Comparing Freightos (NASDAQ:CRGO) & PayPal (NASDAQ:PYPL)

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

Insider & Institutional Ownership

68.3% of PayPal shares are owned by institutional investors. Comparatively, 22.7% of Freightos shares are owned by institutional investors. 0.1% of PayPal shares are owned by insiders. Comparatively, 19.6% of Freightos shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PayPal	15.77%	25.42%	6.41%
Freightos	-59.46%	-37.28%	-25.50%

Analyst Recommendations

This is a breakdown of recent recommendations for PayPal and Freightos, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PayPal	6	31	8	0	2.04
Freightos	1	0	1	0	2.00

PayPal currently has a consensus target price of $58.11, indicating a potential upside of 30.21%. Freightos has a consensus target price of $3.00, indicating a potential upside of 82.59%. Given Freightos’ higher possible upside, analysts plainly believe Freightos is more favorable than PayPal.

Volatility & Risk

PayPal has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Freightos has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.

Valuation and Earnings

This table compares PayPal and Freightos”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PayPal	$33.17 billion	1.24	$5.23 billion	$5.41	8.25
Freightos	$29.46 million	2.87	-$17.52 million	($0.35)	-4.69

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

Summary

PayPal beats Freightos on 11 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 Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.