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 2026-05-05.
PayPal Holdings, Inc. · Financial Services
$50.39
+110.0% upside to fair value
Grade B
VS
Starbucks Corporation · Consumer Cyclical
$96.60
+19.0% upside to fair value
Med Conviction
Grade B+
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 |
SBUX |
| Current Price |
$50.39 |
$96.60 |
| Fair Value Estimate |
$105.84 |
$115.00 |
| Upside to Fair Value |
+110.0%
|
+19.0%
|
| Market Cap |
$45.3B |
$110.1B |
| Forward P/E |
9.0x
|
42.2x
|
| EV / EBITDA |
6.1x
|
22.5x
|
| Price / Sales |
1.4x
|
3.0x
|
| Price / FCF |
8.2x
|
45.1x
|
| Revenue Growth YoY |
+3.7%
|
+2.8%
|
| Gross Margin |
46.6%
|
24.2%
|
| Operating Margin |
18.3%
|
9.6%
|
| Return on Equity |
25.9%
|
-22.9%
|
| Dividend Yield |
0% |
2.55% |
| FCF Yield |
12.27%
|
2.2%
|
| Analyst Consensus |
Sell
|
Hold
|
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, …
Starbucks is the world's largest specialty coffee retailer with over 39,000 stores across 86 markets, generating $37.2B in annual revenue. Under CEO Brian Niccol, now 19 months into his tenure after joining from Chipotle in September 2024, the company is executing the Back to Starbucks operational turnaround focused on service speed, menu simplification, and store experience reinvention. At P/S 2…
Accumulation Zones
| Metric |
PYPL |
SBUX |
| Zone Low |
$79.38 |
$88.00 |
| Zone High |
$89.96 |
$98.00 |
| In Buy Zone? |
Yes
|
Yes
|