Comprehensive Stock Comparison
Compare Capital One Financial Corporation (COF) vs PayPal Holdings, Inc. (PYPL) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | COF | 9.0% revenue growth vs PYPL's 4.8% |
| Value | PYPL | Lower P/E (8.7x vs 9.7x), PEG 0.98 vs 10.08 |
| Quality / Margins | PYPL | 15.7% net margin vs COF's 8.8% |
| Stability / Safety | PYPL | Beta 1.30 vs COF's 1.53, lower leverage |
| Dividends | COF | 1.2% yield, 2-year raise streak, vs PYPL's 0.3% |
| Momentum (1Y) | COF | -1.1% vs PYPL's -34.8% |
| Efficiency (ROA) | PYPL | 6.5% ROA vs COF's 0.2%, ROIC 16.3% vs 4.1% |
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
Capital One is a diversified financial services company that operates primarily as a credit card issuer and consumer bank. It generates revenue through three main segments: credit card interest and fees (its largest segment), consumer banking services, and commercial banking operations. The company's key advantage lies in its sophisticated data analytics and technology platform—which enables targeted marketing and risk assessment—coupled with its direct banking model that reduces physical branch costs.
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). COF leads in 2 (Total Returns, Analyst Outlook). 1 tied.
Financial Metrics (TTM)
COF is the larger business by revenue, generating $53.9B annually — 1.6x PYPL's $33.3B. PYPL is the more profitable business, keeping 15.7% of every revenue dollar as net income compared to COF's 8.8%.
| Metric | COFCapital One Finan… | PYPLPayPal Holdings, … |
|---|---|---|
| RevenueTrailing 12 months | $53.9B | $33.3B |
| EBITDAEarnings before interest/tax | $6.1B | $7.2B |
| Net IncomeAfter-tax profit | $1.4B | $5.2B |
| Free Cash FlowCash after capex | $20.8B | $5.6B |
| Gross MarginGross profit ÷ Revenue | +50.8% | +47.0% |
| Operating MarginEBIT ÷ Revenue | +11.0% | +19.7% |
| Net MarginNet income ÷ Revenue | +8.8% | +15.7% |
| FCF MarginFCF ÷ Revenue | +31.4% | +16.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +9.5% | +37.8% |
Valuation Metrics
At 8.5x trailing earnings, PYPL trades at a 49% valuation discount to COF's 16.9x P/E. Adjusting for growth (PEG ratio), PYPL offers better value at 0.96x vs COF's 10.08x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | COFCapital One Finan… | PYPLPayPal Holdings, … |
|---|---|---|
| Market CapShares × price | $124.4B | $42.5B |
| Enterprise ValueMkt cap + debt − cash | $126.7B | $44.5B |
| Trailing P/EPrice ÷ TTM EPS | 16.88x | 8.54x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.67x | 8.68x |
| PEG RatioP/E ÷ EPS growth rate | 10.08x | 0.96x |
| EV / EBITDAEnterprise value multiple | 13.85x | 5.90x |
| Price / SalesMarket cap ÷ Revenue | 2.31x | 1.28x |
| Price / BookPrice ÷ Book value/share | 1.23x | 2.21x |
| Price / FCFMarket cap ÷ FCF | 7.34x | 7.64x |
Profitability & Efficiency
PYPL delivers a 25.8% return on equity — every $100 of shareholder capital generates $26 in annual profit, vs $1 for COF. PYPL carries lower financial leverage with a 0.49x debt-to-equity ratio, signaling a more conservative balance sheet compared to COF's 0.75x. On the Piotroski fundamental quality scale (0–9), PYPL scores 8/9 vs COF's 5/9, reflecting strong financial health.
| Metric | COFCapital One Finan… | PYPLPayPal Holdings, … |
|---|---|---|
| ROE (TTM)Return on equity | +1.2% | +25.8% |
| ROA (TTM)Return on assets | +0.2% | +6.5% |
| ROICReturn on invested capital | +4.1% | +16.3% |
| ROCEReturn on capital employed | +4.6% | +19.6% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 8 |
| Debt / EquityFinancial leverage | 0.75x | 0.49x |
| Net DebtTotal debt minus cash | $2.3B | $1.9B |
| Cash & Equiv.Liquid assets | $43.2B | $8.0B |
| Total DebtShort + long-term debt | $45.6B | $10.0B |
| Interest CoverageEBIT ÷ Interest expense | 0.11x | 12.25x |
Total Returns (with DRIP)
A $10,000 investment in COF five years ago would be worth $16,819 today (with dividends reinvested), compared to $1,694 for PYPL. Over the past 12 months, COF leads with a -1.1% total return vs PYPL's -34.8%. The 3-year compound annual growth rate (CAGR) favors COF at 23.1% vs PYPL's -14.3% — a key indicator of consistent wealth creation.
