PayPal vs Block
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KIRA’s take AI analyst
I put PayPal and Block side by side, using each one’s latest annual report. Here is what stands out:
- PayPal is the larger business, with $33.2B of revenue in fiscal 2025 against $24.2B for Block.
- PayPal grew revenue faster (4.3%, against 0.3%).
- PayPal kept more of each dollar of sales as operating profit (18.3% operating margin, against 7.1%).
- PayPal turned more of its sales into free cash flow (16.8% FCF margin, against 10.0%).
- PayPal earned a higher return on the capital invested in it (25.7%, against 6.4%).
- Investors pay more for each dollar of Block’s earnings: a P/E of 133.1x against 10.3x for PayPal.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
PayPal
PYPL
9/10
Revenue growthOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
Block
XYZ
1/10
5-year growth
Side by side
Best in the row
| Latest fiscal year | PYPL FY25 | XYZ FY25 |
|---|---|---|
| Size | ||
| Market cap | $50.6B | $45.4B |
| Revenue | $33.2B | $24.2B |
| Free cash flow | $5.6B | $2.4B |
| Net income | $5.2B | $1.3B |
| Growth | ||
| Revenue growth | 4.3% | 0.3% |
| 5-year growth | 9.1% | 20.6% |
| Share count change | −6.8% | −2.1% |
| Profitability | ||
| Gross margin | — | 42.8% |
| Operating margin | 18.3% | 7.1% |
| Net margin | 15.8% | 5.4% |
| FCF margin | 16.8% | 10.0% |
| Return on capital | 25.7% | 6.4% |
| Return on equity | 25.7% | 6.0% |
| Balance sheet | ||
| Net debt | −$418M | $207M |
| Net debt / EBITDA | −0.1x | 0.1x |
| Dividends and buybacks | $6.2B | $2.3B |
| Valuation & quality | ||
| P/E | 10.3x | 133.1x |
| Piotroski F-score | 7 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.