How Does PayPal Stock Stack Up Against Its Peers?
PayPal‘s stock has underperformed over the past year with a -27% return, but how does its moderate valuation stack up against rapidly scaling fintech and tech giants? A closer look reveals solid profitability, evidenced by a 19.2% LTM operating margin and an attractive 12.1x PE ratio, yet slower LTM revenue growth of 4.5% compared to peers, suggesting limited upside if competitors maintain their rapid expansion.
- V’s asset-light network model drives superior 66.4% margins versus PYPL’s 19.2%, reflecting higher operational costs in digital payments.
- PYPL’s 4.5% revenue growth trails peers, indicating market saturation and intensified competition in mature digital payment sectors.
- PYPL’s stock is down 26.8% with a 12.1 PE, reflecting investor concerns over slowing growth and competitive pressures in digital payments.
Here’s how PayPal stacks up across size, valuation, and profitability versus key peers.
| PYPL | GOOGL | AMZN | SHOP | INTU | V | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 59.7 | 3,340.7 | 2,496.4 | 189.9 | 185.5 | 427.0 |
| Revenue ($ Bil) | 32.9 | 385.5 | 670.0 | 10.7 | 18.8 | 40.0 |
| PE Ratio | 12.1 | 26.9 | 35.3 | 106.6 | 47.9 | 21.3 |
| LTM Revenue Growth | 4.5% | 13.4% | 10.9% | 30.2% | 15.6% | 11.3% |
| LTM Operating Margin | 19.2% | 32.2% | 11.4% | 15.7% | 26.2% | 66.4% |
| LTM FCF Margin | 16.9% | 19.1% | 2.0% | 17.8% | 32.3% | 53.9% |
| 12M Market Return | -26.8% | 61.0% | 15.8% | 34.6% | -3.1% | 7.3% |
For more details on PayPal, read Buy or Sell PYPL Stock. Nevertheless, individual stocks can soar or tank but one thing matters: staying invested. High Quality Portfolio helps you do that.
Revenue Growth Comparison
- EPAM Systems Stock: Strong Cash Flow Poised for a Re-Rating?
- Comcast Stock Shares $24 Bil Success With Investors
- 3M Stock Pays Out $24 Bil – Investors Take Note
- Qualcomm Stock Hits Key Support – Buying Opportunity?
- Meta Platforms Stock Near Crucial Support – Buy Signal?
- With Strong Cash Flow, Comcast Stock Poised to Rise?
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| PYPL | 4.5% | – | 6.8% | 8.2% | 8.5% |
| GOOGL | 13.4% | – | 13.9% | 8.7% | 9.8% |
| AMZN | 10.9% | – | 11.0% | 11.8% | 9.4% |
| SHOP | 30.2% | – | 25.8% | 26.1% | 21.4% |
| INTU | 15.6% | 15.6% | 13.3% | 12.9% | |
| V | 11.3% | 11.3% | 10.0% | 11.4% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| PYPL | 19.2% | – | 18.1% | 16.6% | 14.7% |
| GOOGL | 32.2% | – | 32.1% | 27.4% | 26.5% |
| AMZN | 11.4% | – | 10.8% | 6.4% | 2.4% |
| SHOP | 15.7% | – | 14.7% | 1.0% | -12.3% |
| INTU | 26.2% | 26.2% | 23.7% | 21.9% | |
| V | 66.4% | 66.4% | 67.0% | 67.2% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| PYPL | 12.1 | – | 21.2 | 16.0 | 34.0 |
| GOOGL | 26.9 | – | 23.3 | 23.9 | 19.2 |
| AMZN | 35.3 | – | 38.8 | 51.5 | -314.4 |
| SHOP | 106.6 | – | 67.9 | 756.3 | -12.7 |
| INTU | 47.9 | 45.5 | 59.1 | 45.9 | |
| V | 21.3 | 27.0 | 21.4 | 19.5 |
While peer comparison is critical, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.