Amazon vs PayPal Holdings: Business Model & Financial Comparison 2026
Amazon · Consumer Cyclical / Internet Retail·PayPal Holdings · Financial Services / Credit Services
Financial Comparison
| Metric | AMZNAmazon | PYPLPayPal Holdings |
|---|---|---|
| Market Cap | $2.23T | $42.01B |
| Revenue (TTM) | $716.92B | $33.17B |
| Revenue Growth | 13.6% | 3.7% |
| Gross Margin | 50.3% | 41.5% |
| Operating Margin | 10.5% | 17.5% |
| Net Margin | 10.8% | 15.8% |
| Return on Equity | 22.3% | 25.7% |
| P/E (Trailing) | 29.0x | 8.3x |
| P/E (Forward) | 22.2x | 7.7x |
| Free Cash Flow | $23.79B | $3.27B |
| Cash | $123.03B | $10.42B |
| Total Debt | $178.55B | $12.30B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
Amazon
Amazon stands as the world's largest e-commerce and cloud computing company. Generating $716.92 billion in annual revenue (growing 13.6% year-over-year) and carrying a market capitalization of $2.35 trillion, the company has cemented its position as a foundational player in the global Internet Retail landscape. Under the leadership of Andy Jassy, Amazon continues to execute on a multi-year strategic vision that balances growth investment with sha…
Full Amazon analysis →PayPal Holdings
PayPal Holdings, Inc. stands as a leading company in Financial Services. Generating $33.17 billion in annual revenue (growing 3.7% year-over-year) and carrying a market capitalization of $44.57 billion, the company has cemented its position as a foundational player in the global Credit Services landscape. Under the leadership of its leadership team, PayPal Holdings, Inc. continues to execute on a multi-year strategic vision that balances growth i…
Full PayPal Holdings analysis →SWOT Analysis Comparison
Strengths
Amazon
- With a market capitalization of $2.35T, Amazon is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller co
- Amazon's gross margin of 50.3% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 10.5% demonstrates disciplined co
- Revenue grew 13.6% year-over-year to $716.92B, indicating strong demand for Amazon's products and services and outperformance relative to many industry peers.
PayPal Holdings
- PayPal Holdings, Inc.'s gross margin of 41.5% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 17.5% demonstrates
- A return on equity of 25.7% demonstrates that PayPal Holdings, Inc. generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
- PayPal Holdings, Inc. generated $3.27B in free cash flow, providing financial flexibility to invest in growth initiatives, return capital to shareholders, or strengthen the balance sheet.
Weaknesses
Amazon
- With 1,576,000 employees globally, Amazon faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler compet
- Core retail operates near breakeven — AWS and advertising subsidize the e-commerce business
- Labor costs and warehouse expansion create ongoing capital intensity
PayPal Holdings
- PayPal Holdings, Inc.'s debt-to-equity ratio of 60.7 indicates meaningful financial leverage. Total debt stands at $12.30B against $10.42B in cash and equivalents.
- Revenue growth of 3.7% is below what growth investors typically seek, suggesting market saturation in core businesses or increasing competitive pressure.
Opportunities
Amazon
- Amazon operates in the Internet Retail segment of the broader Consumer Cyclical sector, which represents a $28 trillion global consumer spending market. Even modest share gains in this environment tra
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Amazon'
- With $123.03B in cash and strong free cash flow generation, Amazon is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic reach.
PayPal Holdings
- PayPal Holdings, Inc. operates in the Credit Services segment of the broader Financial Services sector, which represents a $26.5 trillion global financial services market by 2028. Even modest share ga
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for PayPal
- Earnings growth of 39.4% YoY demonstrates PayPal Holdings, Inc.'s ability to convert revenue growth into shareholder value. Analysts project continued earnings expansion driven by operating leverage a
Threats
Amazon
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Amazon's revenue is not fully insulated from macroeconomic cycles, and a recession scenario
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Amazon's business m
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
PayPal Holdings
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. PayPal Holdings, Inc.'s revenue is not fully insulated from macroeconomic cycles, and a rece
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on PayPal Holdings, In
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
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Open Comparison ToolAmazon vs PayPal Holdings: FAQ
- Is Amazon bigger than PayPal Holdings?
- By market capitalization, Amazon is larger at $2.23T vs PayPal Holdings's $42.01B.
- Which has better profit margins — Amazon or PayPal Holdings?
- PayPal Holdings has higher net profit margins (15.8%) compared to Amazon (10.8%). Gross and operating margins are compared in the table above.
- What sectors do Amazon and PayPal Holdings operate in?
- Amazon operates in the Consumer Cyclical sector (Internet Retail). PayPal Holdings operates in the Financial Services sector (Credit Services).
- How does Amazon's revenue compare to PayPal Holdings's?
- Amazon generates $716.92B in annual revenue (TTM) while PayPal Holdings generates $33.17B. Amazon is the larger company by revenue as of 2026.