Discover Financial Services (DFS) vs PayPal Holdings, Inc. (PYPL)
A side-by-side comparison of Discover Financial Services and PayPal Holdings, Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 28, 2026. Differences are shown without an overall score or investment verdict.
DFS
Discover Financial Services
$200.05Financial ServicesAt close: May 16, 2025, 4:00 PM ET
PYPL
PayPal Holdings, Inc.
$58.32Financial ServicesDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — DFS vs PYPL
growth of $100 · dividends reinvested · last 10yDFS +330.4%PYPL +95.0%DFS compounded faster
DFS PYPL
DFS vs PYPL: by the numbers
- •PYPL is the larger company ($51.44B vs $50.34B market cap).
- •PYPL trades at the lower trailing earnings multiple (10.52 vs 10.67 P/E), one valuation lens rather than an overall verdict.
- •DFS converts more revenue to profit (21.65% vs 14.36% net margin).
- •DFS grew revenue faster over the past five years (13.84% vs 7.43% CAGR).
- •DFS pays the higher dividend yield (1.40% vs 0.75%).
Metrics side by side
Valuation
| Metric | DFS | PYPL |
|---|---|---|
| P/E ratio | 10.67 | 10.52 |
| Forward P/E | 12.59 | 10.56 |
| P/S ratio | 2.28 | 1.53 |
| P/B ratio | 2.66 | 2.58 |
| PEG ratio | 0.15 | 0.30 |
Profitability
| Metric | DFS | PYPL |
|---|---|---|
| Gross margin | 89.46% | 45.75% |
| Operating margin | 88.29% | 18.78% |
| Net margin | 21.65% | 14.36% |
| ROE | 25.29% | 24.73% |
| ROIC | 32.48% | 14.95% |
Dividends
| Metric | DFS | PYPL |
|---|---|---|
| Dividend yield | 1.40% | 0.75% |
| Payout ratio | 15.81% | 7.69% |
Growth (annualized)
| Metric | DFS | PYPL |
|---|---|---|
| Revenue CAGR (5Y) | 13.84% | 7.43% |
| EPS CAGR (5Y) | 14.26% | 8.81% |
| Total return CAGR (5Y) | 42.63% | -27.93% |
Frequently asked
- Which has the lower trailing P/E, DFS or PYPL?
- PYPL has the lower trailing P/E: DFS trades at 10.67 and PYPL at 10.52. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, DFS or PYPL?
- Over the past five years, DFS grew revenue faster — DFS at a 13.84% CAGR versus PYPL at 7.43%.
- Does DFS or PYPL pay a bigger dividend?
- DFS yields 1.40% and PYPL yields 0.75% based on trailing dividends and the latest price.
- Is DFS or PYPL more profitable?
- DFS runs the higher net margin — DFS at 21.65% versus PYPL at 14.36%.
- How have DFS and PYPL total returns compared?
- Over the past 10 years, DFS delivered 15.34% and PYPL delivered 4.66% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Discover Financial Services P/E ratioPayPal P/E ratioDiscover Financial Services dividend yieldPayPal dividend yieldDiscover Financial Services ROEPayPal ROEDiscover Financial Services operating marginPayPal operating marginDiscover Financial Services revenue growthPayPal revenue growthDiscover Financial Services free cash flowPayPal free cash flow
Discover Financial Services & PayPal appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified July 28, 2026.