PYPL vs SBUX: Which Is the Better Buy?

Side-by-side comparison of PayPal Holdings, Inc. and Starbucks Corporation β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-06-20.
PayPal Holdings, Inc. Β· Financial Services
$42.51
+45.0% upside to fair value
Grade B
VS
Starbucks Corporation Β· Consumer Cyclical
$100.65
-6.1% 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 β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric PYPL SBUX
Current Price $42.51 $100.65
Fair Value Estimate $61.64 $94.50
Upside to Fair Value +45.0% -6.1%
Market Cap $37.5B $114.7B
Forward P/E 7.7x 76.7x
EV / EBITDA 5.3x 25.6x
Price / Sales 1.1x 3.0x
Price / FCF 6.8x 42.1x
Revenue Growth YoY +7.2% +8.8%
Gross Margin 46.1% 20.4%
Operating Margin 17.9% 9.3%
Return on Equity 25.1% -18.3%
Dividend Yield 0% 0%
FCF Yield 14.71% 2.38%
Analyst Consensus Sell Hold
Investment Thesis
PYPL β€” PayPal Holdings, Inc.
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 …
SBUX β€” Starbucks Corporation
Starbucks Corporation operates a global coffeehouse chain with a strong brand and a leading digital/mobile platform, serving approximately 90 million customers weekly through over 28,000 stores in 77 countries. The company benefits from a durable competitive moat based on its extensive store footprint, brand recognition, and digital engagement rather than proprietary products. Despite solid reven…
Accumulation Zones
Metric PYPL SBUX
Zone Low $46.23 $70.88
Zone High $52.39 $80.33
In Buy Zone? Yes No
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