PYPL vs. MA: Which Stock Should Value Investors Buy Now?

Core Viewpoint - The article compares Paypal (PYPL) and MasterCard (MA) to determine which stock is more attractive to value investors, highlighting that PYPL has a stronger earnings outlook and better valuation metrics than MA [1][3]. Valuation Metrics - PYPL has a forward P/E ratio of 14.62, significantly lower than MA's forward P/E of 35.17, indicating that PYPL may be undervalued compared to MA [5]. - The PEG ratio for PYPL is 1.23, while MA's PEG ratio is 2.45, suggesting that PYPL offers better value when considering expected earnings growth [5]. - PYPL's P/B ratio stands at 3.57, in stark contrast to MA's P/B ratio of 76.51, further supporting the notion that PYPL is more attractively valued [6]. Investment Grades - PYPL currently holds a Zacks Rank of 2 (Buy), while MA has a Zacks Rank of 3 (Hold), indicating a stronger investment outlook for PYPL [3]. - Based on the valuation figures and earnings outlook, PYPL is rated with a Value grade of B, whereas MA has a Value grade of D, reinforcing PYPL's position as the superior value option [6].