Comprehensive Stock Comparison
Compare American Express Company (AXP) vs PayPal Holdings, Inc. (PYPL) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
Selected Stocks
Add up to 10 tickers. Use presets or search to get started.
Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AXP | 10.1% revenue growth vs PYPL's 4.8% |
| Value | PYPL | Lower P/E (8.7x vs 17.6x), PEG 0.98 vs 1.48 |
| Quality / Margins | PYPL | 15.7% net margin vs AXP's 13.7% |
| Stability / Safety | PYPL | Beta 1.30 vs AXP's 1.35, lower leverage |
| Dividends | AXP | 0.9% yield, 14-year raise streak, vs PYPL's 0.3% |
| Momentum (1Y) | AXP | +3.7% vs PYPL's -34.8% |
| Efficiency (ROA) | PYPL | 6.5% ROA vs AXP's 3.5%, ROIC 16.3% vs 12.2% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
American Express is a global payments and financial services company that issues charge and credit cards to consumers and businesses. It generates revenue primarily from discount fees charged to merchants — typically 2-3% of transaction value — and cardmember fees, with additional income from interest on revolving balances and travel services. Its key competitive advantage is its premium brand positioning and closed-loop network — which allows it to control both card issuance and merchant acceptance while collecting rich transaction data.
PayPal operates a global digital payments platform that enables online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. It generates revenue primarily from transaction fees — taking a percentage of each payment processed — with additional income from value-added services like PayPal Credit and merchant solutions. Its competitive advantage lies in its massive two-sided network of over 400 million active accounts and merchants, creating powerful network effects that make it difficult for competitors to displace.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
PYPL leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). AXP leads in 2 (Total Returns, Analyst Outlook). 1 tied.
Financial Metrics (TTM)
AXP is the larger business by revenue, generating $74.2B annually — 2.2x PYPL's $33.3B. Profitability is closely matched — net margins range from 15.7% (PYPL) to 13.7% (AXP).
| Metric | AXPAmerican Express … | PYPLPayPal Holdings, … |
|---|---|---|
| RevenueTrailing 12 months | $74.2B | $33.3B |
| EBITDAEarnings before interest/tax | $15.2B | $7.2B |
| Net IncomeAfter-tax profit | $10.5B | $5.2B |
| Free Cash FlowCash after capex | $18.9B | $5.6B |
| Gross MarginGross profit ÷ Revenue | +81.9% | +47.0% |
| Operating MarginEBIT ÷ Revenue | +17.4% | +19.7% |
| Net MarginNet income ÷ Revenue | +13.7% | +15.7% |
| FCF MarginFCF ÷ Revenue | +16.4% | +16.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +18.6% | +37.8% |
Valuation Metrics
At 8.5x trailing earnings, PYPL trades at a 61% valuation discount to AXP's 22.0x P/E. Adjusting for growth (PEG ratio), PYPL offers better value at 0.96x vs AXP's 1.85x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | AXPAmerican Express … | PYPLPayPal Holdings, … |
|---|---|---|
| Market CapShares × price | $212.8B | $42.5B |
| Enterprise ValueMkt cap + debt − cash | $223.4B | $44.5B |
| Trailing P/EPrice ÷ TTM EPS | 22.03x | 8.54x |
| Forward P/EPrice ÷ next-FY EPS est. | 17.58x | 8.68x |
| PEG RatioP/E ÷ EPS growth rate | 1.85x | 0.96x |
| EV / EBITDAEnterprise value multiple | 15.33x | 5.90x |
| Price / SalesMarket cap ÷ Revenue | 2.87x | 1.28x |
| Price / BookPrice ÷ Book value/share | 7.28x | 2.21x |
| Price / FCFMarket cap ÷ FCF | 17.53x | 7.64x |
Profitability & Efficiency
AXP delivers a 32.5% return on equity — every $100 of shareholder capital generates $33 in annual profit, vs $26 for PYPL. PYPL carries lower financial leverage with a 0.49x debt-to-equity ratio, signaling a more conservative balance sheet compared to AXP's 1.69x. On the Piotroski fundamental quality scale (0–9), PYPL scores 8/9 vs AXP's 7/9, reflecting strong financial health.
