Analyzing PayPal (NASDAQ:PYPL) and Circle Internet Group (NYSE:CRCL)

Circle Internet Group (NYSE:CRCL) and PayPal (NASDAQ:PYPL) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Profitability

This table compares Circle Internet Group and PayPal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Circle Internet Group	15.53%	13.58%	0.58%
PayPal	14.36%	24.39%	6.06%

Volatility and Risk

Circle Internet Group has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, PayPal has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Insider & Institutional Ownership

68.3% of PayPal shares are owned by institutional investors. 10.8% of Circle Internet Group shares are owned by company insiders. Comparatively, 0.6% of PayPal shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Circle Internet Group and PayPal, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Circle Internet Group	3	13	10	1	2.33
PayPal	4	34	9	0	2.11

Circle Internet Group presently has a consensus price target of $97.12, indicating a potential upside of 35.29%. PayPal has a consensus price target of $55.72, indicating a potential downside of 9.63%. Given Circle Internet Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Circle Internet Group is more favorable than PayPal.

Valuation and Earnings

This table compares Circle Internet Group and PayPal”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Circle Internet Group	$2.75 billion	6.50	-$69.51 million	$1.46	49.17
PayPal	$33.17 billion	1.59	$5.23 billion	$5.29	11.66

PayPal has higher revenue and earnings than Circle Internet Group. PayPal is trading at a lower price-to-earnings ratio than Circle Internet Group, indicating that it is currently the more affordable of the two stocks.

Summary

Circle Internet Group beats PayPal on 8 of the 15 factors compared between the two stocks.

About Circle Internet Group

Founded in 2013, Circle’s mission is to raise global economic prosperity through the frictionless exchange of value. We intend to connect the world more deeply by building a new global economic system on the foundation of the internet, and to facilitate the creation of a world where everyone, everywhere can share value as easily as we can today share information, content, and communications. Since inception, we have relentlessly pursued our mission and vision, building fundamental technology for the internet financial system. We have forged paths toward mainstream acceptance through persistent and active engagement with policymakers and regulators globally, and have seen institutional and consumer knowledge and acceptance of internet-native financial assets approach critical mass. Large and influential players in the incumbent financial services system are increasingly embracing digital assets broadly and stablecoins specifically. Circle’s innovative products reach tens of millions of end-users, power thousands of businesses, and, as of March 31, 2025, USDC has been used for more than $25 trillion in onchain transactions. While we have made strong progress in our pursuit of our mission and vision over the past decade, we believe the internet financial system is in its infancy with decades of growth and innovation ahead. Our principal executive office is located in New York, NY.

About PayPal

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.