KLAR
Klarna Group plc
Software - Infrastructure
Market Cap$5.55B
5Y Perf.-20.3%
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Stock Comparison
KLAR vs PYPL
Revenue, margins, valuation, and 5-year total return — side by side.
PYPL
PayPal Holdings, Inc.
Financial - Credit Services
Market Cap$40.77B
5Y Perf.-28.8%
KLAR vs PYPL — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | KLAR | PYPL |
|---|---|---|
| Industry | Software - Infrastructure | Financial - Credit Services |
| Market Cap | $5.55B | $40.77B |
| Revenue (TTM) | $3.00B | $33.17B |
| Net Income (TTM) | $-279M | $5.06B |
| Gross Margin | 63.1% | 46.6% |
| Operating Margin | -8.2% | 18.3% |
| Forward P/E | 570.5x | 8.7x |
| Total Debt | $791M | $9.99B |
| Cash & Equiv. | $3.24B | $8.05B |
Quick Verdict: KLAR vs PYPL
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: PYPL leads in 6 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Klarna Group plc is the stronger pick specifically for growth and revenue expansion. This set spans 2 sectors — these stocks serve different portfolio roles, not just different price points.
KLAR
Klarna Group plc
The Growth Play
KLAR is the clearest fit if your priority is growth exposure.
- Rev growth 21.2%, EPS growth 101.0%, 3Y rev CAGR 18.1%
- 21.2% revenue growth vs PYPL's 4.3%
Best for: growth exposure
PYPL
PayPal Holdings, Inc.
The Banking Pick
PYPL carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 1 yrs, beta 1.39, yield 0.3%
- 17.4% 10Y total return vs KLAR's -67.9%
- Lower volatility, beta 1.39, Low D/E 49.3%, current ratio 1.29x
Best for: income & stability and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | KLAR | 21.2% revenue growth vs PYPL's 4.3% |
| Value | PYPL | Lower P/E (8.7x vs 570.5x) |
| Quality / Margins | PYPL | 15.8% margin vs KLAR's -9.3% |
| Stability / Safety | PYPL | Beta 1.39 vs KLAR's 2.46 |
| Dividends | PYPL | 0.3% yield; 1-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | PYPL | -32.3% vs KLAR's -67.9% |
| Efficiency (ROA) | PYPL | 6.3% ROA vs KLAR's -1.3%, ROIC 15.0% vs -218.7% |
KLAR vs PYPL — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
FY 2025
KLAR vs PYPL — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLPYPLLAGGINGKLAR
KLARKlarna Group plc
0leads
PYPLPayPal Holdings, Inc.
4leads
6 Total Categories
CATEGORYLEADERvs KLARMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
Tied
—
Valuation MetricsMultiples, price ratios, and targets
PYPL6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
PYPL6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
PYPL5/6
Risk & VolatilityBeta, volatility, and downside exposure
PYPL2/2
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
Evenly matched — KLAR and PYPL each lead in 2 of 4 comparable metrics.
Income & Cash Flow (Last 12 Months)
PYPL is the larger business by revenue, generating $33.2B annually — 11.0x KLAR's $3.0B. PYPL is the more profitable business, keeping 15.8% of every revenue dollar as net income compared to KLAR's -9.3%.
| Metric | KLARKlarna Group plc | PYPLPayPal Holdings, … |
|---|---|---|
| RevenueTrailing 12 months | $3.0B | $33.2B |
| EBITDAEarnings before interest/tax | -$109M | $6.7B |
| Net IncomeAfter-tax profit | -$279M | $5.1B |
| Free Cash FlowCash after capex | $3.2B | $5.5B |
| Gross MarginGross profit ÷ Revenue | +63.1% | +46.6% |
| Operating MarginEBIT ÷ Revenue | -8.2% | +18.3% |
| Net MarginNet income ÷ Revenue | -9.3% | +15.8% |
| FCF MarginFCF ÷ Revenue | +105.1% | +16.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | — | -6.2% |
Evenly matched — KLAR and PYPL each lead in 2 of 4 comparable metrics.