| Metric | AXPAmerican Express … | PYPLPayPal Holdings, … |
|---|---|---|
| ROE (TTM)Return on equity | +32.5% | +25.8% |
| ROA (TTM)Return on assets | +3.5% | +6.5% |
| ROICReturn on invested capital | +12.2% | +16.3% |
| ROCEReturn on capital employed | +11.2% | +19.6% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 8 |
| Debt / EquityFinancial leverage | 1.69x | 0.49x |
| Net DebtTotal debt minus cash | $10.5B | $1.9B |
| Cash & Equiv.Liquid assets | $40.6B | $8.0B |
| Total DebtShort + long-term debt | $51.1B | $10.0B |
| Interest CoverageEBIT ÷ Interest expense | 1.64x | 12.25x |
Total Returns (with DRIP)
A $10,000 investment in AXP five years ago would be worth $23,155 today (with dividends reinvested), compared to $1,694 for PYPL. Over the past 12 months, AXP leads with a +3.7% total return vs PYPL's -34.8%. The 3-year compound annual growth rate (CAGR) favors AXP at 22.2% vs PYPL's -14.3% — a key indicator of consistent wealth creation.
| Metric | AXPAmerican Express … | PYPLPayPal Holdings, … |
|---|---|---|
| YTD ReturnYear-to-date | -16.9% | -20.5% |
| 1-Year ReturnPast 12 months | +3.7% | -34.8% |
| 3-Year ReturnCumulative with dividends | +82.4% | -37.0% |
| 5-Year ReturnCumulative with dividends | +131.5% | -83.1% |
| 10-Year ReturnCumulative with dividends | +491.2% | +21.5% |
| CAGR (3Y)Annualised 3-year return | +22.2% | -14.3% |
Risk & Volatility
PYPL is the less volatile stock with a 1.30 beta — it tends to amplify market swings less than AXP's 1.35 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. AXP currently trades 79.7% from its 52-week high vs PYPL's 58.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | AXPAmerican Express … | PYPLPayPal Holdings, … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.35x | 1.30x |
| 52-Week HighHighest price in past year | $387.49 | $79.50 |
| 52-Week LowLowest price in past year | $220.43 | $38.46 |
| % of 52W HighCurrent price vs 52-week peak | +79.7% | +58.1% |
| RSI (14)Momentum oscillator 0–100 | 42.2 | 46.2 |
| Avg Volume (50D)Average daily shares traded | 2.4M | 18.5M |
Analyst Outlook
Wall Street rates AXP as "Hold" and PYPL as "Hold". Consensus price targets imply 21.3% upside for AXP (target: $375) vs 14.8% for PYPL (target: $53). For income investors, AXP offers the higher dividend yield at 0.91% vs PYPL's 0.29%.
