Paypal (NASDAQ:PYPL) and B. Riley Financial (NASDAQ:RILY) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.
Risk & Volatility
Paypal has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, B. Riley Financial has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.
Insider & Institutional Ownership
80.5% of Paypal shares are owned by institutional investors. Comparatively, 46.7% of B. Riley Financial shares are owned by institutional investors. 0.2% of Paypal shares are owned by insiders. Comparatively, 24.6% of B. Riley Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Paypal and B. Riley Financial’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Paypal||$15.45 billion||8.08||$2.06 billion||$1.79||59.28|
|B. Riley Financial||$422.99 million||1.58||$15.51 million||N/A||N/A|
Paypal has higher revenue and earnings than B. Riley Financial.
This is a summary of recent recommendations for Paypal and B. Riley Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|B. Riley Financial||0||0||0||0||N/A|
Paypal currently has a consensus price target of $122.39, suggesting a potential upside of 15.33%. Given Paypal’s higher probable upside, analysts clearly believe Paypal is more favorable than B. Riley Financial.
This table compares Paypal and B. Riley Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|B. Riley Financial||4.76%||16.21%||2.23%|
B. Riley Financial pays an annual dividend of $0.70 per share and has a dividend yield of 2.8%. Paypal does not pay a dividend.
Paypal beats B. Riley Financial on 11 of the 13 factors compared between the two stocks.
Paypal Company Profile
PayPal Holdings, Inc. operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and iZettle products. The company's Payments Platform allows consumers to send payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. It also offers gateway services that enable merchants to accept payments online with credit or debit cards. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.
B. Riley Financial Company Profile
B. Riley Financial, Inc., through its subsidiaries, provides collaborative financial services and solutions in North America, Australia, and Europe. The company operates in four segments: Capital Markets, Auction and Liquidation, Valuation and Appraisal, and Principal Investments – United Online and magicJack. It offers investment banking services, including merger and acquisitions, restructuring advisory, initial and secondary public offerings, and institutional private placements; and corporate finance, research, securities lending, wealth management, and sales and trading services to corporate, institutional, and high net worth clients. The company also provides retail store liquidation, and wholesale and industrial assets disposition services; valuation and appraisal services to financial institutions, lenders, private equity firms, and other providers of capital; and consumer subscription services consisting of Internet access services and devices under the NetZero and Juno brands, as well as voice over IP cloud-based technology and communication services. In addition, it offers advisory services to private funds, and institutional and high net worth investors; multi-family office practice and wealth management services to ultra-high net worth individuals and families; and senior secured and second lien secured loans to middle market public and the private U.S. companies. The company was formerly known as Great American Group, Inc. and changed its name to B. Riley Financial, Inc. in November 2014. B. Riley Financial, Inc. was founded in 1973 and is headquartered in Woodland Hills, California.
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