Better Growth Stock: PayPal vs. Adyen

In 2018, eBay (NASDAQ: EBAY) announced it would part ways with its former subsidiary (NASDAQ: PYPL) and transition all of its digital payments to the smaller Dutch company Adyen (OTC: ADYE.Y) over the ensuing five years.

That announcement blindsided investors who had assumed eBay would remain PayPal's steadfast ally after it spun off its payments subsidiary as an independent company in 2015. But it also drove a lot of investors to take a closer look at Adyen.

Over the past five years, PayPal's stock has dropped 25% as Adyen's stock rose nearly 150%. Let's review the differences between PayPal and Adyen, why the former underperformed the latter, and if PayPal will remain the weaker overall investment.

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Source Fool.com