| Metric | AXPAmerican Express … | PYPLPayPal Holdings, … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $374.58 | $53.05 |
| # AnalystsCovering analysts | 56 | 69 |
| Dividend YieldAnnual dividend ÷ price | +0.9% | +0.3% |
| Dividend StreakConsecutive years of raises | 14 | 1 |
| Dividend / ShareAnnual DPS | $2.80 | $0.13 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.8% | +14.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| American Express Co… (AXP) | 100 | 309.85 | +209.9% |
| PayPal Holdings, In… (PYPL) | 100 | 46.37 | -53.6% |
American Express Co… (AXP) returned +132% over 5 years vs PayPal Holdings, In… (PYPL)'s -83%. A $10,000 investment in AXP 5 years ago would be worth $23,155 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| American Express Co… (AXP) | $38.4B | $74.2B | +93.4% |
| PayPal Holdings, In… (PYPL) | $10.8B | $33.3B | +207.5% |
PayPal Holdings, Inc.'s revenue grew from $10.8B (2016) to $33.3B (2025) — a 13.3% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| American Express Co… (AXP) | 14.0% | 13.7% | -2.6% |
| PayPal Holdings, In… (PYPL) | 12.9% | 15.7% | +21.5% |
PayPal Holdings, Inc.'s net margin went from 13% (2016) to 16% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| American Express Co… (AXP) | 33.4 | 21.2 | -36.5% |
| PayPal Holdings, In… (PYPL) | 50.1 | 10.8 | -78.4% |
American Express Company has traded in a 12x–33x P/E range over 8 years; current trailing P/E is ~22x. PayPal Holdings, Inc. has traded in a 11x–66x P/E range over 9 years; current trailing P/E is ~9x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| American Express Co… (AXP) | 5.65 | 14.02 | +148.1% |
| PayPal Holdings, In… (PYPL) | 1.15 | 5.41 | +370.4% |
PayPal Holdings, Inc.'s EPS grew from $1.15 (2016) to $5.41 (2025) — a 19% CAGR.
Chart 6Free Cash Flow — 5 Years
American Express Company generated $12B FCF in 2024 (-7% vs 2021). PayPal Holdings, Inc. generated $6B FCF in 2025 (+14% vs 2021).
AXP vs PYPL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is AXP or PYPL a better buy right now?
PayPal Holdings, Inc. (PYPL) offers the better valuation at 8.5x trailing P/E (8.7x forward), making it the more compelling value choice. Analysts rate American Express Company (AXP) a "Hold" — based on 56 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — AXP or PYPL?
On trailing P/E, PayPal Holdings, Inc. (PYPL) is the cheapest at 8.5x versus American Express Company at 22.0x. On forward P/E, PayPal Holdings, Inc. is actually cheaper at 8.7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: PayPal Holdings, Inc. wins at 0.98x versus American Express Company's 1.48x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — AXP or PYPL?
Over the past 5 years, American Express Company (AXP) delivered a total return of +131.5%, compared to -83.1% for PayPal Holdings, Inc. (PYPL). A $10,000 investment in AXP five years ago would be worth approximately $23K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AXP returned +491.2% versus PYPL's +21.5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — AXP or PYPL?
By beta (market sensitivity over 5 years), PayPal Holdings, Inc. (PYPL) is the lower-risk stock at 1.30β versus American Express Company's 1.35β — meaning AXP is approximately 3% more volatile than PYPL relative to the S&P 500. On balance sheet safety, PayPal Holdings, Inc. (PYPL) carries a lower debt/equity ratio of 49% versus 169% for American Express Company — giving it more financial flexibility in a downturn.
05Which has better profit margins — AXP or PYPL?
PayPal Holdings, Inc. (PYPL) is the more profitable company, earning 15.7% net margin versus 13.7% for American Express Company — meaning it keeps 15.7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PYPL leads at 19.7% versus 17.4% for AXP. At the gross margin level — before operating expenses — AXP leads at 81.9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is AXP or PYPL more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, PayPal Holdings, Inc. (PYPL) is the more undervalued stock at a PEG of 0.98x versus American Express Company's 1.48x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, PayPal Holdings, Inc. (PYPL) trades at 8.7x forward P/E versus 17.6x for American Express Company — 8.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AXP: 21.3% to $374.58.
07Which pays a better dividend — AXP or PYPL?
All stocks in this comparison pay dividends. American Express Company (AXP) offers the highest yield at 0.9%, versus 0.3% for PayPal Holdings, Inc. (PYPL).
08Is AXP or PYPL better for a retirement portfolio?
For long-horizon retirement investors, American Express Company (AXP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.9% yield, +491.2% 10Y return). Both have compounded well over 10 years (AXP: +491.2%, PYPL: +21.5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between AXP and PYPL?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: AXP is a large-cap quality compounder stock; PYPL is a mid-cap deep-value stock. AXP pays a dividend while PYPL does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.