Comprehensive Stock Comparison
Compare PayPal Holdings, Inc. (PYPL) vs JPMorgan Chase & Co. (JPM) 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 | JPM | 14.6% revenue growth vs PYPL's 4.8% |
| Value | PYPL | Lower P/E (8.7x vs 13.9x), PEG 0.98 vs 1.07 |
| Quality / Margins | JPM | 21.6% net margin vs PYPL's 15.7% |
| Stability / Safety | JPM | Beta 1.00 vs PYPL's 1.30 |
| Dividends | JPM | 1.7% yield, 14-year raise streak, vs PYPL's 0.3% |
| Momentum (1Y) | JPM | +15.7% vs PYPL's -34.8% |
| Efficiency (ROA) | PYPL | 6.5% ROA vs JPM's 1.3%, ROIC 16.3% vs 5.4% |
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
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.
JPMorgan Chase is a global financial services giant that operates as a universal bank offering consumer banking, investment banking, commercial banking, and asset management services. It generates revenue primarily through net interest income from lending activities (about 50% of total revenue) and non-interest income from investment banking fees, trading, asset management, and card services. The company's key competitive advantage lies in its massive scale, diversified revenue streams, and fortress balance sheet—which together create significant barriers to entry and provide stability through economic cycles.
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
JPM leads in 4 of 6 categories (Financial Metrics, Total Returns). PYPL leads in 2 (Valuation Metrics, Profitability & Efficiency).
Financial Metrics (TTM)
JPM is the larger business by revenue, generating $270.8B annually — 8.1x PYPL's $33.3B. JPM is the more profitable business, keeping 21.6% of every revenue dollar as net income compared to PYPL's 15.7%.
| Metric | PYPLPayPal Holdings, … | JPMJPMorgan Chase & … |
|---|---|---|
| RevenueTrailing 12 months | $33.3B | $270.8B |
| EBITDAEarnings before interest/tax | $7.2B | $81.3B |
| Net IncomeAfter-tax profit | $5.2B | $58.0B |
| Free Cash FlowCash after capex | $5.6B | -$119.7B |
| Gross MarginGross profit ÷ Revenue | +47.0% | +58.6% |
| Operating MarginEBIT ÷ Revenue | +19.7% | +27.7% |
| Net MarginNet income ÷ Revenue | +15.7% | +21.6% |
| FCF MarginFCF ÷ Revenue | +16.7% | -15.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +37.8% | +16.0% |
Valuation Metrics
At 8.5x trailing earnings, PYPL trades at a 44% valuation discount to JPM's 15.2x P/E. Adjusting for growth (PEG ratio), PYPL offers better value at 0.96x vs JPM's 1.17x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | PYPLPayPal Holdings, … | JPMJPMorgan Chase & … |
|---|---|---|
| Market CapShares × price | $42.5B | $809.7B |
| Enterprise ValueMkt cap + debt − cash | $44.5B | $1.09T |
| Trailing P/EPrice ÷ TTM EPS | 8.54x | 15.21x |
| Forward P/EPrice ÷ next-FY EPS est. | 8.68x | 13.93x |
| PEG RatioP/E ÷ EPS growth rate | 0.96x | 1.17x |
| EV / EBITDAEnterprise value multiple | 5.90x | 13.15x |
| Price / SalesMarket cap ÷ Revenue | 1.28x | 2.99x |
| Price / BookPrice ÷ Book value/share | 2.21x | 2.51x |
| Price / FCFMarket cap ÷ FCF | 7.64x | — |
Profitability & Efficiency
PYPL delivers a 25.8% return on equity — every $100 of shareholder capital generates $26 in annual profit, vs $16 for JPM. PYPL carries lower financial leverage with a 0.49x debt-to-equity ratio, signaling a more conservative balance sheet compared to JPM's 2.18x. On the Piotroski fundamental quality scale (0–9), PYPL scores 8/9 vs JPM's 5/9, reflecting strong financial health.
| Metric | PYPLPayPal Holdings, … | JPMJPMorgan Chase & … |
|---|---|---|
| ROE (TTM)Return on equity | +25.8% | +16.1% |
| ROA (TTM)Return on assets | +6.5% | +1.3% |
| ROICReturn on invested capital | +16.3% | +5.4% |
| ROCEReturn on capital employed | +19.6% | +8.2% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 5 |
| Debt / EquityFinancial leverage | 0.49x | 2.18x |
| Net DebtTotal debt minus cash | $1.9B | $281.8B |
| Cash & Equiv.Liquid assets | $8.0B | $469.3B |
| Total DebtShort + long-term debt | $10.0B | $751.1B |
| Interest CoverageEBIT ÷ Interest expense | 12.25x | 0.74x |
Total Returns (with DRIP)
A $10,000 investment in JPM five years ago would be worth $21,449 today (with dividends reinvested), compared to $1,694 for PYPL. Over the past 12 months, JPM leads with a +15.7% total return vs PYPL's -34.8%. The 3-year compound annual growth rate (CAGR) favors JPM at 30.0% vs PYPL's -14.3% — a key indicator of consistent wealth creation.
