PYPL vs FIS

For growth investors, Fidelity National Information Services, Inc.

(FIS) is the stronger pick with 5. 4% revenue growth year-over-year, versus 4. 3% for PayPal Holdings, Inc. (PYPL). PayPal Holdings, Inc. (PYPL) offers the better valuation at 8. 6x trailing P/E (8. 8x forward), making it the more compelling value choice. Analysts rate Fidelity National Information Services, Inc. (FIS) a "Buy" — based on 37 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, PayPal Holdings, Inc.

(PYPL) is the cheapest at 8. 6x versus Fidelity National Information Services, Inc. at 62. 1x. On forward P/E, Fidelity National Information Services, Inc. is actually cheaper at 7. 4x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Fidelity National Information Services, Inc. wins at 0. 30x versus PayPal Holdings, Inc. 's 0. 99x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Fidelity National Information Services, Inc.

(FIS) delivered a total return of -62. 8%, compared to -81. 1% for PayPal Holdings, Inc. (PYPL). Over 10 years, the gap is even starker: PYPL returned +20. 1% versus FIS's -12. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Fidelity National Information Services, Inc.

(FIS) is the lower-risk stock at 0. 76β versus PayPal Holdings, Inc. 's 1. 39β — meaning PYPL is approximately 84% more volatile than FIS relative to the S&P 500. On balance sheet safety, Fidelity National Information Services, Inc. (FIS) carries a lower debt/equity ratio of 29% versus 49% for PayPal Holdings, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Fidelity National Information Services, Inc.

(FIS) is pulling ahead at 5. 4% versus 4. 3% for PayPal Holdings, Inc. (PYPL). On earnings-per-share growth, the picture is similar: PayPal Holdings, Inc. grew EPS 35. 6% year-over-year, compared to -47. 2% for Fidelity National Information Services, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

PayPal Holdings, Inc.

(PYPL) is the more profitable company, earning 15. 8% net margin versus 3. 6% for Fidelity National Information Services, Inc. — meaning it keeps 15. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PYPL leads at 18. 3% versus 16. 5% for FIS. At the gross margin level — before operating expenses — PYPL leads at 46. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Fidelity National Information Services, Inc. (FIS) is the more undervalued stock at a PEG of 0. 30x versus PayPal Holdings, Inc. 's 0. 99x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Fidelity National Information Services, Inc. (FIS) trades at 7. 4x forward P/E versus 8. 8x for PayPal Holdings, Inc. — 1. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FIS: 44. 6% to $67. 38.

All stocks in this comparison pay dividends.

Fidelity National Information Services, Inc. (FIS) offers the highest yield at 3. 5%, versus 0. 3% for PayPal Holdings, Inc. (PYPL).

For long-horizon retirement investors, Fidelity National Information Services, Inc.

(FIS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 76), 3. 5% yield). Both have compounded well over 10 years (FIS: -12. 4%, PYPL: +20. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (PYPL (Financial Services) and FIS (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: PYPL is a mid-cap deep-value stock; FIS is a mid-cap income-oriented stock. FIS pays a dividend while PYPL does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.