Block Stock has an awful risk/reward ratio.
Without Bitcoin Revenue and Cost of Bitcoin Revenue (A seemingly strange addition to a financial statement), Block has only 7.6b in revenue for FY21. While growth is still seemingly good, gross profit margins are 24.39%, and net margins are 0.93%.
Paypal on the other hand has a 47.38% gross margin and a 16.31% net margin, competing in similar fields (Clover deal for PoS). They are already a 20%+ free cash flow margin machine. Plus, they have an Amazon deal on the way. All the while, they are at 25b in annual revenue.
Block is focused too broadly, and it's becoming increasingly confusing on how to describe Block. Is it a PoS company? A crpyto company?
Enterprise Value of PYPL: 128.8B
Enterprise Value of SQ: 71.33B
Seems like everyone has a lot of high hopes for SQ to execute on everything.
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