Contrasting Affirm (NASDAQ:AFRM) and Paypoint (OTCMKTS:PYPTF)

Paypoint (OTCMKTS:PYPTF) and Affirm (NASDAQ:AFRM) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Paypoint and Affirm, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paypoint	0	0	0	0	0.00
Affirm	0	7	22	2	2.84

Affirm has a consensus target price of $93.15, indicating a potential upside of 18.89%. Given Affirm’s stronger consensus rating and higher probable upside, analysts plainly believe Affirm is more favorable than Paypoint.

Institutional & Insider Ownership

69.3% of Affirm shares are owned by institutional investors. 11.0% of Affirm shares are owned by 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.

Profitability

This table compares Paypoint and Affirm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paypoint	N/A	N/A	N/A
Affirm	9.63%	11.17%	3.14%

Volatility and Risk

Paypoint has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Affirm has a beta of 3.71, indicating that its share price is 271% more volatile than the S&P 500.

Earnings and Valuation

This table compares Paypoint and Affirm”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paypoint	$451.69 million	1.20	$52.72 million	N/A	N/A
Affirm	$3.24 billion	8.09	$52.19 million	$1.10	71.23

Paypoint has higher earnings, but lower revenue than Affirm.

Summary

Affirm beats Paypoint on 12 of the 13 factors compared between the two stocks.

About Paypoint

PayPoint plc engages in the provision of payments and banking, shopping, and e-commerce services and products in the United Kingdom. The company operates through two segments: PayPoint and Love2shop. The PayPoint segment provides card payment services to retailers, including leased payment devices; EPoS; ATM cash machines; SIM cards sales; receipt advertising; bill payment services and cash top-ups to individual consumers; parcel delivery and collection services; retailer service fees solutions; and digital payment services, as well as cash through to digital services. The segment offers its products under PayPoint One, eMoney, MultiPay, CashOut, and Direct Debits platforms. The Love2shop segment is involved in the provision of shopping vouchers, cards, and e-codes which customers may redeem with participating retailers; and Christmas savings club, to which customers make regular payments throughout the year to help spread the cost of Christmas, before converting to a voucher. It serves consumers, SMEs, and convenience retailers in the commercial, not-for-profit, and public sectors. The company was founded in 1996 and is headquartered in Welwyn Garden City, the United Kingdom.

About Affirm

Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time with terms ranging up to 60 months. The company has active merchants covering small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and companies with an omni-channel presence. Its merchants represent a range of industries, including sporting goods and outdoors, furniture and homewares, travel and ticketing, apparel, accessories, consumer electronics, and jewelry. Affirm Holdings, Inc. was founded in 2012 and is headquartered in San Francisco, California.