Comprehensive Stock Comparison
Compare Green Dot Corporation (GDOT) 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 | GDOT | 14.8% revenue growth vs PYPL's 4.8% |
| Value | GDOT | Lower P/E (7.8x vs 8.7x) |
| Quality / Margins | PYPL | 15.7% net margin vs GDOT's -1.5% |
| Stability / Safety | PYPL | Beta 1.30 vs GDOT's 1.36 |
| Dividends | PYPL | 0.3% yield; 1-year raise streak; GDOT pays no meaningful dividend |
| Momentum (1Y) | GDOT | +51.1% vs PYPL's -34.8% |
| Efficiency (ROA) | PYPL | 6.5% ROA vs GDOT's -0.8%, ROIC 16.3% vs -0.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Green Dot is a financial technology and banking platform that provides prepaid debit cards, checking accounts, and money movement services to consumers and businesses. It generates revenue primarily through interchange fees from card transactions, monthly account maintenance fees, and service fees from its business-to-business money processing operations. The company's key advantage is its extensive retail distribution network—with cards sold at over 100,000 retail locations—which creates significant scale and brand recognition in the prepaid financial services market.
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 2 of 6 categories (Financial Metrics, Profitability & Efficiency). GDOT leads in 1 (Valuation Metrics). 2 tied.
Financial Metrics (TTM)
PYPL is the larger business by revenue, generating $33.3B annually — 19.3x GDOT's $1.7B. PYPL is the more profitable business, keeping 15.7% of every revenue dollar as net income compared to GDOT's -1.5%.
| Metric | GDOTGreen Dot Corpora… | PYPLPayPal Holdings, … |
|---|---|---|
| RevenueTrailing 12 months | $1.7B | $33.3B |
| EBITDAEarnings before interest/tax | $139M | $7.2B |
| Net IncomeAfter-tax profit | -$47M | $5.2B |
| Free Cash FlowCash after capex | $97M | $5.6B |
| Gross MarginGross profit ÷ Revenue | +33.6% | +47.0% |
| Operating MarginEBIT ÷ Revenue | -0.1% | +19.7% |
| Net MarginNet income ÷ Revenue | -1.5% | +15.7% |
| FCF MarginFCF ÷ Revenue | +0.4% | +16.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -2.7% | +37.8% |
Valuation Metrics
| Metric | GDOTGreen Dot Corpora… | PYPLPayPal Holdings, … |
|---|---|---|
| Market CapShares × price | $641M | $42.5B |
| Enterprise ValueMkt cap + debt − cash | -$892M | $44.5B |
| Trailing P/EPrice ÷ TTM EPS | -23.12x | 8.54x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.76x | 8.68x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.96x |
| EV / EBITDAEnterprise value multiple | -10.74x | 5.90x |
| Price / SalesMarket cap ÷ Revenue | 0.37x | 1.28x |
| Price / BookPrice ÷ Book value/share | 0.71x | 2.21x |
| Price / FCFMarket cap ÷ FCF | 90.29x | 7.64x |
Profitability & Efficiency
PYPL delivers a 25.8% return on equity — every $100 of shareholder capital generates $26 in annual profit, vs $-5 for GDOT. GDOT carries lower financial leverage with a 0.07x debt-to-equity ratio, signaling a more conservative balance sheet compared to PYPL's 0.49x. On the Piotroski fundamental quality scale (0–9), PYPL scores 8/9 vs GDOT's 5/9, reflecting strong financial health.
| Metric | GDOTGreen Dot Corpora… | PYPLPayPal Holdings, … |
|---|---|---|
| ROE (TTM)Return on equity | -5.1% | +25.8% |
| ROA (TTM)Return on assets | -0.8% | +6.5% |
| ROICReturn on invested capital | -0.1% | +16.3% |
| ROCEReturn on capital employed | -0.2% | +19.6% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 8 |
| Debt / EquityFinancial leverage | 0.07x | 0.49x |
| Net DebtTotal debt minus cash | -$1.5B | $1.9B |
| Cash & Equiv.Liquid assets | $1.6B | $8.0B |
| Total DebtShort + long-term debt | $60M | $10.0B |
| Interest CoverageEBIT ÷ Interest expense | 16.56x | 12.25x |
Total Returns (with DRIP)
A $10,000 investment in GDOT five years ago would be worth $2,363 today (with dividends reinvested), compared to $1,694 for PYPL. Over the past 12 months, GDOT leads with a +51.1% total return vs PYPL's -34.8%. The 3-year compound annual growth rate (CAGR) favors PYPL at -14.3% vs GDOT's -15.2% — a key indicator of consistent wealth creation.
