Home > Comparison > Technology > CPAY vs GEN
The strategic rivalry between Corpay, Inc. and Gen Digital Inc. shapes the evolving landscape of the technology sector. Corpay operates as a capital-intensive payments infrastructure provider with global reach, while Gen Digital focuses on high-margin cybersecurity software for consumers worldwide. This head-to-head competition reflects a broader contrast between infrastructure scale and subscription-driven growth. This analysis aims to identify which corporate model delivers superior risk-adjusted returns for a diversified investment portfolio.
Table of contents
Companies Overview
Corpay, Inc. and Gen Digital Inc. lead key niches in the software infrastructure sector with distinct market influences.
Corpay, Inc.: Payments Infrastructure Specialist
Corpay, Inc. dominates vehicle and corporate payments management across multiple countries. It generates revenue through solutions like fuel cards, toll payments, accounts payable automation, and lodging payments for business travelers. In 2026, Corpay focuses strategically on expanding cross-border payment solutions and enhancing prepaid card offerings, reinforcing its stronghold in business expense management.
Gen Digital Inc.: Cyber Safety Pioneer
Gen Digital Inc. commands the consumer cybersecurity market with its Norton 360 platform and identity theft protection services. Its revenue stems from subscriptions protecting devices against malware and online threats globally. The company’s 2026 strategy emphasizes comprehensive cyber safety integration and expanding privacy solutions like VPNs and social media monitoring to safeguard digital identities.
Strategic Collision: Similarities & Divergences
Both companies operate in software infrastructure but pursue divergent philosophies: Corpay builds a closed ecosystem around payment services, while Gen Digital invests in an open, multi-platform cybersecurity suite. Their primary battle lies in securing client trust—Corpay in financial transaction security, Gen in personal data protection. These differences create distinct investment profiles: steady B2B payment flows versus subscription-driven consumer tech growth.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Corpay, Inc. (CPAY) | Gen Digital Inc. (GEN) |
|---|---|---|
| Revenue | 4.53B | 3.94B |
| Cost of Revenue | 1.36B | 776M |
| Operating Expenses | 1.21B | 1.55B |
| Gross Profit | 3.17B | 3.16B |
| EBITDA | 2.34B | 2.03B |
| EBIT | 1.95B | 1.61B |
| Interest Expense | 404M | 578M |
| Net Income | 1.07B | 643M |
| EPS | 15.25 | 1.04 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals each company’s true operational efficiency and profitability trends over recent years.
Corpay, Inc. Analysis
Corpay’s revenue climbed steadily from 2.8B in 2021 to 4.5B in 2025, demonstrating strong top-line momentum. Gross margins remain robust near 70%, while net margins hold a healthy 23.6%. Despite a minor net margin dip in 2025, Corpay’s operating efficiency and EPS growth of 7.6% signal solid financial discipline and expanding profitability.
Gen Digital Inc. Analysis
Gen’s revenue grew from 2.6B in 2021 to 3.9B in 2025, showing moderate but consistent gains. Gross margin exceeds 80%, reflecting excellent cost control, yet higher interest expense pressures net margin to 16.3%. The company posted a strong 44% EBIT increase in 2025, highlighting improving operational leverage and earnings momentum despite net margin volatility.
Margin Strength vs. Earnings Momentum
Corpay leads with superior net margin and consistent EPS growth, underscoring efficient capital allocation. Gen boasts higher gross margins and a remarkable EBIT surge but struggles with interest costs and net margin compression. For investors, Corpay’s balanced margin quality and steady profitability profile offer a more reliable earnings foundation.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared:
| Ratios | Corpay, Inc. (CPAY) | Gen Digital Inc. (GEN) |
|---|---|---|
| ROE | 27.5% | 28.3% |
| ROIC | 8.8% | 7.8% |
| P/E | 19.7 | 25.4 |
| P/B | 5.4 | 7.2 |
| Current Ratio | 1.0 | 0.51 |
| Quick Ratio | 1.0 | 0.51 |
| D/E | 2.58 | 3.66 |
| Debt-to-Assets | 38% | 54% |
| Interest Coverage | 4.83 | 2.79 |
| Asset Turnover | 0.17 | 0.25 |
| Fixed Asset Turnover | 9.59 | 36.1 |
| Payout ratio | 0% | 49% |
| Dividend yield | 0% | 1.9% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as the company’s DNA, exposing hidden risks and signaling operational strength or weaknesses crucial for investment decisions.
