Coinbase vs PayPal
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KIRA’s take AI analyst
I put Coinbase and PayPal 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 $7.2B for Coinbase, about 4.6 times as much.
- Coinbase grew revenue faster (9.4%, against 4.3%).
- Coinbase kept more of each dollar of sales as operating profit (20.0% operating margin, against 18.3%).
- Coinbase turned more of its sales into free cash flow (31.9% FCF margin, against 16.8%).
- PayPal earned a higher return on the capital invested in it (25.7%, against 14.5%).
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Coinbase
COIN
6/10
Revenue growth5-year growthOperating marginNet marginFCF marginNet debt / EBITDA
PayPal
PYPL
4/10
Return on capitalReturn on equityPiotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | COIN FY25 | PYPL FY25 |
|---|---|---|
| Size | ||
| Market cap | $42.0B | $50.6B |
| Revenue | $7.2B | $33.2B |
| Free cash flow | $2.3B | $5.6B |
| Net income | $1.3B | $5.2B |
| Growth | ||
| Revenue growth | 9.4% | 4.3% |
| 5-year growth | 41.2% | 9.1% |
| Share count change | 5.1% | −6.8% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 20.0% | 18.3% |
| Net margin | 17.6% | 15.8% |
| FCF margin | 31.9% | 16.8% |
| Return on capital | 14.5% | 25.7% |
| Return on equity | 10.1% | 25.7% |
| Balance sheet | ||
| Net debt | −$3.9B | −$418M |
| Net debt / EBITDA | −2.4x | −0.1x |
| Dividends and buybacks | $790M | $6.2B |
| Valuation & quality | ||
| P/E | — | 10.3x |
| Piotroski F-score | 4 | 7 |
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.