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IBKR vs. PYPL: Interactive Brokers vs. PayPal Stock Comparison

How do Interactive Brokers (IBKR) 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

Interactive Brokers (IBKR) and PayPal (PYPL) both fall under the Financial Services industry group, but IBKR is classified in Capital Markets while PYPL is classified in Financial Services.

Company profile comparison for Interactive Brokers (IBKR) and PayPal (PYPL)
Profile ItemIBKRPYPL
NameInteractive Brokers Group, Inc. Class A Common StockPayPal Holdings, Inc.
Country/RegionUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupFinancial ServicesFinancial Services
GICS IndustryCapital MarketsFinancial Services
GICS Sub-IndustryInvestment Banking & BrokerageTransaction & Payment Processing Services
Market Capitalization129.19 billion USD49.21 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMay 4, 2007July 6, 2015
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

IBKR
PYPL
GSPC
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Interactive Brokers (IBKR) vs. PayPal (PYPL), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Interactive Brokers (IBKR) and PayPal (PYPL). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Interactive Brokers (IBKR) and PayPal (PYPL). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Interactive Brokers (IBKR) and PayPal (PYPL)
MetricIBKRPYPL
Total Return (1Y)11.53%-7.44%
Total Return (3Y, Annualized)57.15%4.14%
Total Return (5Y, Annualized)34.54%-21.48%

Risk Profile

Drawdown History

IBKR
PYPL
GSPC
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Interactive Brokers (IBKR) vs. PayPal (PYPL), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Interactive Brokers (IBKR) and PayPal (PYPL). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Interactive Brokers (IBKR) and PayPal (PYPL)
MetricIBKRPYPL
Volatility (1Y, Annualized)40.72%42.40%
Beta (5Y)1.371.28
Max Drawdown (5Y)-38.66%-81.84%
Avg. Volume (3M)4.24M11.78M

Risk-Adjusted Performance

Risk-Return Positioning

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IBKR and PYPL are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Interactive Brokers (IBKR) and PayPal (PYPL)
MetricIBKRPYPL
Sharpe Ratio (1Y)0.18-0.28
Sortino Ratio (1Y)0.26-0.37

Profitability

ROE (TTM)

Both Interactive Brokers (IBKR) at 23.67% and PayPal (PYPL) at 23.83% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

IBKR

Financial Services industry group

23.67%

Max
44.78%
IBKR
23.67%
Q3
21.85%
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%
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Interactive Brokers (IBKR) vs. PayPal (PYPL): A comparison of their ROE against the Financial Services industry group benchmark.

Net Margin (TTM)

Both Interactive Brokers (IBKR) at 16.68% and PayPal (PYPL) at 13.78% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

IBKR

Financial Services industry group

16.68%

Max
62.84%
Q3
28.05%
IBKR
16.68%
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%
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Interactive Brokers (IBKR) vs. PayPal (PYPL): A comparison of their net margin against the Financial Services industry group benchmark.

Operating Margin (TTM)

Interactive Brokers (IBKR) at 77.70% operates in the top operating margin quartile, ahead of PayPal (PYPL) at 18.41%, which runs around its industry’s norm.

IBKR

Financial Services industry group

77.70%

Max
107.33%
IBKR
77.70%
Q3
55.90%
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%
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Interactive Brokers (IBKR) vs. PayPal (PYPL): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for Interactive Brokers (IBKR) and PayPal (PYPL)
MetricIBKRPYPL
ROE (TTM)23.67%23.83%
ROA (TTM)2.28%4.70%
Net Margin (TTM)16.68%13.78%
Operating Margin (TTM)77.70%18.41%
Gross Margin (TTM)----

Growth

Revenue Growth

Both Interactive Brokers (IBKR) at 9.73% and PayPal (PYPL) at 4.32% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Interactive Brokers (IBKR) vs. PayPal (PYPL): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Interactive Brokers (IBKR) at 28.14% 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.

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Interactive Brokers (IBKR) vs. PayPal (PYPL): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Interactive Brokers (IBKR) and PayPal (PYPL)
MetricIBKRPYPL
Revenue Growth (YoY)9.73%4.32%
Revenue Growth (3Y CAGR)34.60%6.43%
EPS Growth (YoY)28.14%35.59%
EPS Growth (3Y CAGR)33.29%37.30%

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: Interactive Brokers (IBKR) 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: Interactive Brokers (IBKR) 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

Financial strength metrics for Interactive Brokers (IBKR) and PayPal (PYPL)
MetricIBKRPYPL
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Both Interactive Brokers (IBKR) at 0.46% and PayPal (PYPL) at 0.95% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

IBKR

Financial Services industry group

0.46%

Max
9.77%
Q3
3.92%
Median
1.09%
IBKR
0.46%
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%
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Interactive Brokers (IBKR) vs. PayPal (PYPL): A comparison of their dividend yield against the Financial Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both Interactive Brokers (IBKR) at 12.79% and PayPal (PYPL) at 10.69% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.

IBKR

Financial Services industry group

12.79%

Max
241.07%
Q3
97.36%
Median
25.77%
IBKR
12.79%
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%
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Interactive Brokers (IBKR) vs. PayPal (PYPL): A comparison of their payout ratio against the Financial Services industry group benchmark.

Dividend Metrics

Dividend metrics for Interactive Brokers (IBKR) and PayPal (PYPL)
MetricIBKRPYPL
Dividend Yield (TTM)0.46%0.95%
Dividend Payout Ratio (TTM)12.79%10.69%

Valuation

P/E Ratio (TTM)

PayPal (PYPL) at 11.31 is near its industry’s usual P/E ratio, while Interactive Brokers (IBKR) at 28.94 sits in the richer quartile — IBKR needs stronger growth or earnings quality to justify the premium.

IBKR

Financial Services industry group

28.94

Max
45.85
IBKR
28.94
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
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Interactive Brokers (IBKR) vs. PayPal (PYPL): A comparison of their P/E ratio against the Financial Services industry group benchmark.

P/S Ratio (TTM)

PayPal (PYPL) at 1.43 prices around its industry’s typical P/S ratio, while Interactive Brokers (IBKR) at 18.30 clears its benchmark range — IBKR looks notably rich on sales.

IBKR

Financial Services industry group

18.30

IBKR
18.30
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
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Interactive Brokers (IBKR) vs. PayPal (PYPL): A comparison of their P/S ratio against the Financial Services industry group benchmark.

P/B Ratio (MRQ)

PayPal (PYPL) at 2.55 is valued about in line with its industry on P/B ratio, while Interactive Brokers (IBKR) at 5.53 carries an above-peer premium to book — IBKR is pricier on assets.

IBKR

Financial Services industry group

5.53

Max
7.79
IBKR
5.53
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
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Interactive Brokers (IBKR) vs. PayPal (PYPL): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for Interactive Brokers (IBKR) and PayPal (PYPL)
MetricIBKRPYPL
P/E Ratio (TTM)28.9411.31
P/S Ratio (TTM)18.301.43
P/B Ratio (MRQ)5.532.55
Free Cash Flow Yield (TTM)----