| Metric | PYPLPayPal Holdings, … | JPMJPMorgan Chase & … |
|---|---|---|
| YTD ReturnYear-to-date | -20.5% | -7.3% |
| 1-Year ReturnPast 12 months | -34.8% | +15.7% |
| 3-Year ReturnCumulative with dividends | -37.0% | +119.7% |
| 5-Year ReturnCumulative with dividends | -83.1% | +114.5% |
| 10-Year ReturnCumulative with dividends | +21.5% | +497.7% |
| CAGR (3Y)Annualised 3-year return | -14.3% | +30.0% |
Risk & Volatility
JPM is the less volatile stock with a 1.00 beta — it tends to amplify market swings less than PYPL's 1.30 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. JPM currently trades 89.0% from its 52-week high vs PYPL's 58.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | PYPLPayPal Holdings, … | JPMJPMorgan Chase & … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.30x | 1.00x |
| 52-Week HighHighest price in past year | $79.50 | $337.25 |
| 52-Week LowLowest price in past year | $38.46 | $202.16 |
| % of 52W HighCurrent price vs 52-week peak | +58.1% | +89.0% |
| RSI (14)Momentum oscillator 0–100 | 46.2 | 48.1 |
| Avg Volume (50D)Average daily shares traded | 18.5M | 9.0M |
Analyst Outlook
Wall Street rates PYPL as "Hold" and JPM as "Buy". Consensus price targets imply 14.8% upside for PYPL (target: $53) vs 11.9% for JPM (target: $336). For income investors, JPM offers the higher dividend yield at 1.71% vs PYPL's 0.29%.
| Metric | PYPLPayPal Holdings, … | JPMJPMorgan Chase & … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $53.05 | $336.10 |
| # AnalystsCovering analysts | 69 | 60 |
| Dividend YieldAnnual dividend ÷ price | +0.3% | +1.7% |
| Dividend StreakConsecutive years of raises | 1 | 14 |
| Dividend / ShareAnnual DPS | $0.13 | $5.13 |
| Buyback YieldShare repurchases ÷ mkt cap | +14.2% | +3.5% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| PayPal Holdings, In… (PYPL) | 100 | 46.37 | -53.6% |
| JPMorgan Chase & Co. (JPM) | 100 | 253.57 | +153.6% |
JPMorgan Chase & Co. (JPM) returned +114% over 5 years vs PayPal Holdings, In… (PYPL)'s -83%. A $10,000 investment in JPM 5 years ago would be worth $21,449 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| PayPal Holdings, In… (PYPL) | $10.8B | $33.3B | +207.5% |
| JPMorgan Chase & Co. (JPM) | $106.4B | $270.8B | +154.5% |
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 |
|---|---|---|---|
| PayPal Holdings, In… (PYPL) | 12.9% | 15.7% | +21.5% |
| JPMorgan Chase & Co. (JPM) | 23.2% | 21.6% | -7.1% |
PayPal Holdings, Inc.'s net margin went from 13% (2016) to 16% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| PayPal Holdings, In… (PYPL) | 50.1 | 10.8 | -78.4% |
| JPMorgan Chase & Co. (JPM) | 16.9 | 12.1 | -28.4% |
PayPal Holdings, Inc. has traded in a 11x–66x P/E range over 9 years; current trailing P/E is ~9x. JPMorgan Chase & Co. has traded in a 10x–17x P/E range over 8 years; current trailing P/E is ~15x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| PayPal Holdings, In… (PYPL) | 1.15 | 5.41 | +370.4% |
| JPMorgan Chase & Co. (JPM) | 6.19 | 19.75 | +219.1% |
PayPal Holdings, Inc.'s EPS grew from $1.15 (2016) to $5.41 (2025) — a 19% CAGR.
Chart 6Free Cash Flow — 5 Years
PayPal Holdings, Inc. generated $6B FCF in 2025 (+14% vs 2021). JPMorgan Chase & Co. generated $-42B FCF in 2024 (-154% vs 2021).
PYPL vs JPM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is PYPL or JPM 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 JPMorgan Chase & Co. (JPM) a "Buy" — based on 60 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 — PYPL or JPM?
On trailing P/E, PayPal Holdings, Inc. (PYPL) is the cheapest at 8.5x versus JPMorgan Chase & Co. at 15.2x. 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 JPMorgan Chase & Co.'s 1.07x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — PYPL or JPM?
Over the past 5 years, JPMorgan Chase & Co. (JPM) delivered a total return of +114.5%, compared to -83.1% for PayPal Holdings, Inc. (PYPL). A $10,000 investment in JPM five years ago would be worth approximately $21K today (assuming dividends reinvested). Over 10 years, the gap is even starker: JPM returned +497.7% 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 — PYPL or JPM?
By beta (market sensitivity over 5 years), JPMorgan Chase & Co. (JPM) is the lower-risk stock at 1.00β versus PayPal Holdings, Inc.'s 1.30β — meaning PYPL is approximately 30% more volatile than JPM relative to the S&P 500. On balance sheet safety, PayPal Holdings, Inc. (PYPL) carries a lower debt/equity ratio of 49% versus 2% for JPMorgan Chase & Co. — giving it more financial flexibility in a downturn.
05Which has better profit margins — PYPL or JPM?
JPMorgan Chase & Co. (JPM) is the more profitable company, earning 21.6% net margin versus 15.7% for PayPal Holdings, Inc. — meaning it keeps 21.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: JPM leads at 27.7% versus 19.7% for PYPL. At the gross margin level — before operating expenses — JPM leads at 58.6%, 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 PYPL or JPM 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 JPMorgan Chase & Co.'s 1.07x. 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 13.9x for JPMorgan Chase & Co. — 5.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PYPL: 14.8% to $53.05.
07Which pays a better dividend — PYPL or JPM?
All stocks in this comparison pay dividends. JPMorgan Chase & Co. (JPM) offers the highest yield at 1.7%, versus 0.3% for PayPal Holdings, Inc. (PYPL).
08Is PYPL or JPM better for a retirement portfolio?
For long-horizon retirement investors, JPMorgan Chase & Co. (JPM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.00), 1.7% yield, +497.7% 10Y return). Both have compounded well over 10 years (JPM: +497.7%, 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 PYPL and JPM?
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. JPM 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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