Corpay, Inc.
Corpay delivers strong profitability with a 27.55% ROE and a solid 23.62% net margin, signaling operational efficiency. Its P/E ratio of 19.73 suggests a fair valuation, though a high P/B of 5.43 indicates the stock may be stretched. Corpay pays no dividends, focusing on reinvestment rather than immediate shareholder returns.
Gen Digital Inc.
Gen Digital posts a comparable ROE of 28.34% but a lower net margin at 16.34%, reflecting moderate profitability. The stock trades at a higher P/E of 25.36, marking it as relatively expensive. Gen balances this with a 1.92% dividend yield, providing tangible returns alongside growth efforts.
Valuation Discipline vs. Income Stability
Both firms show slightly unfavorable overall ratios, but Corpay offers better valuation discipline with a lower P/E and higher margin. Gen’s dividend yield adds income stability despite a stretched price. Risk-tolerant investors might prefer Corpay’s reinvestment profile, while income-seekers may lean toward Gen’s payout.
Which one offers the Superior Shareholder Reward?
I find Gen Digital Inc. (GEN) offers a more balanced shareholder reward in 2026. GEN pays a consistent dividend yield near 2%, with a payout ratio around 50%, supported by strong free cash flow coverage (99%). Corpay, Inc. (CPAY) pays no dividends but reinvests heavily in growth, with zero payout ratio. Both companies engage in share buybacks, but CPAY’s aggressive reinvestment and stable free cash flow make its model sustainable. However, GEN’s combined dividend and buyback strategy offers a more immediate and reliable total return, ideal for income-focused investors. Therefore, GEN delivers the superior total shareholder reward in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Corpay, Inc. and Gen Digital Inc., highlighting their financial strengths and valuation risks:
Both firms score identically on DCF and ROE, showing strong cash flow projections and efficient equity use. They share moderate asset returns but suffer high debt-to-equity risks, signaling leveraged balance sheets. Corpay edges Gen in P/E and P/B valuations, revealing a slightly more balanced profile. Gen relies more heavily on valuation discounts, which could imply greater risk or opportunity.
Bankruptcy Risk: Solvency Showdown
The Altman Z-Scores place both Corpay (1.59) and Gen (1.21) in the distress zone, indicating elevated bankruptcy risk under current market pressures:
Financial Health: Quality of Operations
Corpay scores a middling 5 on the Piotroski scale, signaling average financial health. Gen’s stronger 7 suggests better internal metrics and operational quality, reducing red flags for investors:
How are the two companies positioned?
This section dissects Corpay and Gen Digital’s operational DNA by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats and identify which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This comparison dissects how Corpay, Inc. and Gen Digital Inc. diversify their income streams and reveals where each company places its primary sector bets:
Corpay anchors its revenue in Payments at $2B, with Corporate Payments and Lodging contributing $1.22B and $489M respectively, showing moderate diversification. Gen Digital pivots heavily on Cyber Safety Revenues at $3.9B, dwarfing its Legacy segment at $50M, reflecting a focused cybersecurity moat but higher concentration risk. Corpay’s mix suggests ecosystem lock-in through payment infrastructure, while Gen Digital bets on security dominance.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Corpay, Inc. and Gen Digital Inc.:
Corpay Strengths
- Strong net margin at 23.62%
- Favorable ROE of 27.55%
- Diversified payments and lodging revenues
- Solid global presence with strong US, UK, Brazil sales
- Favorable fixed asset turnover at 9.59
Gen Strengths
- Favorable ROE of 28.34%
- Large Cyber Safety revenue stream of 3.9B USD
- Broad geographic exposure including Americas, EMEA, Asia Pacific
- Favorable fixed asset turnover at 36.1
- Dividend yield of 1.92% provides income potential
Corpay Weaknesses
- Low current ratio at 0.98 signals liquidity risk
- High debt-to-equity at 2.58
- Unfavorable PB ratio at 5.43
- Unfavorable asset turnover at 0.17
- No dividend yield
- Slightly unfavorable global ratios overall
Gen Weaknesses
- Very low current and quick ratios at 0.51 indicate liquidity stress
- High debt-to-equity at 3.66 and debt-to-assets at 53.66%
- Unfavorable PB and PE ratios
- Unfavorable asset turnover at 0.25
- Slightly unfavorable global ratios overall
Both companies show favorable returns on equity and strong asset utilization in fixed assets, indicating operational efficiency. However, liquidity and leverage concerns weigh on both, posing risks that could impact financial flexibility and strategic investments.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat shields long-term profits from relentless competitive pressure. Without it, earnings erode quickly, leaving only fleeting gains:
Corpay, Inc.: Cost Advantage Backbone
Corpay leverages a cost advantage through its integrated vehicle and corporate payment solutions, sustaining a high 43% EBIT margin. While ROIC exceeds WACC by 2.5%, the gradual decline signals emerging margin pressures. Expansion into new geographic markets in 2026 could deepen its moat if operational efficiencies scale effectively.
