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Zip vs Block shares: Which payments stock stacks up best?
When it comes to payments stocks on the ASX, Zip Co Ltd (ASX: ZIP) and Block Inc (ASX: XYZ) catch the eye for anyone watching the fast-moving world of digital money and buy-now, pay-later (BNPL) services. With both companies offering innovative ways for consumers and businesses to handle payments, everyday investors might be weighing Zip and Block against each other for their next portfolio move. Here's how they compare on the fundamentals, value, and recent share price action.
The case for Zip
Zip is an Australian financial technology business focused on disrupting the traditional credit card and payments market. Zip operates in Australia, New Zealand, the United States, and 12 countries altogether, offering point-of-sale credit and BNPL services through products like Zip Money and Zip Pay. Founded in 2013, the company's core pitch is to give shoppers more flexibility and an alternative to old-school credit cards.
Looking at the fundamentals:
- Market cap stands at $2.58 billion, so it's a mid-cap ASX player with solid reach.
- Zip's P/E ratio is 22.63, which is at the lower end for a payments or fintech stock, potentially signalling more attractive value compared to fast-growth peers.
- Earnings per share come in at $0.091, supporting its move toward profitability.
Dividend hunters won't find much here, though — Zip currently pays no dividend.
The case for Block
Block formerly known as Square, was originally a US payments upstart. Now, it's a global force in payments tech, offering everything from merchant point-of-sale solutions to Cash App for peer-to-peer payments, as well as hosting platforms like Weebly. In 2022, Block snapped up Aussie juggernaut Afterpay in a headline-making deal, adding serious BNPL firepower to its roster. The business is dual-listed in the US and Australia, catering to a broad investor base.
Key stats for Block Inc:
- Its market cap is a substantial $4.21 billion, making it notably bigger than Zip on the ASX stage.
- The P/E ratio is 132.23, vastly higher than Zip's, which indicates investors are pricing in a lot of future growth or that current profits are relatively slim compared to the company's valuation.
- Earnings per share are showing at $0.560.
Block also offers no dividend at this time.
Valuation comparison
With three key valuation metrics available for both, here's how Zip and Block stack up:
| Metric | Zip | Block |
|---|---|---|
| Market Cap | $2.58 billion | $4.21 billion |
| P/E Ratio | 22.63 | 132.23 |
| Earnings per Share | $0.091 | $0.560 |
| Dividend Yield | 0.00% | 0.00% |
| Year To Date Return | -37.7% | 9.0% |
Note: Block Inc's reported P/E appears very high compared to its EPS, suggesting investors are paying a heavy premium for expected growth and the Afterpay component. Both companies are not offering dividends right now.
Recent share price momentum
To line things up evenly, let's use 2 October 2026 as the most recent shared date both companies have closing prices for. Here's what the short-term momentum looks like as of that date:
- Zip: Closed at $2.07 on 2 Oct 2026, up 3.5% from the previous close. Despite the daily bounce, its year-to-date return sits deeply in the red at -37.7% — meaning Zip shares have struggled significantly so far this year.
- Block: Closed at $106.62 on 2 Oct 2026, up 0.7% on the day. Block, on the other hand, has delivered a positive year-to-date return of 9.0%, showing stronger recent momentum versus Zip.
Which is the better buy?
Looking at the numbers, I'd lean toward Block as the pick of these two payments stocks right now. The decisive factor for me is the year-to-date performance: Block shares have pushed ahead nearly 9%, while Zip is down a hefty 37.7%. That sort of divergence tells me Block is winning investor confidence and, crucially, executing better in this tough market for fintechs.
Yes, Block's P/E ratio is sky-high at 132, and that does make me pause — but with its diversified business, global scale, and the Afterpay acquisition now bedded down, I can see why the market is backing Block for future earnings growth. Zip is fighting hard and has managed to move towards profitability, but its steep price decline and smaller scale leave me with less confidence, at least based on the data I have in front of me.
Of course, neither company is paying shareholders a dividend, so it's really about capital growth potential. On current fundamentals and recent momentum, Block gets my vote as the more compelling buy.
