Here's My Best Fintech Stock to Own Now

By Jose Najarro – Mar 18, 2021 at 11:43AM

NASDAQ: PYPL

PayPal

Market Cap

$68B

Today's Change

(0.36%) $0.23

Current Price

$64.67

Price as of April 24, 2024, 2:25 p.m. ET

Is this company in your portfolio?

In todays' video, I talk about which is the best fintech stock to own right now. I'll compare two giants in the fintech world, Paypal (PYPL 0.36%) and Square (SQ -1.61%).

These are three reasons to choose Paypal as a potential investment over Square.

Paypal has a track record of being profitable and has better profit margins than Square.
Paypal has better operating cash Flow margins than Square.
The most recent 10-Q report shows a solid balance sheet.

But these are three reasons to choose Square as a potential investment over Paypal.

In the past three years, the CAGR for Revenue has grown faster for Square than for Paypal.
Analysts expect Square will increase its revenue more quickly than Paypal.
P/S valuation on both current and forward sales are cheaper for Square.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Jose Najarro owns shares of Microsoft, PayPal Holdings, and Square. The Motley Fool owns shares of and recommends Amazon, Apple, Microsoft, PayPal Holdings, and Square and recommends the following options: short March 2023 $130 calls on Apple, long January 2022 $1920 calls on Amazon, short January 2022 $1940 calls on Amazon, long March 2023 $120 calls on Apple, and long January 2022 $75 calls on PayPal Holdings. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.