Affirm Holdings, Inc. (AFRM) vs Synchrony Financial (SYF)

Affirm Holdings, Inc. and Synchrony Financial are both Credit Services companies. Affirm Holdings, Inc. and Synchrony Financial are of similar size ($24.1B and $23.3B). Synchrony Financial trades at the lower P/E: 7.4× against 12.6×. Affirm Holdings, Inc. grew revenue faster over the last twelve months: 32.2% against 0.13%. Affirm Holdings, Inc. has the higher net margin (45.3% vs 14.8%) and the lower return on invested capital (2.16% vs 16.8%). Across the 21 metrics below, Synchrony Financial leads on 13 and Affirm Holdings, Inc. on 8.

Valuation

Metric AFRM SYF Credit Services median
P/E 12.56 7.40 9.64
P/S 5.64 1.04 0.87
P/B 4.38 1.59 1.16
Price to free cash flow 24.21 2.49 2.99
EV/EBITDA 71.79 n/m 9.58
EV/Sales 7.19 1.05 2.32
Earnings yield 7.96% 13.52% 6.72%
Free cash flow yield 4.13% 40.12% 12.33%

Profitability

Metric AFRM SYF Credit Services median
Gross margin 57.41% 83.05% 77.13%
Operating margin 9.79% 0.00% 0.34%
Net margin 45.29% 14.82% 9.25%
Free cash flow margin 23.30% 41.83% 13.03%
Return on equity 45.13% 22.23% 8.49%
Return on assets 14.32% 2.83% 2.29%
Return on invested capital 2.16% 16.83% 4.09%

Growth

Metric AFRM SYF Credit Services median
Revenue growth (TTM) 32.15% 0.13% 4.62%
EPS growth (last fiscal year) 3,586.67% 8.54% —
Revenue growth, 5-year CAGR 37.39% 7.02% 9.13%
Net income growth, 5-year CAGR 0.00% 20.90% 0.00%

Health

Metric AFRM SYF Credit Services median
Debt to equity 1.82 0.97 0.68
Current ratio 11.80 1.22 1.55
Net debt to EBITDA 15.44 0.00 0.13

Dividend

Metric AFRM SYF Credit Services median
Dividend yield — 2.63% 3.34%
Payout ratio 0.00 0.17 0.00

Size

Metric AFRM SYF Credit Services median
Market cap 24.05b 23.28b 872.19m

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