Comprehensive Stock Comparison
Compare PayPal Holdings, Inc. (PYPL) vs The Western Union Company (WU) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | PYPL | 4.8% revenue growth vs WU's -4.0% |
| Value | WU | Lower P/E (5.3x vs 8.7x) |
| Quality / Margins | PYPL | 15.7% net margin vs WU's 12.4% |
| Stability / Safety | WU | Beta 0.71 vs PYPL's 1.30 |
| Dividends | WU | 9.8% yield, 11-year raise streak, vs PYPL's 0.3% |
| Momentum (1Y) | WU | -2.4% vs PYPL's -34.8% |
| Efficiency (ROA) | PYPL | 6.5% ROA vs WU's 6.0%, ROIC 16.3% vs 23.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
PayPal operates a global digital payments platform that enables online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. It generates revenue primarily from transaction fees — taking a percentage of each payment processed — with additional income from value-added services like PayPal Credit and merchant solutions. Its competitive advantage lies in its massive two-sided network of over 400 million active accounts and merchants, creating powerful network effects that make it difficult for competitors to displace.
Western Union is a global money transfer and payment services company that enables consumers and businesses to send money across borders. It generates revenue primarily from transaction fees on money transfers — with its Consumer-to-Consumer segment accounting for the vast majority — supplemented by foreign exchange spreads and business payment solutions. Its key competitive advantage is an extensive global agent network spanning over 200 countries and territories, creating a physical presence that digital-only competitors cannot easily replicate.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
WU leads in 4 of 6 categories (Valuation Metrics, Total Returns). PYPL leads in 1 (Financial Metrics). 1 tied.
Financial Metrics (TTM)
PYPL is the larger business by revenue, generating $33.3B annually — 8.2x WU's $4.0B. Profitability is closely matched — net margins range from 15.7% (PYPL) to 12.4% (WU).
| Metric | PYPLPayPal Holdings, … | WUThe Western Union… |
|---|---|---|
| RevenueTrailing 12 months | $33.3B | $4.0B |
| EBITDAEarnings before interest/tax | $7.2B | $934M |
| Net IncomeAfter-tax profit | $5.2B | $500M |
| Free Cash FlowCash after capex | $5.6B | $393M |
| Gross MarginGross profit ÷ Revenue | +47.0% | +28.7% |
| Operating MarginEBIT ÷ Revenue | +19.7% | +19.4% |
| Net MarginNet income ÷ Revenue | +15.7% | +12.4% |
| FCF MarginFCF ÷ Revenue | +16.7% | +9.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +37.8% | -68.1% |
Valuation Metrics
At 6.3x trailing earnings, WU trades at a 26% valuation discount to PYPL's 8.5x P/E. On an enterprise value basis, WU's 1.9x EV/EBITDA is more attractive than PYPL's 5.9x.
| Metric | PYPLPayPal Holdings, … | WUThe Western Union… |
|---|---|---|
| Market CapShares × price | $42.5B | $3.0B |
| Enterprise ValueMkt cap + debt − cash | $44.5B | $1.8B |
| Trailing P/EPrice ÷ TTM EPS | 8.54x | 6.29x |
| Forward P/EPrice ÷ next-FY EPS est. | 8.68x | 5.35x |
| PEG RatioP/E ÷ EPS growth rate | 0.96x | — |
| EV / EBITDAEnterprise value multiple | 5.90x | 1.90x |
| Price / SalesMarket cap ÷ Revenue | 1.28x | 0.75x |
| Price / BookPrice ÷ Book value/share | 2.21x | 3.29x |
| Price / FCFMarket cap ÷ FCF | 7.64x | 7.74x |
Profitability & Efficiency
WU delivers a 52.2% return on equity — every $100 of shareholder capital generates $52 in annual profit, vs $26 for PYPL. On the Piotroski fundamental quality scale (0–9), PYPL scores 8/9 vs WU's 5/9, reflecting strong financial health.
| Metric | PYPLPayPal Holdings, … | WUThe Western Union… |
|---|---|---|
| ROE (TTM)Return on equity | +25.8% | +52.2% |
| ROA (TTM)Return on assets | +6.5% | +6.0% |
| ROICReturn on invested capital | +16.3% | +23.3% |
| ROCEReturn on capital employed | +19.6% | +12.5% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 5 |
| Debt / EquityFinancial leverage | 0.49x | — |
| Net DebtTotal debt minus cash | $1.9B | -$1.2B |
| Cash & Equiv.Liquid assets | $8.0B | $1.2B |
| Total DebtShort + long-term debt | $10.0B | $0 |
| Interest CoverageEBIT ÷ Interest expense | 12.25x | 5.35x |
Total Returns (with DRIP)
A $10,000 investment in WU five years ago would be worth $6,052 today (with dividends reinvested), compared to $1,694 for PYPL. Over the past 12 months, WU leads with a -2.4% total return vs PYPL's -34.8%. The 3-year compound annual growth rate (CAGR) favors WU at -1.3% vs PYPL's -14.3% — a key indicator of consistent wealth creation.
