PayPal Holdings Return On Asset vs. Profit Margin

2PP Stock   84.16  0.52  0.62%   
Based on PayPal Holdings' profitability indicators, PayPal Holdings may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess PayPal Holdings' ability to earn profits and add value for shareholders.
For PayPal Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PayPal Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PayPal Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PayPal Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PayPal Holdings over time as well as its relative position and ranking within its peers.
  
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For more information on how to buy PayPal Stock please use our How to Invest in PayPal Holdings guide.
Please note, there is a significant difference between PayPal Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if PayPal Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PayPal Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

PayPal Holdings Profit Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining PayPal Holdings's current stock value. Our valuation model uses many indicators to compare PayPal Holdings value to that of its competitors to determine the firm's financial worth.
PayPal Holdings is rated fifth in return on asset category among its peers. It is number one stock in profit margin category among its peers fabricating about  2.69  of Profit Margin per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the PayPal Holdings' earnings, one of the primary drivers of an investment's value.

PayPal Profit Margin vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

PayPal Holdings

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0316
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

PayPal Holdings

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.09 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

PayPal Profit Margin Comparison

PayPal Holdings is currently under evaluation in profit margin category among its peers.

PayPal Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on PayPal Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of PayPal Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the PayPal Holdings' important profitability drivers and their relationship over time.

Use PayPal Holdings in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PayPal Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PayPal Holdings will appreciate offsetting losses from the drop in the long position's value.

PayPal Holdings Pair Trading

PayPal Holdings Pair Trading Analysis

The ability to find closely correlated positions to PayPal Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PayPal Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PayPal Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PayPal Holdings to buy it.
The correlation of PayPal Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PayPal Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PayPal Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PayPal Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your PayPal Holdings position

In addition to having PayPal Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Large & Mid Caps ETFs Thematic Idea Now

Large & Mid Caps ETFs
Large & Mid Caps ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Large & Mid Caps ETFs theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Large & Mid Caps ETFs Theme or any other thematic opportunities.
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Additional Tools for PayPal Stock Analysis

When running PayPal Holdings' price analysis, check to measure PayPal Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy PayPal Holdings is operating at the current time. Most of PayPal Holdings' value examination focuses on studying past and present price action to predict the probability of PayPal Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PayPal Holdings' price. Additionally, you may evaluate how the addition of PayPal Holdings to your portfolios can decrease your overall portfolio volatility.