XYZ vs. PYPL

Last updated Jun 3, 2026

XYZ (Block, Inc) and PYPL (PayPal Holdings, Inc.) are both stocks. XYZ operates in Software - Infrastructure (Technology), while PYPL operates in Credit Services (Financial Services). Over the past 10 years, XYZ returned 22.86%/yr vs 1.56%/yr for PYPL. A 0.60 correlation means they provide meaningful diversification when combined.

Performance

XYZ vs. PYPL - Performance Comparison

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

Returns By Period

In the year-to-date period, XYZ achieves a 13.92% return, which is significantly higher than PYPL's -23.49% return. Over the past 10 years, XYZ has outperformed PYPL with an annualized return of 22.86%, while PYPL has yielded a comparatively lower 1.56% annualized return.

XYZ

• 1D: -2.56%
• 1M: 3.26%
• YTD: 13.92%
• 6M: 23.36%
• 1Y: 20.06%
• 3Y*: 5.33%
• 5Y*: -18.91%
• 10Y*: 22.86%

PYPL

• 1D: -1.46%
• 1M: -11.72%
• YTD: -23.49%
• 6M: -28.99%
• 1Y: -36.88%
• 3Y*: -11.21%
• 5Y*: -29.54%
• 10Y*: 1.56%

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

XYZ vs. PYPL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XYZ Block, Inc	13.92%	-23.41%	9.88%	23.09%	-61.09%	-25.79%	247.89%	11.54%	61.78%	154.37%
PYPL PayPal Holdings, Inc.	-23.49%	-31.44%	38.98%	-13.77%	-62.23%	-19.48%	116.51%	28.64%	14.22%	86.52%

Correlation

The correlation between XYZ and PYPL is 0.59, 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	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.57
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 20, 2015	0.60

The correlation between XYZ and PYPL has been stable across timeframes, ranging from 0.57 to 0.65 - a consistent structural relationship.

Fundamentals

Market Cap XYZ : $44.31B PYPL : $40.97B
EPS XYZ : $1.31 PYPL : $5.31
PE Ratio XYZ : 56.63 PYPL : 8.39
PEG Ratio XYZ : 0.01 PYPL : 0.41
PS Ratio XYZ : 1.86 PYPL : 1.26
PB Ratio XYZ : 2.04 PYPL : 2.05
Total Revenue (TTM) XYZ : $24.48B PYPL : $33.73B
Gross Profit (TTM) XYZ : $11.01B PYPL : $15.56B
EBITDA (TTM) XYZ : $2.42B PYPL : $7.23B

Return for Risk

XYZ vs. PYPL — Risk / Return Rank

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

XYZ

XYZ Risk / Return Rank: 52
XYZ Sharpe Ratio Rank: 56
XYZ Sortino Ratio Rank: 51
XYZ Omega Ratio Rank: 51
XYZ Calmar Ratio Rank: 52
XYZ Martin Ratio Rank: 53

PYPL

PYPL Risk / Return Rank: 9
PYPL Sharpe Ratio Rank: 5
PYPL Sortino Ratio Rank: 8
PYPL Omega Ratio Rank: 7
PYPL Calmar Ratio Rank: 13
PYPL Martin Ratio Rank: 9

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.

XYZ vs. PYPL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Block, Inc (XYZ) and PayPal Holdings, Inc. (PYPL). 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.

	XYZ	PYPL	Difference
Sharpe ratio Return per unit of total volatility	0.44	-0.95	+1.39
Sortino ratio Return per unit of downside risk	0.92	-1.18	+2.11
Omega ratio Gain probability vs. loss probability	1.12	0.83	+0.28
Calmar ratio Return relative to maximum drawdown	0.51	-0.73	+1.24
Martin ratio Return relative to average drawdown	1.18	-1.33	+2.51
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XYZ vs. PYPL - Sharpe Ratio Comparison

The current XYZ Sharpe Ratio is 0.44, which is higher than the PYPL Sharpe Ratio of -0.95. The chart below compares the historical Sharpe Ratios of XYZ and PYPL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XYZ	PYPL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.44	-0.95	+1.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.32	-0.71	+0.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.41	0.04	+0.36
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.02	+0.29

Drawdowns

XYZ vs. PYPL - Drawdown Comparison

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

Drawdown Indicators

	XYZ	PYPL	Difference
Max Drawdown Largest peak-to-trough decline	-86.08%	-87.30%	+1.22%
Max Drawdown (1Y) Largest decline over 1 year	-39.48%	-49.92%	+10.44%
Max Drawdown (3Y) Largest decline over 3 years	-52.96%	-57.34%	+4.38%
Max Drawdown (5Y) Largest decline over 5 years	-86.08%	-87.30%	+1.22%
Max Drawdown (10Y) Largest decline over 10 years	-86.08%	-87.30%	+1.22%
Current Drawdown Current decline from peak	-73.69%	-85.49%	+11.80%
Average Drawdown Average peak-to-trough decline	-40.96%	-35.61%	-5.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.95%	27.38%	-10.43%

Volatility

XYZ vs. PYPL - Volatility Comparison

Block, Inc (XYZ) has a higher volatility of 11.76% compared to PayPal Holdings, Inc. (PYPL) at 8.86%. This indicates that XYZ's price experiences larger fluctuations and is considered to be riskier than PYPL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XYZ	PYPL	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.76%	8.86%	+2.90%
Volatility (6M) Calculated over the trailing 6-month period	35.37%	31.36%	+4.01%
Volatility (1Y) Calculated over the trailing 1-year period	46.20%	38.82%	+7.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	59.94%	42.04%	+17.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	56.66%	38.75%	+17.91%

Dividends

XYZ vs. PYPL - Dividend Comparison

XYZ has not paid dividends to shareholders, while PYPL's dividend yield for the trailing twelve months is around 0.63%.

Position	TTM	2025
PYPL PayPal Holdings, Inc.	0.63%	0.24%
XYZ Block, Inc	0.00%	0.00%

Financials

XYZ vs. PYPL - Profitability Comparison

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

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 - 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 - 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 - 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 - 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%.

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%.

Frequently Asked Questions

Can I hold both XYZ and PYPL in my portfolio?

XYZ and PYPL have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XYZ or PYPL?

XYZ has higher volatility (11.76%) compared to PYPL (8.86%). In terms of maximum drawdown, XYZ dropped -86.08% vs PYPL's -87.30%.

Which has better risk-adjusted returns?

XYZ currently has the higher Sharpe Ratio (0.44 vs -0.95), 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.