PYPL vs RTX: Which Is the Better Buy?
Side-by-side comparison of PayPal Holdings, Inc. and RTX Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-06-20.
PayPal Holdings, Inc. · Financial Services
$42.51
+45.0% upside to fair value
Grade B
VS
RTX Corporation · Industrials
$185.60
-25.2% upside to fair value
Grade D
QuantHub Verdict
PYPL has more upside to fair value
(+45.0%).
PYPL trades at a lower forward P/E
(7.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
PYPL |
RTX |
| Current Price |
$42.51 |
$185.60 |
| Fair Value Estimate |
$61.64 |
$138.81 |
| Upside to Fair Value |
+45.0%
|
-25.2%
|
| Market Cap |
$37.5B |
$249.9B |
| Forward P/E |
7.7x
|
34.3x
|
| EV / EBITDA |
5.3x
|
18.3x
|
| Price / Sales |
1.1x
|
2.8x
|
| Price / FCF |
6.8x
|
29.9x
|
| Revenue Growth YoY |
+7.2%
|
+8.7%
|
| Gross Margin |
46.1%
|
20.2%
|
| Operating Margin |
17.9%
|
10.9%
|
| Return on Equity |
25.1%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
14.71%
|
3.34%
|
| Analyst Consensus |
Sell
|
Buy
|
Investment Thesis
PayPal Holdings, Inc. operates as a leading global digital payments platform with a competitive moat driven by its extensive network effects, brand recognition, and scale. Despite a durable business model with 2025 revenue of $33.17 billion growing at 4.3% year-over-year and a strong return on equity of 25.1%, the company faces slowing growth and margin pressures, reflected in a 13.5% decline in …
RTX Corporation is a leading aerospace and defense company with a strong competitive moat driven by scale and an installed base in commercial aerospace via Pratt & Whitney and Collins Aerospace, and defense through Raytheon. The company benefits from a large multi-year backlog of approximately $270 billion supporting steady cash flow and mid-single-digit organic growth. Despite solid revenue grow…
Accumulation Zones
| Metric |
PYPL |
RTX |
| Zone Low |
$46.23 |
$104.11 |
| Zone High |
$52.39 |
$117.99 |
| In Buy Zone? |
Yes
|
No
|