Investment Comparison: Shift4 Payments vs PayPal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Fool
- Shift4 Growth Potential: Shift4 Payments reported nearly $4.2 billion in revenue for FY 2025, marking a 25.5% increase year-over-year, with a net income of approximately $119 million and a net margin of about 2.8%, indicating strong growth potential in the hospitality and entertainment sectors.
- PayPal Market Position: PayPal achieved roughly $33.2 billion in revenue for FY 2025, a 4.3% increase from the previous year, with a net income of around $5.2 billion and a net margin close to 15.8%, solidifying its leadership in the global payments market.
- Risks and Competition: Shift4 Payments faces intense competition from players like Adyen and Block, and its debt-to-equity ratio of 3.2x may limit capital flexibility during economic downturns, while PayPal continues to navigate significant legal scrutiny despite the dismissal of some securities fraud class actions.
- Valuation Comparison: With a forward P/E ratio of 6.5x, Shift4 Payments appears more attractively priced relative to PayPal's 8.2x, highlighting its relative advantage in future earnings expectations, particularly in the context of ongoing acquisitions and market expansion.
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Analyst Views on FOUR
Wall Street analysts forecast FOUR stock price to rise
21 Analyst Rating
15 Buy
6 Hold
0 Sell
Moderate Buy
Current: 39.170
Low
90.00
Averages
113.75
High
150.00
Current: 39.170
Low
90.00
Averages
113.75
High
150.00
About FOUR
Shift4 Payments, Inc. is engaged in commerce-enabling technology. The Company is an independent provider of software and payment processing solutions in the United States based on the total volume of payments processed. Its payments platform provides omni-channel card acceptance and processing solutions across multiple payment types, including credit, debit, contactless card, Europay, MasterCard and Visa (EMV), QR Pay, and mobile wallets, as well as alternative payment methods, such as Apple Pay, Google Pay, Alipay and WeChat Pay. Through its proprietary gateway, its payments platform is integrated with over 550 software suites. It enables connectivity with the payment processors, alternative payment rails and many different payment devices. Its suite of technology solutions includes SkyTab POS, SkyTab Mobile, SkyTab Venue, Lighthouse, The Giving Block, Shift4Shop and Marketplace. Its SkyTab POS offering helps its merchants scale their business and improve operational efficiency.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Comparison: Shift4 Payments vs PayPal
- Shift4 Growth Potential: Shift4 Payments reported nearly $4.2 billion in revenue for FY 2025, marking a 25.5% increase year-over-year, with a net income of approximately $119 million and a net margin of about 2.8%, indicating strong growth potential in the hospitality and entertainment sectors.
- PayPal Market Position: PayPal achieved roughly $33.2 billion in revenue for FY 2025, a 4.3% increase from the previous year, with a net income of around $5.2 billion and a net margin close to 15.8%, solidifying its leadership in the global payments market.
- Risks and Competition: Shift4 Payments faces intense competition from players like Adyen and Block, and its debt-to-equity ratio of 3.2x may limit capital flexibility during economic downturns, while PayPal continues to navigate significant legal scrutiny despite the dismissal of some securities fraud class actions.
- Valuation Comparison: With a forward P/E ratio of 6.5x, Shift4 Payments appears more attractively priced relative to PayPal's 8.2x, highlighting its relative advantage in future earnings expectations, particularly in the context of ongoing acquisitions and market expansion.
See More
Comparing Growth Potential: Shift4 Payments vs PayPal
- Revenue Growth Comparison: Shift4 Payments reported nearly $4.2 billion in revenue for FY 2025, marking a 25.5% increase, while PayPal's revenue reached $33.2 billion with a 4.3% growth, indicating Shift4's robust growth potential in niche markets.
- Profitability Analysis: Shift4's net income was approximately $119 million with a net margin of 2.8%, whereas PayPal achieved a net income of $5.2 billion and a net margin of 15.8%, highlighting PayPal's superior profitability.
- Debt and Liquidity Status: Shift4's debt-to-equity ratio stands at 3.2x, indicating high financial leverage, while PayPal maintains a much lower ratio of 0.5x and a current ratio of 1.3, showcasing its stronger short-term debt coverage capability.
- Market Competition and Risks: Shift4 faces intense competition from companies like Adyen and Block, and its reliance on complex IT systems and AI tools increases vulnerability to cyberattacks and regulatory risks, while PayPal contends with significant legal scrutiny, particularly regarding consumer protection.
See More
Loman AI Partners with Shift4 to Boost Restaurant Revenue
- Efficiency Boost: The partnership between Loman AI and Shift4 enables restaurants to achieve 100% call answering through its voice AI platform, significantly enhancing operational efficiency and customer satisfaction while helping restaurants capture previously missed revenue.