| Metric | GDOTGreen Dot Corpora… | PYPLPayPal Holdings, … |
|---|---|---|
| YTD ReturnYear-to-date | -8.3% | -20.5% |
| 1-Year ReturnPast 12 months | +51.1% | -34.8% |
| 3-Year ReturnCumulative with dividends | -38.9% | -37.0% |
| 5-Year ReturnCumulative with dividends | -76.4% | -83.1% |
| 10-Year ReturnCumulative with dividends | -44.0% | +21.5% |
| CAGR (3Y)Annualised 3-year return | -15.2% | -14.3% |
Risk & Volatility
PYPL is the less volatile stock with a 1.30 beta — it tends to amplify market swings less than GDOT's 1.36 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. GDOT currently trades 75.0% from its 52-week high vs PYPL's 58.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | GDOTGreen Dot Corpora… | PYPLPayPal Holdings, … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.36x | 1.30x |
| 52-Week HighHighest price in past year | $15.41 | $79.50 |
| 52-Week LowLowest price in past year | $6.12 | $38.46 |
| % of 52W HighCurrent price vs 52-week peak | +75.0% | +58.1% |
| RSI (14)Momentum oscillator 0–100 | 43.5 | 46.2 |
| Avg Volume (50D)Average daily shares traded | 584K | 18.5M |
Analyst Outlook
Wall Street rates GDOT as "Hold" and PYPL as "Hold". Consensus price targets imply 23.3% upside for GDOT (target: $14) vs 14.8% for PYPL (target: $53). PYPL is the only dividend payer here at 0.29% yield — a key consideration for income-focused portfolios.
| Metric | GDOTGreen Dot Corpora… | PYPLPayPal Holdings, … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $14.25 | $53.05 |
| # AnalystsCovering analysts | 39 | 69 |
| Dividend YieldAnnual dividend ÷ price | — | +0.3% |
| Dividend StreakConsecutive years of raises | — | 1 |
| Dividend / ShareAnnual DPS | — | $0.13 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +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 |
|---|---|---|---|
| Green Dot Corporati… (GDOT) | 100 | 35.79 | -64.2% |
| PayPal Holdings, In… (PYPL) | 100 | 46.37 | -53.6% |
Green Dot Corporati… (GDOT) returned -76% over 5 years vs PayPal Holdings, In… (PYPL)'s -83%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Green Dot Corporati… (GDOT) | $726M | $1.7B | +137.4% |
| 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 |
|---|---|---|---|
| Green Dot Corporati… (GDOT) | 5.7% | -1.5% | -127.0% |
| 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 |
|---|---|---|---|
| Green Dot Corporati… (GDOT) | 37.4 | 76.2 | +103.7% |
| PayPal Holdings, In… (PYPL) | 50.1 | 10.8 | -78.4% |
Green Dot Corporation has traded in a 12x–133x P/E range over 7 years; current trailing P/E is ~-23x. 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 |
|---|---|---|---|
| Green Dot Corporati… (GDOT) | 0.8 | -0.5 | -162.5% |
| 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
Green Dot Corporation generated $7M FCF in 2024 (-94% vs 2021). PayPal Holdings, Inc. generated $6B FCF in 2025 (+14% vs 2021).
GDOT vs PYPL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is GDOT 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 Green Dot Corporation (GDOT) a "Hold" — based on 39 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 — GDOT or PYPL?
On forward P/E, Green Dot Corporation is actually cheaper at 7.8x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — GDOT or PYPL?
Over the past 5 years, Green Dot Corporation (GDOT) delivered a total return of -76.4%, compared to -83.1% for PayPal Holdings, Inc. (PYPL). A $10,000 investment in GDOT five years ago would be worth approximately $2K today (assuming dividends reinvested). Over 10 years, the gap is even starker: PYPL returned +21.5% versus GDOT's -44.0%. 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 — GDOT or PYPL?
By beta (market sensitivity over 5 years), PayPal Holdings, Inc. (PYPL) is the lower-risk stock at 1.30β versus Green Dot Corporation's 1.36β — meaning GDOT is approximately 4% more volatile than PYPL relative to the S&P 500. On balance sheet safety, Green Dot Corporation (GDOT) carries a lower debt/equity ratio of 7% versus 49% for PayPal Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — GDOT or PYPL?
PayPal Holdings, Inc. (PYPL) is the more profitable company, earning 15.7% net margin versus -1.5% for Green Dot 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 -0.1% for GDOT. At the gross margin level — before operating expenses — PYPL leads at 47.0%, 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 GDOT or PYPL more undervalued right now?
On forward earnings alone, Green Dot Corporation (GDOT) trades at 7.8x forward P/E versus 8.7x for PayPal Holdings, Inc. — 0.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GDOT: 23.3% to $14.25.
07Which pays a better dividend — GDOT or PYPL?
In this comparison, PYPL (0.3% yield) pays a dividend. GDOT does not pay a meaningful dividend and should not be held primarily for income.
08Is GDOT or PYPL better for a retirement portfolio?
For long-horizon retirement investors, PayPal Holdings, Inc. (PYPL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Both have compounded well over 10 years (PYPL: +21.5%, GDOT: -44.0%), 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 GDOT 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: GDOT is a small-cap quality compounder stock; PYPL is a mid-cap deep-value stock. 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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