Shift4 Payments and PayPal present contrasting investment cases in 2026, with Shift4 offering faster growth and a lower valuation while PayPal provides stability and massive free cash flow. Shift4 Payments reported fiscal 2025 revenue of nearly $4.2 billion, a 25.5% increase, and net income of approximately $119 million, while PayPal posted roughly $33.2 billion in revenue, up 4.3%, and net income of about $5.2 billion. Shift4 trades at a forward price-to-earnings ratio of 6.5 and a price-to-sales ratio of 0.9, compared to PayPal's 8.2 and 1.2, respectively, against a sector benchmark forward P/E of 37.6. The author, who owns both stocks, favors Shift4 for its multibagger potential driven by 34% sales growth and 43% adjusted EBITDA growth in 2025, along with its leadership in U.S. hospitality, sports, entertainment, and luxury brand payments, though notes added risk from its acquisition-heavy strategy. PayPal's growth story appears to be maturing, and while its Venmo unit may be sold or spun off, the author has stopped adding to the position, preferring Shift4's medium-risk, high-reward profile.
Shift4 Payments IncShift4 Payments reported strong fiscal 2025 revenue growth of 25.5% and trades at a low forward P/E of 6.5, making it a favorable buy according to the author.
PayPal Holdings IncPayPal's growth is maturing with only 4.3% revenue growth, and the author has stopped adding to the position, preferring Shift4.