Affirm (AFRM) versus Its Peers Head to Head Survey

Affirm (NASDAQ: AFRM) is one of 217 publicly-traded companies in the “Business services, not elsewhere classified” industry, but how does it weigh in compared to its rivals? We will compare Affirm to similar businesses based on the strength of its valuation, earnings, institutional ownership, dividends, risk, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Affirm and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Affirm 1 5 8 0 2.50
Affirm Competitors 1153 5846 10933 315 2.57

Affirm presently has a consensus target price of $112.21, indicating a potential upside of 4.19%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 16.34%. Given Affirm’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Affirm has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

36.3% of Affirm shares are held by institutional investors. Comparatively, 57.0% of shares of all “Business services, not elsewhere classified” companies are held by institutional investors. 15.3% of shares of all “Business services, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Affirm and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Affirm -48.51% -60.43% -10.60%
Affirm Competitors -21.95% -11.05% -31.31%

Earnings and Valuation

This table compares Affirm and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Affirm $870.46 million -$430.92 million -42.40
Affirm Competitors $2.91 billion $320.21 million -247.63

Affirm’s rivals have higher revenue and earnings than Affirm. Affirm is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Affirm rivals beat Affirm on 10 of the 12 factors compared.

About Affirm

Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States and Canada. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its payments network and partnership with an originating bank, enables consumers to pay for a purchase over time with terms ranging from one to forty-eight months. As of September 30, 2020, the company had approximately 6,500 merchants integrated on its platform covering small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and companies. Its merchants represent a range of industries, including sporting goods and outdoors, furniture and homewares, travel, apparel, accessories, consumer electronics, and jewelry. The company was founded in 2012 and is headquartered in San Francisco, California.

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