Revenue Growth YoY |
+19.6%
|
+4.8%
|
| Gross Margin |
50.8%
|
45.8%
|
| Operating Margin |
12.1%
|
18.8%
|
| Return on Equity |
30.5%
|
24.4%
|
| Dividend Yield |
0% |
1.06% |
| FCF Yield |
—
|
13.97%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Amazon.com operates a vast global retail enterprise spanning online and physical stores, third-party seller services, advertising, subscription offerings, and Amazon Web Services, the world's largest cloud infrastructure provider. The business quality is high: trailing-twelve-month gross margin of 50.8%, operating margin of 12.1%, and net margin of 17.4% reflect a durable mix shift toward high-ma…
PayPal operates a global digital-payments platform spanning branded checkout, Venmo, Braintree merchant processing, credit products and fraud-risk infrastructure across approximately 200 markets. Business quality is medium: its two-sided network, trusted brand, broad merchant distribution and risk capabilities remain meaningful assets, but its highest-value branded-checkout franchise is under com…
Accumulation Zones
| Metric |
AMZN |
PYPL |
| Zone Low |
$223.25 |
$43.12 |
| Zone High |
$253.02 |
$48.88 |
| In Buy Zone? |
Yes
|
No
|