Discover Financial Services (DFS) vs PayPal Holdings, Inc. (PYPL)
DFS leads on 11 of 16 compared metrics, though PYPL is the cheaper stock.
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 June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
DFS
Discover Financial Services
$200.05Financial Services
PYPL
PayPal Holdings, Inc.
$41.53Financial Services
Total return — DFS vs PYPL
growth of $100 · last 10yDFS +244.6%PYPL +96.6%DFS compounded faster
DFS PYPL
DFS vs PYPL: by the numbers
- •DFS is the larger company ($50.34B vs $36.63B market cap).
- •PYPL trades at the lower earnings multiple (7.79 vs 10.67 P/E).
- •DFS converts more revenue to profit (21.65% vs 15.00% net margin).
- •DFS grew revenue faster over the past five years (13.84% vs 8.09% CAGR).
- •DFS pays the higher dividend yield (1.40% vs 1.01%).
Which is better, DFS or PYPL?
Metric tally: DFS 11 · PYPL 5It depends on what you're optimizing for:
ValuePYPL(lower P/E)
GrowthDFS(faster 5Y revenue CAGR)
IncomeDFS(higher dividend yield)
QualityDFS(higher ROIC)
Valuation
| Metric | DFS | PYPL |
|---|---|---|
| P/E ratio | 10.67 | 7.79● |
| Forward P/E | 12.59 | 7.21● |
| P/S ratio | 2.28 | 1.13● |
| P/B ratio | 2.66 | 1.91● |
| PEG ratio | 0.15● | 0.30 |
| EV / EBITDA | 6.75 | 5.62● |
| FCF yield | 16.78%● | 14.43% |
Profitability
| Metric | DFS | PYPL |
|---|---|---|
| Gross margin | 65.86%● | 46.12% |
| Operating margin | 34.55%● | 17.85% |
| Net margin | 21.65%● | 15.00% |
| ROE | 25.29% | 25.26% |
| ROIC | 32.48%● | 14.95% |
Dividends
| Metric | DFS | PYPL |
|---|---|---|
| Dividend yield | 1.40%● | 1.01% |
| Payout ratio | 15.81% | 7.69% |
Growth (annualized)
| Metric | DFS | PYPL |
|---|---|---|
| Revenue CAGR (5Y) | 13.84%● | 8.09% |
| EPS CAGR (5Y) | 14.26%● | 8.81% |
| FCF CAGR (5Y) | 9.87%● | 0.75% |
| Total return CAGR (5Y) | 42.63%● | -31.17% |
Frequently asked
- Which is better, DFS or PYPL?
- It depends on your goal. value: PYPL (lower P/E); growth: DFS (faster 5Y revenue CAGR); income: DFS (higher dividend yield); quality: DFS (higher ROIC). Across all compared metrics, DFS leads 11 to 5.
- Is DFS or PYPL cheaper?
- On trailing earnings, PYPL is cheaper: DFS trades at a 10.67 P/E and PYPL at 7.79.
- 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 8.09%.
- Does DFS or PYPL pay a bigger dividend?
- DFS yields 1.40% and PYPL yields 1.01% 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 15.00%.
- Which has been the better investment, DFS or PYPL?
- Over the past 10-year, DFS delivered the higher annualized total return — DFS at 15.34% versus PYPL at 1.31%. 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 June 13, 2026.