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 2026-05-05.
PayPal Holdings, Inc. · Financial Services
$50.39
+110.0% upside to fair value
Grade B
VS
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
QuantHub Verdict
PYPL has more upside to fair value
(+110.0%).
PYPL trades at a lower forward P/E
(9.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
PYPL |
RTX |
| Current Price |
$50.39 |
$172.90 |
| Fair Value Estimate |
$105.84 |
$136.05 |
| Upside to Fair Value |
+110.0%
|
-21.3%
|
| Market Cap |
$45.3B |
$232.8B |
| Forward P/E |
9.0x
|
32.1x
|
| EV / EBITDA |
6.1x
|
19.2x
|
| Price / Sales |
1.4x
|
2.6x
|
| Price / FCF |
8.2x
|
27.9x
|
| Revenue Growth YoY |
+3.7%
|
+8.7%
|
| Gross Margin |
46.6%
|
20.2%
|
| Operating Margin |
18.3%
|
10.4%
|
| Return on Equity |
25.9%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
12.27%
|
3.59%
|
| Analyst Consensus |
Sell
|
Buy
|
Investment Thesis
PayPal Holdings, Inc. operates as a leading digital payments platform offering transaction processing and value-added financial services such as consumer credit and BNPL products. The business quality is medium due to a narrowing competitive moat amid increasing pressure from big tech competitors and slowing growth in its core branded checkout segment. The stock is currently mispriced and cheap, …
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Accumulation Zones
| Metric |
PYPL |
RTX |
| Zone Low |
$79.38 |
$102.04 |
| Zone High |
$89.96 |
$115.64 |
| In Buy Zone? |
Yes
|
No
|