Adyen vs Paypal: a Stock Duel
A duel in the payment sector
It is time for the second stock duel of the year: Adyen vs. PayPal! These two companies cater to different types of investors, with distinct profiles and strategies. Their 2025 YTD performances have diverged significantly. But will those trends continue? What are their key metrics? What support levels should you consider if you are thinking about entering? Let’s dive in and find out!
If you enjoy stock duels, don’t miss the one I did back in January: Accenture vs. Infosys.
Share your thoughts on both companies in the comments below!
Metrics and markets
Adyen’s first major success against PayPal came when it secured eBay as a customer, taking over from PayPal. Since then, Adyen and its innovative, unified platform have delivered strong performance and consistent growth.
Adyen remains a much faster-growing company, reflected in its premium valuation. PayPal, by contrast, trades at a much lower valuation, with a PE ratio around 14x, far from its 2020 peak when its PE exceeded 60x. While PayPal’s growth and margins have slowed since then, the company continues to expand and has leveraged its low valuation to initiate aggressive share buybacks.
That said, PayPal’s $15 billion share buyback program announced during its Q4 results represents several years' worth of free cash flow (FCF). To fund this, the company will likely take on more debt. While this may boost EPS growth, it is a clear indication that PayPal is struggling to find more avenues for growth.
On the other hand, Adyen is currently accumulating cash. While much of this cash is likely tied to customer funds, the company’s free cash flow has yet to be put to significant use. This raises questions that Adyen will need to address in the near future.
Adyen is still significantly smaller than PayPal, with $2.5 billion in revenue compared to PayPal’s $33 billion. However, it is rapidly gaining momentum and growing its market share, positioning itself as a formidable competitor in the payments industry.
Technical analysis
Used source: Marketscreener.com. Affiliate link just here
Adyen
After the recent surge, waiting a pullback would be wise to enter / reinforce:
Buying zone 1: 1,440€
Buying zone 2: 1,240€
Buying zone 3: 1,040€
Paypal
PayPal’s disappointing results have pulled the stock down, and it is now close to support levels:
Buying zone 1. $67/$70 (the current zone)
Buying zone 2. $58
Buying zone 3. $50
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