What Makes eBay A Better Play Than PayPal Going Forward?

eBay Inc EBAY erstwhile subsidiary Paypal Holdings Inc PYPLV makes its stock market debut on Monday. Jonathan P. Morgan, director of research at The Edge Consulting Group, was on CNBC Monday to discuss which of the two entities are a better bet for investors currently.

eBay Has More Oppurtunities

"Interestingly enough when we released our 30-page analysis to our clients, some of the larger activists and hedge funds in the market, we actually said it's worth getting into the eBay spin off pre-spin because we [see a] value in the PayPal piece," Morgan began. "Now, what we think about PayPal going forward? It is a strong growth, organic growth opportunity going forward, there is a little bit of a play for M&A going forward."

He continued, "eBay, we see a little bit more opportunity there because of the fact that because PayPal is such a high profile situation going through in the market, we've seen a lot more investors [trading] on the PayPal news versus the eBay. So, actually we think there's more upside in the eBay play being listed [and] going forward over the next couple of years."

The Split Will Help PayPal

Morgan was asked if PayPal becoming an independent company will help it compete better against players like Apple Pay. He replied, "Yes, I think, that will definitely help the company going forward. Actually interestingly enough from our 15-year global spin-off study which shows a lot of these tech companies spun-off, it shows actually once we spun-off [and] a separate entity there is around a 33 percent upside over the first couple of years going forward, life as a separate entity."