Market Comparison Analysis of Shift4 and PayPal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 30 2026
0mins
Source: Fool
- Shift4 Growth Potential: Shift4 Payments reported nearly $4.2 billion in revenue for FY 2025, reflecting a robust year-over-year growth of 25.5%, with expectations to further increase revenue by 22% to $5.1 billion in 2026, while net income is projected to nearly double to $143 million, indicating successful market positioning in the hospitality sector.
- PayPal's Market Challenges: PayPal generated $33.2 billion in revenue for FY 2025, marking a modest growth of 4.3%, but is expected to see only a 3.3% revenue increase in 2026, with net income declining to $4.7 billion, highlighting ongoing challenges in transitioning to a higher-value payment provider.
- Risks and Competition: Shift4's aggressive acquisition strategy poses integration risks and faces pressure from low-cost competitors that could impact its net margins; meanwhile, PayPal is contending with multiple class-action lawsuits and a complex global regulatory environment, which increases operational costs.
- Valuation Comparison: Shift4's forward P/E ratio stands at 8.5x, slightly higher than PayPal's 8.3x, while its P/S ratio is 1.0x, indicating relative value in the market; despite PayPal's larger revenue scale, Shift4's defensible niche in in-person payments makes it a more attractive investment choice.
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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: 51.380
Low
90.00
Averages
113.75
High
150.00
Current: 51.380
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.
Shift4 Payments Declares Dividend on Preferred Stock
- Dividend Announcement: Shift4 Payments has declared a cash dividend of $1.50 per share to be paid on August 3, 2026, to holders of record as of July 15, 2026, involving 10 million shares of 6% Series A Mandatory Convertible Preferred Stock, reflecting the company's commitment to shareholder returns.
- Board Discretion: Future quarterly dividends will be at the sole discretion of the Board of Directors, based on various factors including the company's operating results and financial condition, allowing for strategic flexibility in adjusting shareholder returns according to market conditions.
- Market Competition Risks: Shift4 faces intense competition in the global financial services and payment technology sectors, which may impact its future operational performance and dividend capacity, necessitating ongoing market vigilance to maintain competitive advantage.
- Investor Relations Transparency: The company enhances investor transparency by providing detailed information on its website and SEC filings, ensuring shareholders are kept informed about the latest developments regarding preferred stock and dividends, thereby boosting investor confidence.
See More
Market Comparison Analysis of Shift4 and PayPal
- Shift4 Growth Potential: Shift4 Payments reported nearly $4.2 billion in revenue for FY 2025, reflecting a robust year-over-year growth of 25.5%, with expectations to further increase revenue by 22% to $5.1 billion in 2026, while net income is projected to nearly double to $143 million, indicating successful market positioning in the hospitality sector.
- PayPal's Market Challenges: PayPal generated $33.2 billion in revenue for FY 2025, marking a modest growth of 4.3%, but is expected to see only a 3.3% revenue increase in 2026, with net income declining to $4.7 billion, highlighting ongoing challenges in transitioning to a higher-value payment provider.
- Risks and Competition: Shift4's aggressive acquisition strategy poses integration risks and faces pressure from low-cost competitors that could impact its net margins; meanwhile, PayPal is contending with multiple class-action lawsuits and a complex global regulatory environment, which increases operational costs.
- Valuation Comparison: Shift4's forward P/E ratio stands at 8.5x, slightly higher than PayPal's 8.3x, while its P/S ratio is 1.0x, indicating relative value in the market; despite PayPal's larger revenue scale, Shift4's defensible niche in in-person payments makes it a more attractive investment choice.
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
Shift4 Payments Declares Dividend on Preferred Stock
- Dividend Announcement: Shift4 Payments has declared a cash dividend of $1.50 per share to be paid on August 3, 2026, to holders of record as of July 15, 2026, involving 10 million shares of 6% Series A Mandatory Convertible Preferred Stock, reflecting the company's commitment to shareholder returns.
- Board Discretion: Future quarterly dividends will be at the sole discretion of the Board of Directors, based on various factors including the company's operating results and financial condition, allowing for strategic flexibility in adjusting shareholder returns according to market conditions.
- Market Competition Risks: Shift4 faces intense competition in the global financial services and payment technology sectors, which may impact its future operational performance and dividend capacity, necessitating ongoing market vigilance to maintain competitive advantage.
- Investor Relations Transparency: The company enhances investor transparency by providing detailed information on its website and SEC filings, ensuring shareholders are kept informed about the latest developments regarding preferred stock and dividends, thereby boosting investor confidence.
See More
Market Comparison Analysis of Shift4 and PayPal
- Shift4 Growth Potential: Shift4 Payments reported nearly $4.2 billion in revenue for FY 2025, reflecting a robust year-over-year growth of 25.5%, with expectations to further increase revenue by 22% to $5.1 billion in 2026, while net income is projected to nearly double to $143 million, indicating successful market positioning in the hospitality sector.
- PayPal's Market Challenges: PayPal generated $33.2 billion in revenue for FY 2025, marking a modest growth of 4.3%, but is expected to see only a 3.3% revenue increase in 2026, with net income declining to $4.7 billion, highlighting ongoing challenges in transitioning to a higher-value payment provider.
- Risks and Competition: Shift4's aggressive acquisition strategy poses integration risks and faces pressure from low-cost competitors that could impact its net margins; meanwhile, PayPal is contending with multiple class-action lawsuits and a complex global regulatory environment, which increases operational costs.
- Valuation Comparison: Shift4's forward P/E ratio stands at 8.5x, slightly higher than PayPal's 8.3x, while its P/S ratio is 1.0x, indicating relative value in the market; despite PayPal's larger revenue scale, Shift4's defensible niche in in-person payments makes it a more attractive investment choice.
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
