PYPL vs SBUX: Which Is the Better Buy?
Side-by-side comparison of PayPal Holdings, Inc. and Starbucks Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-18.
PayPal Holdings, Inc. · Financial Services
$52.71
+9.1% upside to fair value
Med Conviction
Grade B-
VS
Starbucks Corporation · Consumer Cyclical
$96.67
+12.3% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
SBUX has more upside to fair value
(+12.3%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
PYPL |
SBUX |
| Current Price |
$52.71 |
$96.67 |
| Fair Value Estimate |
$57.50 |
$108.52 |
| Upside to Fair Value |
+9.1%
|
+12.3%
|
| Market Cap |
$45.1B |
$110.2B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
6.8x
|
22.0x
|
| Price / Sales |
1.3x
|
2.9x
|
| Price / FCF |
7.2x
|
30.4x
|
| Revenue Growth YoY |
+4.8%
|
-1.4%
|
| Gross Margin |
45.8%
|
31.7%
|
| Operating Margin |
18.8%
|
9.4%
|
| Return on Equity |
24.4%
|
-24.3%
|
| Dividend Yield |
1.06% |
2.57% |
| FCF Yield |
13.97%
|
3.29%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
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…
Starbucks is the world's largest specialty coffee retailer, operating company-owned and licensed coffeehouses across North America, International, and Channel Development segments, with a brand that has historically supported premium pricing and global scale. The business quality is currently strained: revenue declined 1.4% year over year in the most recent quarter, TTM operating margin is 9.4%, …
Accumulation Zones
| Metric |
PYPL |
SBUX |
| Zone Low |
$43.12 |
$81.39 |
| Zone High |
$48.88 |
$92.24 |
| In Buy Zone? |
No
|
No
|