- Order Capture Growth: Restaurants using Loman AI typically experience a 20-25% increase in order capture rates, which not only mitigates losses from unanswered calls but also raises average order values through AI-driven upselling, resulting in tens of thousands in annual savings.
- Customer Experience Improvement: The instant response and zero hold times provided by Loman AI greatly enhance customer satisfaction, allowing restaurants to better meet customer needs and thereby strengthen customer loyalty and market competitiveness.
- Technological Integration Advantage: Loman AI is purpose-built for the restaurant industry and trained on tens of millions of real guest interactions, ensuring best-in-class order accuracy and the ability to handle complex orders, further solidifying Shift4's leadership in restaurant technology.
See More
Jared Isaacman Acquires 388,500 Shares of Shift4 Payments
- Scale of Acquisition: Jared Isaacman's acquisition of 388,500 shares of Shift4 Payments on May 11 and 12, 2026, valued at approximately $15.9 million, reflects his confidence in the company’s future, particularly after a significant 54.7% decline in stock price.
- Historical Trading Record: This purchase marks Isaacman's largest single transaction to date, increasing his direct ownership to 1,787,455 shares and indirect holdings to 20,922,737 shares, indicating a substantial capital redeployment that may influence investor confidence moving forward.
- Company Financial Performance: Shift4 Payments reported over $1.1 billion in revenue for Q1 2026, a 32% year-over-year increase, although rising interest expenses prevented profit growth; this rapid expansion suggests resilience in a challenging fintech landscape.
- Market Reaction and Outlook: Despite a nearly 55% drop in Shift4 Payments' stock over the past year, Isaacman's purchase could signal positive future prospects for the company, especially as investors remain hopeful about its performance under new leadership following his departure as CEO.
See More
Former CEO Acquires $15.94 Million in Shift4 Shares
- Share Acquisition: Former CEO Jared Isaacman acquired 388,500 shares of Shift4 Payments in multiple open-market transactions on May 11 and 12, 2026, for a total transaction value of approximately $15.94 million at an average price of $41.04 per share, indicating his confidence in the company's future prospects.
- Ownership Changes: Following this acquisition, Isaacman's direct holdings increased to 1,787,455 shares, while his indirect holdings through Rook and trusts reached 20,922,737 shares, maintaining a 1.74% ownership stake, which reflects his ongoing commitment to corporate governance.
- Financial Performance Insight: Shift4 Payments reported over $1.1 billion in revenue for Q1 2026, marking a 32% year-over-year increase; however, profits did not rise due to soaring interest expenses, yet the company's rapid expansion stands out amid slower growth in larger fintech firms.
- Market Signal Interpretation: Despite a nearly 55% decline in Shift4's stock price over the past year, Isaacman's share purchase may signal his confidence in the company's future, prompting investors to consider potential growth opportunities under new leadership.
See More
ShawSpring Fully Exits Shift4 Payments Stake
- Share Sale Details: ShawSpring Partners sold 1,148,861 shares of Shift4 Payments in Q1 2026, with an estimated transaction value of $63.41 million, indicating a significant loss of confidence in the company.
- AUM Impact: This sale represented a 23.7% decrease in 13F reportable AUM, with a decline of $72.34 million in position value at quarter-end, reflecting growing market concerns regarding Shift4.
- Company Performance Overview: Despite Shift4's total revenue increasing by 32% to $1.1 billion and EBITDA rising by 63% to $183 million, management acknowledged that market volatility has negatively impacted investor confidence.
- Market Outlook Analysis: Shift4 Payments' stock has dropped approximately 50% over the past year, raising investor concerns about growth and competitive pressures, even as the company retains potential in transaction processing and software adoption.
See More
Investment Comparison: Shift4 Payments vs PayPal
- Shift4 Growth Potential: Shift4 Payments reported nearly $4.2 billion in revenue for FY 2025, marking a 25.5% increase year-over-year, with a net income of approximately $119 million and a net margin of about 2.8%, indicating strong growth potential in the hospitality and entertainment sectors.
- PayPal Market Position: PayPal achieved roughly $33.2 billion in revenue for FY 2025, a 4.3% increase from the previous year, with a net income of around $5.2 billion and a net margin close to 15.8%, solidifying its leadership in the global payments market.
- Risks and Competition: Shift4 Payments faces intense competition from players like Adyen and Block, and its debt-to-equity ratio of 3.2x may limit capital flexibility during economic downturns, while PayPal continues to navigate significant legal scrutiny despite the dismissal of some securities fraud class actions.
- Valuation Comparison: With a forward P/E ratio of 6.5x, Shift4 Payments appears more attractively priced relative to PayPal's 8.2x, highlighting its relative advantage in future earnings expectations, particularly in the context of ongoing acquisitions and market expansion.
See More
Comparing Growth Potential: Shift4 Payments vs PayPal
- Revenue Growth Comparison: Shift4 Payments reported nearly $4.2 billion in revenue for FY 2025, marking a 25.5% increase, while PayPal's revenue reached $33.2 billion with a 4.3% growth, indicating Shift4's robust growth potential in niche markets.
