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Affirm Holdings, Inc. (AFRM) vs PayPal Holdings, Inc. (PYPL)

Affirm Holdings, Inc. and PayPal Holdings, Inc. are both Credit Services companies. PayPal Holdings, Inc. is the larger, with a market value of $49.0B against $23.6B — 2.1× the size. PayPal Holdings, Inc. trades at the lower P/E: 11.2× against 11.8×. Affirm Holdings, Inc. grew revenue faster over the last twelve months: 32.7% against 4.36%. Affirm Holdings, Inc. has the higher net margin (43.9% vs 13.8%) and the lower return on invested capital (15.0% vs 16.1%). Across the 20 metrics below, PayPal Holdings, Inc. leads on 12 and Affirm Holdings, Inc. on 8.

Valuation

Metric AFRM PYPL Credit Services median
P/E 11.76 11.16 8.96
P/S 5.20 1.46 1.00
P/B 4.15 2.57 1.23
Price to free cash flow 29.23 7.92 2.55
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.50% 8.96% 7.17%
Free cash flow yield 3.42% 12.62% 11.75%

Profitability

Metric AFRM PYPL Credit Services median
Gross margin 0.00% 40.55% 76.61%
Operating margin 11.77% 16.99% 0.34%
Net margin 43.86% 13.78% 8.35%
Free cash flow margin 17.80% 18.43% 8.73%
Return on equity 44.49% 23.83% 9.05%
Return on assets 14.40% 5.86% 1.94%
Return on invested capital 15.03% 16.06% 4.56%

Growth

Metric AFRM PYPL Credit Services median
Revenue growth (TTM) 32.69% 4.36% 4.49%
EPS growth (last fiscal year) 3,586.67% 35.59% 21.94%
Revenue growth, 5-year CAGR 37.39% 9.11% 9.22%
Net income growth, 5-year CAGR 0.00% 4.49% 0.00%

Health

Metric AFRM PYPL Credit Services median
Debt to equity 0.00 0.69 0.69
Current ratio 11.80 1.26 1.26
Net debt to EBITDA 15.44 (0.06) 0.11

Dividend

Metric AFRM PYPL Credit Services median
Dividend yield — 0.95% 1.64%
Payout ratio — 0.11 0.21

Size

Metric AFRM PYPL Credit Services median
Market cap 23.62b 48.98b 759.73m

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