The choice of planting material has an important bearing on the profitability of a planting. This is because it is a “one off” decision and once planted, a planter has to live with it for the entire lifespan of the planting. Clonal palms have been reported to be superior to DxP hybrids in both fresh fruit bunch (FFB) yields and oil extraction rates (OER) and are sold at more than 10 times the price of the latter. The question of what is a fair price to pay for clonal palms is an issue of much debate. The net present value ratio (NPVR) between clonal palms and DxP hybrids was used to evaluate their comparative profitability. Initially, net present value (NPV) for 162 combinations comprising three levels each of clonal palm price (RM15, 20 and 30 per acclimatised bare root ramet), FFB yield, OER and palm products price (crude palm oil, CPO at RM800, 1100 and 1400 per tonne and palm kernel, PK at RM480, 660 and 840 per tonne), and two levels of discounting rates at 5 and 10 per cent. Clonal palm was assumed to be 5, 10 and 15 per cent better than DxP hybrid in both FFB yield and OER. DxP hybrid was priced at RM1 per germinated seed. At long term low CPO and PK prices (RM800 and 480 per tonne respectively), negative NPV was recorded in all but three of the 54 combinations evaluated, indicating that it is not profitable to plant either DxP hybrids or clonal palms in 94 per cent of the cases evaluated. Hence NPVR was computed for the balance of the 108 combinations at long term medium and high palm product prices only. Between DxP hybrids and clonal palms, the latter would be more profitable in 97, 94 and 81 per cent of the time at clonal palm prices of RM15, 20 and 30 respectively. Therefore, it would be worth paying a higher price for superior clonal palms in most of the cases. This is particularly true for clones with high OER as an increase in OER has a more favourable impact than a similar increase in FFB yield. This is expected as the former will lead to higher CPO yield without incurring additional harvesting and transport cost and savings in processing cost. The internal rate of return (IRR) and discounted payback period (PBP) were also computed as supporting economic criteria. At medium and high palm product prices, IRR is higher than the cut-off rate of 10% throughout with the highest value of 23.2 per cent, while PBP varied from 7 to 22 years. Keywords: Clonal oil palm versus DxP hybrid, net present value ratio, internal rate of return, payback period.