Remitly Global (NASDAQ:RELY – Get Free Report) and PayPal (NASDAQ:PYPL – Get Free Report) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.
Earnings & Valuation
This table compares Remitly Global and PayPal”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Remitly Global | $1.64 billion | 1.93 | $67.93 million | $0.31 | 48.42 |
| PayPal | $33.17 billion | 1.21 | $5.23 billion | $5.41 | 8.06 |
Volatility & Risk
Remitly Global has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, PayPal has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.
Profitability
This table compares Remitly Global and PayPal’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Remitly Global | 4.15% | 8.87% | 5.66% |
| PayPal | 15.77% | 25.42% | 6.41% |
Institutional & Insider Ownership
74.3% of Remitly Global shares are owned by institutional investors. Comparatively, 68.3% of PayPal shares are owned by institutional investors. 7.5% of Remitly Global shares are owned by insiders. Comparatively, 0.1% of PayPal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Remitly Global and PayPal, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Remitly Global | 0 | 1 | 10 | 1 | 3.00 |
| PayPal | 6 | 30 | 8 | 0 | 2.05 |
Remitly Global currently has a consensus price target of $22.78, indicating a potential upside of 51.75%. PayPal has a consensus price target of $58.43, indicating a potential upside of 34.05%. Given Remitly Global’s stronger consensus rating and higher probable upside, research analysts clearly believe Remitly Global is more favorable than PayPal.
Summary
Remitly Global beats PayPal on 8 of the 15 factors compared between the two stocks.
About Remitly Global
Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.
About PayPal
PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.
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