HOOD vs. PYPL: Robinhood Markets vs. PayPal Stock Comparison
How do Robinhood Markets (HOOD) and PayPal (PYPL) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Robinhood Markets (HOOD) and PayPal (PYPL) both fall under the Financial Services industry group, but HOOD is classified in Capital Markets while PYPL is classified in Financial Services.
| Profile Item | HOOD | PYPL |
|---|---|---|
| Name | Robinhood Markets Inc. Class A Common Stock | PayPal Holdings, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Financials | Financials |
| GICS Industry Group | Financial Services | Financial Services |
| GICS Industry | Capital Markets | Financial Services |
| GICS Sub-Industry | Investment Banking & Brokerage | Transaction & Payment Processing Services |
| Market Capitalization | 72.86 billion USD | 49.21 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | July 29, 2021 | July 6, 2015 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | HOOD | PYPL |
|---|---|---|
| Total Return (1Y) | -35.46% | -7.44% |
| Total Return (3Y, Annualized) | 119.74% | 4.14% |
| Total Return (5Y, Annualized) | 18.05% | -21.48% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
Robinhood Markets (HOOD) carries a highly aggressive beta of 2.52, indicating much higher sensitivity to broad-market moves, whereas PayPal (PYPL) is closer to market-like at 1.28 — a noticeable difference in market-sensitivity profile.
| Metric | HOOD | PYPL |
|---|---|---|
| Volatility (1Y, Annualized) | 71.13% | 42.40% |
| Beta (5Y) | 2.52 | 1.28 |
| Max Drawdown (5Y) | -81.23% | -81.84% |
| Avg. Volume (3M) | 20.63M | 11.78M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | HOOD | PYPL |
|---|---|---|
| Sharpe Ratio (1Y) | -0.56 | -0.28 |
| Sortino Ratio (1Y) | -0.82 | -0.37 |
Profitability
ROE (TTM)
PayPal (PYPL) at 23.83% sits in the top ROE quartile, while Robinhood Markets (HOOD) at 21.45% is closer to the peer norm — stronger capital efficiency for PYPL.
HOOD
Financial Services industry group
21.45%
- Max
- 44.78%
- Q3
- 21.85%
- HOOD
- 21.45%
- Median
- 12.91%
- Q1
- 4.48%
- Min
- -18.71%
PYPL
Financial Services industry group
23.83%
- Max
- 44.78%
- PYPL
- 23.83%
- Q3
- 21.85%
- Median
- 12.91%
- Q1
- 4.48%
- Min
- -18.71%
Net Margin (TTM)
Robinhood Markets (HOOD) at 39.04% retains a top-quartile share of revenue as profit, ahead of PayPal (PYPL) at 13.78%, which keeps about the industry-typical share.
HOOD
Financial Services industry group
39.04%
- Max
- 62.84%
- HOOD
- 39.04%
- Q3
- 28.05%
- Median
- 15.36%
- Q1
- 4.82%
- Min
- -28.52%
PYPL
Financial Services industry group
13.78%
- Max
- 62.84%
- Q3
- 28.05%
- Median
- 15.36%
- PYPL
- 13.78%
- Q1
- 4.82%
- Min
- -28.52%
Operating Margin (TTM)
Both Robinhood Markets (HOOD) at 48.10% and PayPal (PYPL) at 18.41% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.
HOOD
Financial Services industry group
48.10%
- Max
- 107.33%
- Q3
- 55.90%
- HOOD
- 48.10%
- Median
- 30.09%
- Q1
- 14.60%
- Min
- -44.34%
PYPL
Financial Services industry group
18.41%
- Max
- 107.33%
- Q3
- 55.90%
- Median
- 30.09%
- PYPL
- 18.41%
- Q1
- 14.60%
- Min
- -44.34%
Profitability Metrics
| Metric | HOOD | PYPL |
|---|---|---|
| ROE (TTM) | 21.45% | 23.83% |
| ROA (TTM) | 4.01% | 4.70% |
| Net Margin (TTM) | 39.04% | 13.78% |
| Operating Margin (TTM) | 48.10% | 18.41% |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Robinhood Markets (HOOD) at 51.58% sits in the top revenue growth quartile, while PayPal (PYPL) at 4.32% is closer to the peer norm — faster top-line expansion for HOOD.
