A number of payments companies have started embracing cryptocurrencies in the past year, starting with Bitcoin. Some of those companies have struggled in recent weeks as the rapid moves in the cryptocurrency have had large swings in how these companies are valued.
However, PayPal (PYPL) has held up more strongly than other names. That’s even as the company, along with its other division Venmo, has moved to increase its cryptocurrency trading abilities for customers in the past few months.
However, right now, the perception is that Square (SQ) is the bigger play with Bitcoin and cryptocurrency investing.
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Both companies have reported strong growth with cryptocurrencies since introducing it to their platforms. While Square still looks attractive, at these prices so does PayPal.
That’s because PayPal is the bigger retail play for online payments. Earnings are up a whopping 1,200 percent in the past year, and revenue is up 30 percent. And PayPal posts a solid 23 percent profit margin.
Action to take: There’s still upside for shares here, even after a 70 percent rally in the past year.
As shares don’t pay a dividend, traders should look for a call option. The September $300 calls, last trading for about $5.45, look like a good way to play the next trend in shares higher.
Disclosure: The author of this article has no positions in the stock mentioned here, but may make a trade on this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.