- Profitability Analysis: Shift4's net income was approximately $119 million with a net margin of 2.8%, whereas PayPal achieved a net income of $5.2 billion and a net margin of 15.8%, highlighting PayPal's superior profitability.
- Debt and Liquidity Status: Shift4's debt-to-equity ratio stands at 3.2x, indicating high financial leverage, while PayPal maintains a much lower ratio of 0.5x and a current ratio of 1.3, showcasing its stronger short-term debt coverage capability.
- Market Competition and Risks: Shift4 faces intense competition from companies like Adyen and Block, and its reliance on complex IT systems and AI tools increases vulnerability to cyberattacks and regulatory risks, while PayPal contends with significant legal scrutiny, particularly regarding consumer protection.
See More
Loman AI Partners with Shift4 to Boost Restaurant Revenue
- Efficiency Boost: The partnership between Loman AI and Shift4 enables restaurants to achieve 100% call answering through its voice AI platform, significantly enhancing operational efficiency and customer satisfaction while helping restaurants capture previously missed revenue.
- Order Capture Growth: Restaurants using Loman AI typically experience a 20-25% increase in order capture rates, which not only mitigates losses from unanswered calls but also raises average order values through AI-driven upselling, resulting in tens of thousands in annual savings.
- Customer Experience Improvement: The instant response and zero hold times provided by Loman AI greatly enhance customer satisfaction, allowing restaurants to better meet customer needs and thereby strengthen customer loyalty and market competitiveness.
- Technological Integration Advantage: Loman AI is purpose-built for the restaurant industry and trained on tens of millions of real guest interactions, ensuring best-in-class order accuracy and the ability to handle complex orders, further solidifying Shift4's leadership in restaurant technology.
See More
Jared Isaacman Acquires 388,500 Shares of Shift4 Payments
- Scale of Acquisition: Jared Isaacman's acquisition of 388,500 shares of Shift4 Payments on May 11 and 12, 2026, valued at approximately $15.9 million, reflects his confidence in the company’s future, particularly after a significant 54.7% decline in stock price.
- Historical Trading Record: This purchase marks Isaacman's largest single transaction to date, increasing his direct ownership to 1,787,455 shares and indirect holdings to 20,922,737 shares, indicating a substantial capital redeployment that may influence investor confidence moving forward.
- Company Financial Performance: Shift4 Payments reported over $1.1 billion in revenue for Q1 2026, a 32% year-over-year increase, although rising interest expenses prevented profit growth; this rapid expansion suggests resilience in a challenging fintech landscape.
- Market Reaction and Outlook: Despite a nearly 55% drop in Shift4 Payments' stock over the past year, Isaacman's purchase could signal positive future prospects for the company, especially as investors remain hopeful about its performance under new leadership following his departure as CEO.
See More
Former CEO Acquires $15.94 Million in Shift4 Shares
- Share Acquisition: Former CEO Jared Isaacman acquired 388,500 shares of Shift4 Payments in multiple open-market transactions on May 11 and 12, 2026, for a total transaction value of approximately $15.94 million at an average price of $41.04 per share, indicating his confidence in the company's future prospects.
- Ownership Changes: Following this acquisition, Isaacman's direct holdings increased to 1,787,455 shares, while his indirect holdings through Rook and trusts reached 20,922,737 shares, maintaining a 1.74% ownership stake, which reflects his ongoing commitment to corporate governance.
- Financial Performance Insight: Shift4 Payments reported over $1.1 billion in revenue for Q1 2026, marking a 32% year-over-year increase; however, profits did not rise due to soaring interest expenses, yet the company's rapid expansion stands out amid slower growth in larger fintech firms.
- Market Signal Interpretation: Despite a nearly 55% decline in Shift4's stock price over the past year, Isaacman's share purchase may signal his confidence in the company's future, prompting investors to consider potential growth opportunities under new leadership.
See More
ShawSpring Fully Exits Shift4 Payments Stake
- Share Sale Details: ShawSpring Partners sold 1,148,861 shares of Shift4 Payments in Q1 2026, with an estimated transaction value of $63.41 million, indicating a significant loss of confidence in the company.
- AUM Impact: This sale represented a 23.7% decrease in 13F reportable AUM, with a decline of $72.34 million in position value at quarter-end, reflecting growing market concerns regarding Shift4.
- Company Performance Overview: Despite Shift4's total revenue increasing by 32% to $1.1 billion and EBITDA rising by 63% to $183 million, management acknowledged that market volatility has negatively impacted investor confidence.
- Market Outlook Analysis: Shift4 Payments' stock has dropped approximately 50% over the past year, raising investor concerns about growth and competitive pressures, even as the company retains potential in transaction processing and software adoption.
See More