| Metric | COFCapital One Finan… | PYPLPayPal Holdings, … |
|---|---|---|
| YTD ReturnYear-to-date | -20.8% | -20.5% |
| 1-Year ReturnPast 12 months | -1.1% | -34.8% |
| 3-Year ReturnCumulative with dividends | +86.3% | -37.0% |
| 5-Year ReturnCumulative with dividends | +68.2% | -83.1% |
| 10-Year ReturnCumulative with dividends | +228.4% | +21.5% |
| CAGR (3Y)Annualised 3-year return | +23.1% | -14.3% |
Risk & Volatility
PYPL is the less volatile stock with a 1.30 beta — it tends to amplify market swings less than COF's 1.53 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. COF currently trades 75.4% from its 52-week high vs PYPL's 58.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | COFCapital One Finan… | PYPLPayPal Holdings, … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.53x | 1.30x |
| 52-Week HighHighest price in past year | $259.64 | $79.50 |
| 52-Week LowLowest price in past year | $143.22 | $38.46 |
| % of 52W HighCurrent price vs 52-week peak | +75.4% | +58.1% |
| RSI (14)Momentum oscillator 0–100 | 45.1 | 46.2 |
| Avg Volume (50D)Average daily shares traded | 4.5M | 18.5M |
Analyst Outlook
Wall Street rates COF as "Buy" and PYPL as "Hold". Consensus price targets imply 39.9% upside for COF (target: $274) vs 14.8% for PYPL (target: $53). For income investors, COF offers the higher dividend yield at 1.24% vs PYPL's 0.29%.
| Metric | COFCapital One Finan… | PYPLPayPal Holdings, … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $273.62 | $53.05 |
| # AnalystsCovering analysts | 56 | 69 |
| Dividend YieldAnnual dividend ÷ price | +1.2% | +0.3% |
| Dividend StreakConsecutive years of raises | 2 | 1 |
| Dividend / ShareAnnual DPS | $2.43 | $0.13 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.6% | +14.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Capital One Financi… (COF) | 100 | 253.43 | +153.4% |
| PayPal Holdings, In… (PYPL) | 100 | 48.46 | -51.5% |
Capital One Financi… (COF) returned +68% over 5 years vs PayPal Holdings, In… (PYPL)'s -83%. A $10,000 investment in COF 5 years ago would be worth $16,819 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Capital One Financi… (COF) | $27.5B | $53.9B | +96.0% |
| 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 |
|---|---|---|---|
| Capital One Financi… (COF) | 13.6% | 8.8% | -35.4% |
| 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 |
|---|---|---|---|
| Capital One Financi… (COF) | 28.5 | 15.4 | -46.0% |
| PayPal Holdings, In… (PYPL) | 50.1 | 10.8 | -78.4% |
Capital One Financial Corporation has traded in a 5x–29x P/E range over 8 years; current trailing P/E is ~17x. 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 |
|---|---|---|---|
| Capital One Financi… (COF) | 6.89 | 11.59 | +68.2% |
| 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
Capital One Financial Corporation generated $17B FCF in 2024 (+46% vs 2021). PayPal Holdings, Inc. generated $6B FCF in 2025 (+14% vs 2021).
COF vs PYPL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is COF 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 Capital One Financial Corporation (COF) a "Buy" — 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 — COF or PYPL?
On trailing P/E, PayPal Holdings, Inc. (PYPL) is the cheapest at 8.5x versus Capital One Financial Corporation at 16.9x. 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 Capital One Financial Corporation's 10.08x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — COF or PYPL?
Over the past 5 years, Capital One Financial Corporation (COF) delivered a total return of +68.2%, compared to -83.1% for PayPal Holdings, Inc. (PYPL). A $10,000 investment in COF five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: COF returned +228.4% 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 — COF or PYPL?
By beta (market sensitivity over 5 years), PayPal Holdings, Inc. (PYPL) is the lower-risk stock at 1.30β versus Capital One Financial Corporation's 1.53β — meaning COF is approximately 17% 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 75% for Capital One Financial Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — COF or PYPL?
PayPal Holdings, Inc. (PYPL) is the more profitable company, earning 15.7% net margin versus 8.8% for Capital One Financial Corporation — 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 11.0% for COF. At the gross margin level — before operating expenses — COF leads at 50.8%, 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 COF 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 Capital One Financial Corporation's 10.08x. 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 9.7x for Capital One Financial Corporation — 1.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for COF: 39.9% to $273.62.
07Which pays a better dividend — COF or PYPL?
All stocks in this comparison pay dividends. Capital One Financial Corporation (COF) offers the highest yield at 1.2%, versus 0.3% for PayPal Holdings, Inc. (PYPL).
08Is COF or PYPL better for a retirement portfolio?
For long-horizon retirement investors, Capital One Financial Corporation (COF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1.2% yield, +228.4% 10Y return). Both have compounded well over 10 years (COF: +228.4%, 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 COF 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. COF 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.
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