Robinhood vs PayPal
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The short version
- PayPal is the larger business, with $33.2B of revenue in fiscal 2025 against $4.5B for Robinhood, about 7.4 times as much.
- Robinhood grew revenue faster (51.6%, against 4.3%).
- Robinhood turned more of its sales into free cash flow (36.3% FCF margin, against 16.8%).
- Investors pay more for each dollar of Robinhood’s earnings: a P/E of 41.9x against 10.7x for PayPal.
| Latest fiscal year | HOOD · FY25 | PYPL · FY25 |
|---|---|---|
| Size | ||
| Market cap | $86.7B | $52.5B |
| Revenue | $4.5B | $33.2B |
| Free cash flow | $1.6B | $5.6B |
| Net income | $1.9B | $5.2B |
| Growth | ||
| Revenue growth | 51.6% | 4.3% |
| 5-year growth | 36.1% | 9.1% |
| Share count change | 1.4% | −6.8% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | — | 18.3% |
| Net margin | 42.1% | 15.8% |
| FCF margin | 36.3% | 16.8% |
| Return on capital | — | 25.7% |
| Return on equity | 22.0% | 25.7% |
| Balance sheet | ||
| Net debt | — | −$418M |
| Net debt / EBITDA | — | −0.1x |
| Dividends and buybacks | $653M | $6.2B |
| Valuation & quality | ||
| P/E | 41.9x | 10.7x |
| Piotroski F-score | — | 7 |
Revenue
FY16
HOOD —
PYPL $10.8B
FY17
HOOD —
PYPL $13.1B
FY18
HOOD —
PYPL $15.5B
FY19
HOOD $278M
PYPL $17.8B
FY20
HOOD $958M
PYPL $21.5B
FY21
HOOD $1.8B
PYPL $25.4B
FY22
HOOD $1.4B
PYPL $27.5B
FY23
HOOD $1.9B
PYPL $29.8B
FY24
HOOD $3.0B
PYPL $31.8B
FY25
HOOD $4.5B
PYPL $33.2B
HOOD
PYPL
Operating margin
FY16
HOOD —
PYPL 14.6%
FY17
HOOD —
PYPL 16.2%
FY18
HOOD —
PYPL 14.2%
FY19
HOOD —
PYPL 15.3%
FY20
HOOD —
PYPL 15.3%
FY21
HOOD —
PYPL 16.8%
FY22
HOOD —
PYPL 13.9%
FY23
HOOD —
PYPL 16.9%
FY24
HOOD —
PYPL 16.8%
FY25
HOOD —
PYPL 18.3%
HOOD
PYPL
Free cash flow
FY16
HOOD —
PYPL $2.5B
FY17
HOOD —
PYPL $1.9B
FY18
HOOD —
PYPL $4.7B
FY19
HOOD $1.3B
PYPL $3.4B
FY20
HOOD $1.9B
PYPL $5.4B
FY21
HOOD −$948M
PYPL $4.9B
FY22
HOOD −$880M
PYPL $5.1B
FY23
HOOD $1.2B
PYPL $4.2B
FY24
HOOD −$170M
PYPL $6.8B
FY25
HOOD $1.6B
PYPL $5.6B
HOOD
PYPL
Return on capital
FY16
HOOD —
PYPL —
FY17
HOOD —
PYPL —
FY18
HOOD —
PYPL —
FY19
HOOD —
PYPL 23.0%
FY20
HOOD —
PYPL 20.2%
FY21
HOOD —
PYPL 23.6%
FY22
HOOD —
PYPL 13.8%
FY23
HOOD —
PYPL 21.6%
FY24
HOOD —
PYPL 23.0%
FY25
HOOD —
PYPL 25.7%
HOOD
PYPL
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.