Paypal Holdings (NASDAQ: PYPLV) and Mimecast Limited (NASDAQ:MIME) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Valuation and Earnings

This table compares Paypal Holdings and Mimecast Limited’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Paypal Holdings N/A N/A N/A N/A N/A
Mimecast Limited $203.26 million 7.55 $4.83 million ($0.13) -207.62

Mimecast Limited has higher revenue and earnings than Paypal Holdings.

Institutional & Insider Ownership

47.7% of Mimecast Limited shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Paypal Holdings and Mimecast Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paypal Holdings 12.91% 10.50% 4.63%
Mimecast Limited -3.73% -9.67% -3.93%

Analyst Ratings

This is a summary of current ratings and target prices for Paypal Holdings and Mimecast Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paypal Holdings 0 1 3 0 2.75
Mimecast Limited 0 1 12 0 2.92

Paypal Holdings currently has a consensus price target of $47.25, indicating a potential upside of 23.08%. Mimecast Limited has a consensus price target of $31.08, indicating a potential upside of 15.17%. Given Paypal Holdings’ higher possible upside, equities analysts clearly believe Paypal Holdings is more favorable than Mimecast Limited.

Paypal Holdings Company Profile

PayPal Holdings, Inc. is a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants. The Company’s combined payment solutions, including its PayPal, PayPal Credit, Braintree, Venmo, Xoom and Paydiant products, compose its Payments Platform. It operates a two-sided global technology platform that links its customers, both merchants and consumers, around the globe to facilitate the processing of payment transactions, allowing it to connect merchants and consumers. It allows its customers to use their account for both purchase and paying for goods, as well as to transfer and withdraw funds. It enables consumers to exchange funds with merchants using funding sources, which include bank account, PayPal account balance, PayPal Credit account, credit and debit card or other stored value products. It offers consumers person-to-person payment solutions through its PayPal Website and mobile application, Venmo and Xoom.

Mimecast Limited Company Profile

Mimecast Limited is a provider of cloud security and risk management services for corporate information and e-mail. The Company’s suite of cloud services protects customers from the business and data security risks. It also mitigates the business disruption that e-mail failure or downtime causes. In addition, its archiving services secure, store and manage critical corporate communications and information to address the compliance and e-discovery requirements. It has developed its cloud architecture to offer customers e-mail security, continuity and archiving capabilities in a single service. It has developed an operating system (OS) called Mime OS for native cloud services. It protects inbound and outbound e-mail from malware, spam, threats, e-mail denial of service (DoS) and distributed denial of service (DDoS), data leaks and other security threats. It also offers service bundles, and Mimecast mobile and desktop applications.

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