PYPL vs. XYZ

Last updated Jun 23, 2026

PYPL (PayPal Holdings, Inc.) and XYZ (Block, Inc) are both stocks. PYPL operates in Credit Services (Financial Services), while XYZ operates in Software - Infrastructure (Technology). Over the past 10 years, PYPL returned 1.99%/yr vs 23.62%/yr for XYZ. A 0.60 correlation means they provide meaningful diversification when combined.

Performance

PYPL vs. XYZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PayPal Holdings, Inc. (PYPL) and Block, Inc (XYZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PYPL achieves a -27.00% return, which is significantly lower than XYZ's 12.26% return. Over the past 10 years, PYPL has underperformed XYZ with an annualized return of 1.99%, while XYZ has yielded a comparatively higher 23.62% annualized return.

PYPL

• 1D: -0.40%
• 1M: -3.93%
• YTD: -27.00%
• 6M: -28.80%
• 1Y: -39.02%
• 3Y*: -13.91%
• 5Y*: -31.73%
• 10Y*: 1.99%

XYZ

• 1D: -2.29%
• 1M: 7.33%
• YTD: 12.26%
• 6M: 12.16%
• 1Y: 14.91%
• 3Y*: 5.14%
• 5Y*: -21.08%
• 10Y*: 23.62%

*Multi-year figures are annualized to reflect compound growth (CAGR)

PYPL vs. XYZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PYPL PayPal Holdings, Inc.	-27.00%	-31.44%	38.98%	-13.77%	-62.23%	-19.48%	116.51%	28.64%	14.22%	86.52%
XYZ Block, Inc	12.26%	-23.41%	9.88%	23.09%	-61.09%	-25.79%	247.89%	11.54%	61.78%	154.37%

Correlation

The correlation between PYPL and XYZ is 0.61, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.62
Correlation (All Time) Calculated using the full available price history since Nov 19, 2015	0.60

The correlation between PYPL and XYZ has been stable across timeframes, ranging from 0.58 to 0.65 - a consistent structural relationship.

Fundamentals

Market Cap PYPL : $38.95B XYZ : $43.67B
EPS PYPL : $5.31 XYZ : $1.31
PE Ratio PYPL : 7.98 XYZ : 55.80
PEG Ratio PYPL : 0.39 XYZ : 0.01
PS Ratio PYPL : 1.20 XYZ : 1.84
PB Ratio PYPL : 1.95 XYZ : 2.01
Total Revenue (TTM) PYPL : $33.73B XYZ : $24.48B
Gross Profit (TTM) PYPL : $15.56B XYZ : $11.01B
EBITDA (TTM) PYPL : $7.23B XYZ : $2.42B

Return for Risk

PYPL vs. XYZ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PYPL

PYPL Risk / Return Rank: 8
PYPL Sharpe Ratio Rank: 5
PYPL Sortino Ratio Rank: 8
PYPL Omega Ratio Rank: 7
PYPL Calmar Ratio Rank: 12
PYPL Martin Ratio Rank: 10

XYZ

XYZ Risk / Return Rank: 51
XYZ Sharpe Ratio Rank: 54
XYZ Sortino Ratio Rank: 50
XYZ Omega Ratio Rank: 49
XYZ Calmar Ratio Rank: 51
XYZ Martin Ratio Rank: 52

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PYPL vs. XYZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PayPal Holdings, Inc. (PYPL) and Block, Inc (XYZ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	PYPL	XYZ	Difference
Sharpe ratio: Return per unit of total volatility	-1.01	0.32	-1.33
Sortino ratio: Return per unit of downside risk	-1.29	0.78	-2.06
Omega ratio: Gain probability vs. loss probability	0.82	1.10	-0.28
Calmar ratio: Return relative to maximum drawdown	-0.78	0.38	-1.16
Martin ratio: Return relative to average drawdown	-1.33	0.87	-2.20

PYPL vs. XYZ - Sharpe Ratio Comparison

The current PYPL Sharpe Ratio is -1.01, which is lower than the XYZ Sharpe Ratio of 0.32. The chart below compares the historical Sharpe Ratios of PYPL and XYZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

PYPL vs. XYZ - Drawdown Comparison

The maximum PYPL drawdown since its inception was -87.30%, roughly equal to the maximum XYZ drawdown of -86.08%. Use the drawdown chart below to compare losses from any high point for PYPL and XYZ.

Drawdown Indicators

	PYPL	XYZ	Difference
Max Drawdown Largest peak-to-trough decline	-87.30%	-86.08%	-1.22%
Max Drawdown (1Y) Largest decline over 1 year	-49.92%	-39.48%	-10.44%
Max Drawdown (3Y) Largest decline over 3 years	-57.34%	-52.96%	-4.38%
Max Drawdown (5Y) Largest decline over 5 years	-87.30%	-86.08%	-1.22%
Max Drawdown (10Y) Largest decline over 10 years	-87.30%	-86.08%	-1.22%
Current Drawdown Current decline from peak	-86.15%	-74.07%	-12.08%
Average Drawdown Average peak-to-trough decline	-35.99%	-41.11%	+5.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	29.28%	17.19%	+12.09%

Volatility

PYPL vs. XYZ - Volatility Comparison

The current volatility for PayPal Holdings, Inc. (PYPL) is 8.64%, while Block, Inc (XYZ) has a volatility of 14.49%. This indicates that PYPL experiences smaller price fluctuations and is considered to be less risky than XYZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PYPL	XYZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.64%	14.49%	-5.85%
Volatility (6M) Calculated over the trailing 6-month period	32.06%	36.28%	-4.22%
Volatility (1Y) Calculated over the trailing 1-year period	38.91%	47.21%	-8.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	42.12%	60.05%	-17.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.82%	56.73%	-17.91%

Dividends

PYPL vs. XYZ - Dividend Comparison

PYPL's dividend yield for the trailing twelve months is around 1.02%, while XYZ has not paid dividends to shareholders.

Position	TTM	2025
PYPL PayPal Holdings, Inc.	1.02%	0.24%
XYZ Block, Inc	0.00%	0.00%

Financials

PYPL vs. XYZ - Profitability Comparison

The chart below illustrates the profitability comparison between PayPal Holdings, Inc. and Block, Inc over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

PYPL - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, PayPal Holdings, Inc. reported a gross profit of 3.81B and revenue of 8.35B. Therefore, the gross margin over that period was 45.6%.

XYZ - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Block, Inc reported a gross profit of 2.91B and revenue of 6.06B. Therefore, the gross margin over that period was 48.0%.

PYPL - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, PayPal Holdings, Inc. reported an operating income of 1.49B and revenue of 8.35B, resulting in an operating margin of 17.8%.

XYZ - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Block, Inc reported an operating income of -171.99M and revenue of 6.06B, resulting in an operating margin of -2.8%.

PYPL - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, PayPal Holdings, Inc. reported a net income of 1.11B and revenue of 8.35B, resulting in a net margin of 13.3%.

XYZ - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Block, Inc reported a net income of -308.68M and revenue of 6.06B, resulting in a net margin of -5.1%.

Frequently Asked Questions

Can I hold both PYPL and XYZ in my portfolio?

PYPL and XYZ have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PYPL or XYZ?

XYZ has higher volatility (14.49%) compared to PYPL (8.64%). In terms of maximum drawdown, PYPL dropped -87.30% vs XYZ's -86.08%.

Which has better risk-adjusted returns?

XYZ currently has the higher Sharpe Ratio (0.32 vs -1.01), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.