Gen Digital Inc.: Intangible Asset Fortress
Gen Digital’s moat rests on intangible assets—strong brand recognition and subscription-based cybersecurity services. Despite robust gross margins above 80%, its ROIC barely matches WACC and declines steeply, reflecting heavy investment and margin pressure. The company’s push into AI-driven cyber safety in 2026 could disrupt markets but risks further margin dilution.
Cost Efficiency vs. Brand Equity: The Moat Face-off
Corpay’s cost advantage yields a wider economic moat, creating tangible value above its cost of capital. Gen Digital’s intangible moat is under strain, showing value destruction amid rising costs. Corpay stands better equipped to defend market share through operational leverage and geographic diversification.
Which stock offers better returns?
Over the past 12 months, Corpay, Inc. and Gen Digital Inc. exhibited distinct bullish trends with varying acceleration and volume dynamics shaping their stock price movements.
Trend Comparison
Corpay, Inc.’s stock rose 19.8% over the past year, showing a bullish trend with acceleration. The price ranged between 250 and 381, with high volatility (std dev 31.25).
Gen Digital Inc. gained 14.06% over the same period, also bullish but with deceleration. It showed a narrower price range (20.03 to 31.58) and low volatility (std dev 2.49).
Corpay’s stronger price appreciation and accelerating trend outperform Gen’s more modest gains and recent bearish shift, delivering higher market returns in this timeframe.
Target Prices
Analysts present a cautiously optimistic consensus on target prices for Corpay, Inc. and Gen Digital Inc.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Corpay, Inc. | 300 | 390 | 359.33 |
| Gen Digital Inc. | 31 | 32 | 31.67 |
The target consensus for Corpay suggests a moderate upside from its current price of 354.19, indicating room for growth within its sector. Gen Digital’s consensus target significantly exceeds its current 24.25 price, reflecting strong analyst confidence despite recent market volatility.
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How do institutions grade them?
Corpay, Inc. Grades
The following table summarizes recent institutional grades for Corpay, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | maintain | Neutral | 2026-02-06 |
| JP Morgan | maintain | Overweight | 2026-02-05 |
| RBC Capital | maintain | Sector Perform | 2026-02-05 |
| Morgan Stanley | maintain | Overweight | 2026-02-05 |
| Morgan Stanley | upgrade | Overweight | 2026-01-26 |
| Oppenheimer | maintain | Outperform | 2026-01-12 |
| Oppenheimer | upgrade | Outperform | 2025-12-05 |
| UBS | maintain | Neutral | 2025-11-06 |
| RBC Capital | maintain | Sector Perform | 2025-11-06 |
| JP Morgan | maintain | Overweight | 2025-11-06 |
Gen Digital Inc. Grades
This table presents recent institutional grades for Gen Digital Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Equal Weight | 2026-02-06 |
| Evercore ISI Group | maintain | Outperform | 2025-11-07 |
| RBC Capital | maintain | Sector Perform | 2025-11-07 |
| Morgan Stanley | maintain | Equal Weight | 2025-09-02 |
| Barclays | maintain | Equal Weight | 2025-08-08 |
| Wells Fargo | maintain | Overweight | 2025-08-08 |
| RBC Capital | maintain | Sector Perform | 2025-08-08 |
| Barclays | maintain | Equal Weight | 2025-07-14 |
| RBC Capital | maintain | Sector Perform | 2025-05-07 |
| Morgan Stanley | maintain | Equal Weight | 2025-04-16 |
Which company has the best grades?
