PayPal (NASDAQ:PYPL – Get Free Report) and Grab (NASDAQ:GRAB – Get Free Report) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Profitability
This table compares PayPal and Grab’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PayPal | 14.26% | 20.84% | 5.39% |
| Grab | -18.43% | -6.77% | -5.10% |
Risk and Volatility
PayPal has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Grab has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PayPal | 0 | 23 | 12 | 0 | 2.34 |
| Grab | 0 | 0 | 5 | 0 | 3.00 |
PayPal presently has a consensus price target of $70.47, suggesting a potential upside of 5.49%. Grab has a consensus price target of $4.93, suggesting a potential upside of 54.02%. Given Grab’s stronger consensus rating and higher possible upside, analysts clearly believe Grab is more favorable than PayPal.
Institutional & Insider Ownership
68.3% of PayPal shares are owned by institutional investors. Comparatively, 55.5% of Grab shares are owned by institutional investors. 0.1% of PayPal shares are owned by company insiders. Comparatively, 3.6% of Grab shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares PayPal and Grab’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PayPal | $29.77 billion | 2.42 | $4.25 billion | $3.84 | 17.50 |
| Grab | $2.36 billion | 5.30 | -$434.00 million | ($0.10) | -31.90 |
PayPal has higher revenue and earnings than Grab. Grab is trading at a lower price-to-earnings ratio than PayPal, indicating that it is currently the more affordable of the two stocks.
Summary
PayPal beats Grab on 10 of the 14 factors compared between the two stocks.
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.
About Grab
Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. The company is headquartered in Singapore.
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