| Metric | PYPLPayPal Holdings, … | WUThe Western Union… |
|---|---|---|
| YTD ReturnYear-to-date | -20.5% | +4.3% |
| 1-Year ReturnPast 12 months | -34.8% | -2.4% |
| 3-Year ReturnCumulative with dividends | -37.0% | -3.9% |
| 5-Year ReturnCumulative with dividends | -83.1% | -39.5% |
| 10-Year ReturnCumulative with dividends | +21.5% | -0.7% |
| CAGR (3Y)Annualised 3-year return | -14.3% | -1.3% |
Risk & Volatility
WU is the less volatile stock with a 0.71 beta — it tends to amplify market swings less than PYPL's 1.30 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. WU currently trades 80.6% from its 52-week high vs PYPL's 58.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | PYPLPayPal Holdings, … | WUThe Western Union… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.30x | 0.71x |
| 52-Week HighHighest price in past year | $79.50 | $11.95 |
| 52-Week LowLowest price in past year | $38.46 | $7.85 |
| % of 52W HighCurrent price vs 52-week peak | +58.1% | +80.6% |
| RSI (14)Momentum oscillator 0–100 | 46.2 | 49.4 |
| Avg Volume (50D)Average daily shares traded | 18.5M | 6.6M |
Analyst Outlook
Wall Street rates PYPL as "Hold" and WU as "Hold". Consensus price targets imply 14.8% upside for PYPL (target: $53) vs -6.5% for WU (target: $9). For income investors, WU offers the higher dividend yield at 9.79% vs PYPL's 0.29%.
| Metric | PYPLPayPal Holdings, … | WUThe Western Union… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $53.05 | $9.00 |
| # AnalystsCovering analysts | 69 | 48 |
| Dividend YieldAnnual dividend ÷ price | +0.3% | +9.8% |
| Dividend StreakConsecutive years of raises | 1 | 11 |
| Dividend / ShareAnnual DPS | $0.13 | $0.94 |
| Buyback YieldShare repurchases ÷ mkt cap | +14.2% | +7.7% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| PayPal Holdings, In… (PYPL) | 100 | 46.37 | -53.6% |
| The Western Union C… (WU) | 100 | 40.53 | -59.5% |
The Western Union C… (WU) returned -39% over 5 years vs PayPal Holdings, In… (PYPL)'s -83%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| PayPal Holdings, In… (PYPL) | $10.8B | $33.3B | +207.5% |
| The Western Union C… (WU) | $5.4B | $4.0B | -25.5% |
PayPal Holdings, Inc.'s revenue grew from $10.8B (2016) to $33.3B (2025) — a 13.3% CAGR. The Western Union Company's revenue grew from $5.4B (2016) to $4.0B (2025) — a -3.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| PayPal Holdings, In… (PYPL) | 12.9% | 15.7% | +21.5% |
| The Western Union C… (WU) | 4.7% | 12.4% | +164.8% |
PayPal Holdings, Inc.'s net margin went from 13% (2016) to 16% (2025). The Western Union Company's net margin went from 5% (2016) to 12% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| PayPal Holdings, In… (PYPL) | 50.1 | 10.8 | -78.4% |
| The Western Union C… (WU) | 9.1 | 6.1 | -33.0% |
PayPal Holdings, Inc. has traded in a 11x–66x P/E range over 9 years; current trailing P/E is ~9x. The Western Union Company has traded in a 4x–12x P/E range over 8 years; current trailing P/E is ~6x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| PayPal Holdings, In… (PYPL) | 1.15 | 5.41 | +370.4% |
| The Western Union C… (WU) | 0.51 | 1.53 | +200.0% |
PayPal Holdings, Inc.'s EPS grew from $1.15 (2016) to $5.41 (2025) — a 19% CAGR. The Western Union Company's EPS grew from $0.51 (2016) to $1.53 (2025) — a 13% CAGR.
Chart 6Free Cash Flow — 5 Years
PayPal Holdings, Inc. generated $6B FCF in 2025 (+14% vs 2021). The Western Union Company generated $393M FCF in 2025 (-53% vs 2021).
PYPL vs WU: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is PYPL or WU a better buy right now?
The Western Union Company (WU) offers the better valuation at 6.3x trailing P/E (5.3x forward), making it the more compelling value choice. Analysts rate PayPal Holdings, Inc. (PYPL) a "Hold" — based on 69 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.
02Which has the better valuation — PYPL or WU?
On trailing P/E, The Western Union Company (WU) is the cheapest at 6.3x versus PayPal Holdings, Inc. at 8.5x. On forward P/E, The Western Union Company is actually cheaper at 5.3x.
03Which is the better long-term investment — PYPL or WU?
Over the past 5 years, The Western Union Company (WU) delivered a total return of -39.5%, compared to -83.1% for PayPal Holdings, Inc. (PYPL). A $10,000 investment in WU five years ago would be worth approximately $6K today (assuming dividends reinvested). Over 10 years, the gap is even starker: PYPL returned +21.5% versus WU's -0.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — PYPL or WU?
By beta (market sensitivity over 5 years), The Western Union Company (WU) is the lower-risk stock at 0.71β versus PayPal Holdings, Inc.'s 1.30β — meaning PYPL is approximately 84% more volatile than WU relative to the S&P 500.
05Which has better profit margins — PYPL or WU?
PayPal Holdings, Inc. (PYPL) is the more profitable company, earning 15.7% net margin versus 12.4% for The Western Union Company — meaning it keeps 15.7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PYPL leads at 19.7% versus 19.4% for WU. At the gross margin level — before operating expenses — PYPL leads at 47.0%, 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.
06Is PYPL or WU more undervalued right now?
On forward earnings alone, The Western Union Company (WU) trades at 5.3x forward P/E versus 8.7x for PayPal Holdings, Inc. — 3.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PYPL: 14.8% to $53.05.
07Which pays a better dividend — PYPL or WU?
All stocks in this comparison pay dividends. The Western Union Company (WU) offers the highest yield at 9.8%, versus 0.3% for PayPal Holdings, Inc. (PYPL).
08Is PYPL or WU better for a retirement portfolio?
For long-horizon retirement investors, The Western Union Company (WU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.71), 9.8% yield). Both have compounded well over 10 years (WU: -0.7%, PYPL: +21.5%), 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.
09What are the main differences between PYPL and WU?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. WU 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.
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