Corpay, Inc. holds stronger recent grades, including multiple Overweight and Outperform ratings. Gen Digital Inc. mostly receives Equal Weight and Sector Perform grades. This suggests Corpay may currently enjoy more institutional confidence, potentially influencing investor interest.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Corpay, Inc.
- Operates in global payments with diversified B2B and consumer segments, facing competition in fintech innovation and cross-border solutions.
Gen Digital Inc.
- Competes in cybersecurity with subscription models, battling rapid technology shifts and aggressive rivals in consumer and enterprise sectors.
2. Capital Structure & Debt
Corpay, Inc.
- High debt-to-equity ratio (2.58) signals leverage risk, though interest coverage (4.83) remains moderate.
Gen Digital Inc.
- Even higher leverage (3.66 D/E) and weaker interest coverage (2.78) increase financial vulnerability amid rising rates.
3. Stock Volatility
Corpay, Inc.
- Beta of 0.808 implies lower volatility versus market; price range stable between $253-$387.
Gen Digital Inc.
- Beta at 1.1 suggests higher volatility; wider price swings from $22 to $32 reflect market sensitivity.
4. Regulatory & Legal
Corpay, Inc.
- Payment processing faces compliance with evolving financial regulations and data security mandates globally.
Gen Digital Inc.
- Cybersecurity firm exposed to privacy laws, data breach liabilities, and increasing regulatory scrutiny in multiple jurisdictions.
5. Supply Chain & Operations
Corpay, Inc.
- Operational risk moderate; service delivery depends on tech infrastructure and third-party network stability.
Gen Digital Inc.
- Relies on software development and cloud infrastructure; disruption risks from cyber threats or tech failures remain salient.
6. ESG & Climate Transition
Corpay, Inc.
- Moderate ESG focus; emissions footprint linked to data centers and vehicle-related services.
Gen Digital Inc.
- Stronger emphasis on data privacy and governance; climate impact less direct but increasingly scrutinized by investors.
7. Geopolitical Exposure
Corpay, Inc.
- Revenue spread across US, Brazil, UK, and international markets exposes to currency and geopolitical risks.
Gen Digital Inc.
- Global footprint including North America, Europe, Asia-Pacific increases exposure to trade tensions and regulatory fragmentation.
Which company shows a better risk-adjusted profile?
Corpay’s most impactful risk is its high leverage combined with a borderline current ratio, signaling liquidity stress. Gen Digital’s critical risk lies in even higher debt levels and weaker liquidity, amplified by cybersecurity sector volatility. Despite both showing slightly unfavorable financial ratios, Corpay’s lower beta and better interest coverage suggest a marginally better risk-adjusted profile. The recent rise in Corpay’s stock price (+5.7%) versus Gen’s higher volatility (+8.1% gain but wider swings) further justifies my caution on Gen’s risk exposure.
Final Verdict: Which stock to choose?
Corpay, Inc. (CPAY) shines with its operational efficiency and robust cash generation, sustaining value creation despite a slight decline in profitability. Its leverage and liquidity ratios warrant attention as points of vigilance. CPAY suits aggressive growth portfolios that can tolerate some financial risk for potential upside.
Gen Digital Inc. (GEN) offers a strategic moat through its intangible assets and consistent recurring revenues, providing a safety cushion compared to CPAY’s profile. However, its declining ROIC and higher leverage pose cautionary flags. GEN fits GARP portfolios that seek growth with a relatively steadier risk profile.
If you prioritize operational efficiency and value creation amid financial leverage, CPAY is the compelling choice due to its superior cash flow generation and improving stock momentum. However, if you seek a moat built on intangible assets with moderate growth and better relative stability, GEN offers a safer, though less dynamic, investment scenario.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Corpay, Inc. and Gen Digital Inc. to enhance your investment decisions:
