Mimecast Limited (MIME) vs. PayPal Holdings (PYPL) Head to Head Analysis

Mimecast Limited (NASDAQ: MIME) and PayPal Holdings (NASDAQ:PYPL) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitabiliy, analyst recommendations, institutional ownership, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations for Mimecast Limited and PayPal Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mimecast Limited 0 1 12 0 2.92
PayPal Holdings 0 9 29 1 2.79

Mimecast Limited currently has a consensus price target of $31.08, indicating a potential upside of 12.34%. PayPal Holdings has a consensus price target of $60.21, indicating a potential upside of 3.78%. Given Mimecast Limited’s stronger consensus rating and higher possible upside, research analysts clearly believe Mimecast Limited is more favorable than PayPal Holdings.

Profitability

This table compares Mimecast Limited and PayPal Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mimecast Limited -3.73% -9.67% -3.93%
PayPal Holdings 12.82% 11.10% 4.87%

Risk and Volatility

Mimecast Limited has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, PayPal Holdings has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Institutional & Insider Ownership

48.0% of Mimecast Limited shares are held by institutional investors. Comparatively, 81.3% of PayPal Holdings shares are held by institutional investors. 6.0% of PayPal Holdings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Mimecast Limited and PayPal Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mimecast Limited $203.26 million 7.67 $4.83 million ($0.13) -212.85
PayPal Holdings $11.76 billion 5.93 $2.26 billion $1.25 46.42

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

Summary

PayPal Holdings beats Mimecast Limited on 11 of the 14 factors compared between the two stocks.

Mimecast Limited Company Profile

Mimecast Limited is a provider of cloud security and risk management services for corporate information and e-mail. The Company’s suite of cloud services protects customers from the business and data security risks. It also mitigates the business disruption that e-mail failure or downtime causes. In addition, its archiving services secure, store and manage critical corporate communications and information to address the compliance and e-discovery requirements. It has developed its cloud architecture to offer customers e-mail security, continuity and archiving capabilities in a single service. It has developed an operating system (OS) called Mime OS for native cloud services. It protects inbound and outbound e-mail from malware, spam, threats, e-mail denial of service (DoS) and distributed denial of service (DDoS), data leaks and other security threats. It also offers service bundles, and Mimecast mobile and desktop applications.

PayPal Holdings Company Profile

PayPal Holdings, Inc. is a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants. The Company’s combined payment solutions, including its PayPal, PayPal Credit, Braintree, Venmo, Xoom and Paydiant products, compose its Payments Platform. It operates a two-sided global technology platform that links its customers, both merchants and consumers, around the globe to facilitate the processing of payment transactions, allowing it to connect merchants and consumers. It allows its customers to use their account for both purchase and paying for goods, as well as to transfer and withdraw funds. It enables consumers to exchange funds with merchants using funding sources, which include bank account, PayPal account balance, PayPal Credit account, credit and debit card or other stored value products. It offers consumers person-to-person payment solutions through its PayPal Website and mobile application, Venmo and Xoom.

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