PayPal (NASDAQ:PYPL) versus Cantaloupe (NASDAQ:CTLP) Head-To-Head Contrast

PayPal (NASDAQ:PYPL) and Cantaloupe (NASDAQ:CTLP) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Institutional & Insider Ownership

68.3% of PayPal shares are owned by institutional investors. Comparatively, 75.8% of Cantaloupe shares are owned by institutional investors. 0.6% of PayPal shares are owned by company insiders. Comparatively, 7.1% of Cantaloupe shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares PayPal and Cantaloupe”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PayPal	$33.17 billion	1.20	$5.23 billion	$5.33	8.49
Cantaloupe	$320.82 million	2.57	$64.53 million	$0.18	62.22

PayPal has higher revenue and earnings than Cantaloupe. PayPal is trading at a lower price-to-earnings ratio than Cantaloupe, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for PayPal and Cantaloupe, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PayPal	5	32	8	0	2.07
Cantaloupe	1	6	1	0	2.00

PayPal currently has a consensus target price of $55.85, suggesting a potential upside of 23.48%. Cantaloupe has a consensus target price of $12.60, suggesting a potential upside of 12.50%. Given PayPal’s stronger consensus rating and higher probable upside, equities analysts clearly believe PayPal is more favorable than Cantaloupe.

Profitability

This table compares PayPal and Cantaloupe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PayPal	15.00%	25.02%	6.30%
Cantaloupe	1.15%	4.94%	3.22%

Risk and Volatility

PayPal has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Cantaloupe has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Summary

PayPal beats Cantaloupe on 10 of the 14 factors compared between the two stocks.

About PayPal

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.

About Cantaloupe

Cantaloupe, Inc., a digital payments and software services company, provides technology solutions for self-service commerce market. The company offers integrated solutions for payments processing, logistics, and back-office management. It also provides G11 cashless and pulse kits that are 4G LTE digital payment devices for payment and consumer engagement applications; G11 chip kit, a digital reader that accepts contact EMV and contactless EMV payment methods; Engage series comprising Engage and Engage Combo, which are digital touchscreen devices that offers networking, security, and interactivity payment methods; and card touchscreen card readers, including P66, P100, P100Pro, and P30. In addition, the company offers self-checkout kiosks,?smart store?concepts, and the Cantaloupe Go management platform comprising Go Mini, Go MiniX, Go Plus100, Go Plus200, Go Plus300, Go Max, Cooler Cafe, and Smart Market; Go Portal, a robust cloud-based platform; and Cheq products, which supports attended and unattended self-service kiosks for the stadium, entertainment, and festival sectors. Further, it provides integrated software services for payment or asset tracking devices in the field to connect into platform for advanced data management, analytics, route scheduling, and loyalty and reward programs; and a range of self-service hardware solutions for vending, micro-markets, amusement, arcade, commercial laundry, air/vacuum, car wash, and other applications. Additionally, the company offers professional, network infrastructure, card processing, and customer/consumer services. Cantaloupe, Inc. was formerly known as USA Technologies, Inc. The company was incorporated in 1992 and is headquartered in Malvern, Pennsylvania.