Valuation Metrics
PYPL leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 8.5x trailing earnings, PYPL trades at a 100% valuation discount to KLAR's 2197.0x P/E. On an enterprise value basis, PYPL's 6.1x EV/EBITDA is more attractive than KLAR's 45.6x.
| Metric | KLARKlarna Group plc | PYPLPayPal Holdings, … |
|---|---|---|
| Market CapShares × price | $5.6B | $40.8B |
| Enterprise ValueMkt cap + debt − cash | $3.1B | $42.7B |
| Trailing P/EPrice ÷ TTM EPS | 2197.01x | 8.54x |
| Forward P/EPrice ÷ next-FY EPS est. | 570.54x | 8.71x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.97x |
| EV / EBITDAEnterprise value multiple | 45.61x | 6.08x |
| Price / SalesMarket cap ÷ Revenue | 2.08x | 1.23x |
| Price / BookPrice ÷ Book value/share | 2.38x | 2.21x |
| Price / FCFMarket cap ÷ FCF | 10.25x | 7.33x |
PYPL leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
PYPL leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
PYPL delivers a 25.1% return on equity — every $100 of shareholder capital generates $25 in annual profit, vs $-11 for KLAR. KLAR carries lower financial leverage with a 0.35x 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 KLAR's 7/9, reflecting strong financial health.
| Metric | KLARKlarna Group plc | PYPLPayPal Holdings, … |
|---|---|---|
| ROE (TTM)Return on equity | -10.6% | +25.1% |
| ROA (TTM)Return on assets | -1.3% | +6.3% |
| ROICReturn on invested capital | -2.2% | +15.0% |
| ROCEReturn on capital employed | -3.0% | +18.1% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 8 |
| Debt / EquityFinancial leverage | 0.35x | 0.49x |
| Net DebtTotal debt minus cash | -$2.5B | $1.9B |
| Cash & Equiv.Liquid assets | $3.2B | $8.0B |
| Total DebtShort + long-term debt | $791M | $10.0B |
| Interest CoverageEBIT ÷ Interest expense | 0.15x | 19.28x |
PYPL leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
PYPL leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in KLAR five years ago would be worth $3,213 today (with dividends reinvested), compared to $1,835 for PYPL. Over the past 12 months, PYPL leads with a -32.3% total return vs KLAR's -67.9%. The 3-year compound annual growth rate (CAGR) favors PYPL at -14.9% vs KLAR's -31.5% — a key indicator of consistent wealth creation.
| Metric | KLARKlarna Group plc | PYPLPayPal Holdings, … |
|---|---|---|
| YTD ReturnYear-to-date | -48.5% | -20.3% |
| 1-Year ReturnPast 12 months | -67.9% | -32.3% |
| 3-Year ReturnCumulative with dividends | -67.9% | -38.4% |
| 5-Year ReturnCumulative with dividends | -67.9% | -81.6% |
| 10-Year ReturnCumulative with dividends | -67.9% | +17.4% |
| CAGR (3Y)Annualised 3-year return | -31.5% | -14.9% |
PYPL leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
PYPL leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
PYPL is the less volatile stock with a 1.39 beta — it tends to amplify market swings less than KLAR's 2.46 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PYPL currently trades 58.1% from its 52-week high vs KLAR's 25.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | KLARKlarna Group plc | PYPLPayPal Holdings, … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.46x | 1.39x |
| 52-Week HighHighest price in past year | $57.20 | $79.50 |
| 52-Week LowLowest price in past year | $12.06 | $38.46 |
| % of 52W HighCurrent price vs 52-week peak | +25.7% | +58.1% |
| RSI (14)Momentum oscillator 0–100 | 50.5 | 40.9 |
| Avg Volume (50D)Average daily shares traded | 5.5M | 15.4M |
PYPL leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates KLAR as "Buy" and PYPL as "Hold". Consensus price targets imply 68.7% upside for KLAR (target: $25) vs 11.8% for PYPL (target: $52). PYPL is the only dividend payer here at 0.29% yield — a key consideration for income-focused portfolios.
