COMPARE · Data as of August 28, 2026
BFH vs PYPL
Verdict: Side-by-side breakdown using the Bull Rankings model. BFH scored 80.0, PYPL scored 91.0 — PYPL leads.
Compare another set
BFH
Bread Financial Holdings, Inc.
70.1Fin
$105.74 · $4.1B
fundamentals as of
Strength gap
6.5
BFH leads
PYPL
PayPal Holdings, Inc.
63.6Fin
$54.00 · $46.2B
fundamentals as of
At a glance · who leads each dimension, on the model's own rules
- CheapestBFH8.4x
- Fastest growthPYPL+5.8%
- Largest discount to fair valueBFH-88%
Side by side · every name on one set of axes
Growth against the P/E multiple. Up and to the right is cheaper and faster — the quality-growth idea in one picture. Points beyond the axis are pinned to the edge and marked off-scale rather than allowed to compress everything else.
Fundamentals, head-to-head
BFH
PYPL
$2.2bB
FCF
$5.5bB+
+0.2%C
Rev
+5.8%C+
—
D/E
0.72B
8.4xA-
P/E
10.2xA-
3.91D
PEG
1.14B+
Winner per row is the stronger grade; where grades tie, the better figure breaks it. A true tie or a missing value shows no highlight.
Valuation · DCF cross-check
BFH
PYPL
88% below
Price vs fair valuelower is cheaper
36% below
decline
Growth the price implies10-yr FCF · lower = less priced in
~-6%/yr
+659%
1-yr DCF upside
+48%
+723%
5-yr DCF upside
+57%
+823%
10-yr DCF upside
+70%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
The companies
BFHBread Financial Holdings, Inc.
Why now
Credit Services · market cap $4.1b. 8% off the 52-week high of $114.53. 16 sell-side analysts rate this a Buy with a mean 1-yr target of $115.44 (implying +9% upside).
Moat
Net margin 21% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 17% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
Regulatory capital risk — stricter capital requirements (CCAR, Basel) can force a dividend cut or a capital raise; the largest banks are most exposed because they're held to the tightest standards.
PYPLPayPal Holdings, Inc.
Why now
Credit Services · market cap $46.2b. Down 32% from 52-week high of $79.22 — deep drawdown territory. 33 sell-side analysts rate this a Hold with a mean 1-yr target of $60.20 (implying +11% upside).
Moat
Net margin 15% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 25% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 109% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Down 32% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Balance-sheet financial — book value, net interest margin, and credit loss provisions are the lever points; a rates regime change or a deterioration in the loan book moves the stock more than EPS does.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
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