Between PayPal and Block, Which Stock Looks Set to Break Out?
Block surged 10% during the past Week. You may be tempted to buy more or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer PayPal gives you more. PayPal (PYPL) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Block (XYZ) stock, suggesting you may be better off investing in PYPL
- PYPL’s quarterly revenue growth was 7.2%, vs. XYZ’s 4.9%.
- In addition, its Last 12 Months revenue growth came in at 5.8%, ahead of XYZ’s 2.3%.
- PYPL leads on profitability over both periods – LTM margin of 18.9% and 3-year average of 18.2%.
These differences become even clearer when you look at the financials side by side. The table highlights how XYZ’s fundamentals stack up against those of PYPL on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| XYZ | PYPL | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 15.7 | 6.4 | PYPL |
| Revenue Growth | |||
| Last Quarter | 4.9% | 7.2% | PYPL |
| Last 12 Months | 2.3% | 5.8% | PYPL |
| Last 3 Year Average | 10.1% | 6.3% | XYZ |
| Operating Margins | |||
| Last 12 Months | 11.7% | 18.9% | PYPL |
| Last 3 Year Average | 7.4% | 18.2% | PYPL |
| Momentum | |||
| Last 3 Year Return | 28.3% | -25.3% | XYZ |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See detailed fundamentals on Buy or Sell PYPL Stock and Buy or Sell XYZ Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| XYZ Return | -26% | -61% | 23% | 10% | -23% | 14% | -66% | ||
| PYPL Return | -19% | -62% | -14% | 39% | -31% | -24% | -81% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 101% | <=== | |
| Monthly Win Rates [3] | |||||||||
| XYZ Win Rate | 50% | 42% | 42% | 58% | 58% | 60% | 52% | ||
| PYPL Win Rate | 50% | 25% | 58% | 58% | 50% | 20% | 44% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| XYZ Max Drawdown | -44% | -69% | -56% | -33% | -50% | -31% | -47% | ||
| PYPL Max Drawdown | -42% | -65% | -42% | -16% | -37% | -35% | -40% | ||
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | -13% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 5/29/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read PYPL Dip Buyer Analyses and XYZ Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about XYZ or PYPL? Consider a portfolio approach.
Portfolios Over Individual Stock Picks
Individual stocks are unpredictable. A smart portfolio helps you invest, limits downside shocks, and provides upside exposure.
Beating the market consistently is hard, but the Trefis High Quality (HQ) Portfolio makes it look achievable. By selecting 30 high-conviction stocks, the HQ strategy has historically outpaced the S&P 500, S&P Mid-cap, and Russell 2000. See how this curated selection delivers superior risk-adjusted returns in our detailed performance factsheet.