EPS Growth
Both Robinhood Markets (HOOD) at 31.41% and PayPal (PYPL) at 35.59% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | HOOD | PYPL |
|---|---|---|
| Revenue Growth (YoY) | 51.58% | 4.32% |
| Revenue Growth (3Y CAGR) | 48.79% | 6.43% |
| EPS Growth (YoY) | 31.41% | 35.59% |
| EPS Growth (3Y CAGR) | -- | 37.30% |
Financial Strength
Current Ratio (MRQ)
current ratio doesn’t apply on either side: Robinhood Markets (HOOD) in Financial Services and PayPal (PYPL) in Financial Services both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.
Debt / Equity (MRQ)
debt-to-equity ratio is set aside for both: Robinhood Markets (HOOD) in Financial Services and PayPal (PYPL) in Financial Services run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.
Financial Strength Metrics
| Metric | HOOD | PYPL |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Robinhood Markets (HOOD) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile PayPal (PYPL) reports a yield of 0.95%, ranking against industry peers normally.
HOOD
Financial Services industry group
0.00%
- Max
- 9.77%
- Q3
- 3.92%
- Median
- 1.09%
- HOOD
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PYPL
Financial Services industry group
0.95%
- Max
- 9.77%
- Q3
- 3.92%
- Median
- 1.09%
- PYPL
- 0.95%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Robinhood Markets (HOOD) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile PayPal (PYPL) reports a payout of 10.69%, ranking against industry peers normally.
HOOD
Financial Services industry group
0.00%
- Max
- 241.07%
- Q3
- 97.36%
- Median
- 25.77%
- HOOD
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PYPL
Financial Services industry group
10.69%
- Max
- 241.07%
- Q3
- 97.36%
- Median
- 25.77%
- PYPL
- 10.69%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | HOOD | PYPL |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.95% |
| Dividend Payout Ratio (TTM) | 0.00% | 10.69% |
Valuation
P/E Ratio (TTM)
PayPal (PYPL) at 11.31 is near its industry’s usual P/E ratio, while Robinhood Markets (HOOD) at 37.29 sits in the richer quartile — HOOD needs stronger growth or earnings quality to justify the premium.
HOOD
Financial Services industry group
37.29
- Max
- 45.85
- HOOD
- 37.29
- Q3
- 24.64
- Median
- 15.37
- Q1
- 9.68
- Min
- 0.16
PYPL
Financial Services industry group
11.31
- Max
- 45.85
- Q3
- 24.64
- Median
- 15.37
- PYPL
- 11.31
- Q1
- 9.68
- Min
- 0.16
P/S Ratio (TTM)
PayPal (PYPL) at 1.43 prices around its industry’s typical P/S ratio, while Robinhood Markets (HOOD) at 14.34 clears its benchmark range — HOOD looks notably rich on sales.
HOOD
Financial Services industry group
14.34
- HOOD
- 14.34
- Max
- 9.23
- Q3
- 4.57
- Median
- 2.72
- Q1
- 1.28
- Min
- -0.55
PYPL
Financial Services industry group
1.43
- Max
- 9.23
- Q3
- 4.57
- Median
- 2.72
- PYPL
- 1.43
- Q1
- 1.28
- Min
- -0.55
P/B Ratio (MRQ)
PayPal (PYPL) at 2.55 is valued about in line with its industry on P/B ratio, while Robinhood Markets (HOOD) at 7.29 carries an above-peer premium to book — HOOD is pricier on assets.
HOOD
Financial Services industry group
7.29
- Max
- 7.79
- HOOD
- 7.29
- Q3
- 3.63
- Median
- 1.57
- Q1
- 0.81
- Min
- -0.39
PYPL
Financial Services industry group
2.55
- Max
- 7.79
- Q3
- 3.63
- PYPL
- 2.55
- Median
- 1.57
- Q1
- 0.81
- Min
- -0.39
Valuation Metrics
| Metric | HOOD | PYPL |
|---|---|---|
| P/E Ratio (TTM) | 37.29 | 11.31 |
| P/S Ratio (TTM) | 14.34 | 1.43 |
| P/B Ratio (MRQ) | 7.29 | 2.55 |
| Free Cash Flow Yield (TTM) | -- | -- |