| Metric | KLARKlarna Group plc | PYPLPayPal Holdings, … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $24.83 | $51.67 |
| # AnalystsCovering analysts | 8 | 70 |
| Dividend YieldAnnual dividend ÷ price | — | +0.3% |
| Dividend StreakConsecutive years of raises | — | 1 |
| Dividend / ShareAnnual DPS | — | $0.13 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +14.8% |
Insufficient data to determine a leader in this category.
Key Takeaway
PYPL leads in 4 of 6 categories — strongest in Valuation Metrics and Profitability & Efficiency. 1 category is tied.
Best OverallPayPal Holdings, Inc. (PYPL)Leads 4 of 6 categories
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KLAR vs PYPL: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is KLAR or PYPL a better buy right now?
For growth investors, Klarna Group plc (KLAR) is the stronger pick with 21.
2% revenue growth year-over-year, versus 4. 3% for PayPal Holdings, Inc. (PYPL). 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 Klarna Group plc (KLAR) a "Buy" — based on 8 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 — KLAR or PYPL?
On trailing P/E, PayPal Holdings, Inc.
(PYPL) is the cheapest at 8. 5x versus Klarna Group plc at 2197. 0x. On forward P/E, PayPal Holdings, Inc. is actually cheaper at 8. 7x.
03Which is the better long-term investment — KLAR or PYPL?
Over the past 5 years, Klarna Group plc (KLAR) delivered a total return of -67.
9%, compared to -81. 6% for PayPal Holdings, Inc. (PYPL). Over 10 years, the gap is even starker: PYPL returned +17. 4% versus KLAR's -67. 9%. 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 — KLAR or PYPL?
By beta (market sensitivity over 5 years), PayPal Holdings, Inc.
(PYPL) is the lower-risk stock at 1. 39β versus Klarna Group plc's 2. 46β — meaning KLAR is approximately 76% more volatile than PYPL relative to the S&P 500. On balance sheet safety, Klarna Group plc (KLAR) carries a lower debt/equity ratio of 35% versus 49% for PayPal Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — KLAR or PYPL?
By revenue growth (latest reported year), Klarna Group plc (KLAR) is pulling ahead at 21.
2% versus 4. 3% for PayPal Holdings, Inc. (PYPL). On earnings-per-share growth, the picture is similar: Klarna Group plc grew EPS 101. 0% year-over-year, compared to 35. 6% for PayPal Holdings, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — KLAR or PYPL?
PayPal Holdings, Inc.
(PYPL) is the more profitable company, earning 15. 8% net margin versus 0. 1% for Klarna Group plc — meaning it keeps 15. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PYPL leads at 18. 3% versus -4. 5% for KLAR. At the gross margin level — before operating expenses — KLAR leads at 77. 7%, 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.
07Is KLAR or PYPL more undervalued right now?
On forward earnings alone, PayPal Holdings, Inc.
(PYPL) trades at 8. 7x forward P/E versus 570. 5x for Klarna Group plc — 561. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for KLAR: 68. 7% to $24. 83.
08Which pays a better dividend — KLAR or PYPL?
In this comparison, PYPL (0.
3% yield) pays a dividend. KLAR does not pay a meaningful dividend and should not be held primarily for income.
09Is KLAR 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. Klarna Group plc (KLAR) carries a higher beta of 2. 46 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (PYPL: +17. 4%, KLAR: -67. 9%), 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.
10What are the main differences between KLAR and PYPL?
These companies operate in different sectors (KLAR (Technology) and PYPL (Financial Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: KLAR is a small-cap high-growth 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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(KLAR: 21.2% · PYPL: 4.3%)P/E Ratio<
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