AFRM vs. ANET: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFRM and ANET, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AFRM | ANET |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | Arista Networks Inc |
| Country | United States | United States |
| GICS Sector | Financials | Information Technology |
| GICS Industry | Financial Services | Communications Equipment |
| Market Capitalization | 24.51 billion USD | 197.78 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | January 13, 2021 | June 6, 2014 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of AFRM and ANET by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | AFRM | ANET |
|---|---|---|
| 5-Day Price Return | -2.82% | 8.93% |
| 13-Week Price Return | 8.95% | 48.06% |
| 26-Week Price Return | 93.40% | 120.79% |
| 52-Week Price Return | 94.95% | 60.34% |
| Month-to-Date Return | 2.97% | 8.00% |
| Year-to-Date Return | 23.56% | 42.37% |
| 10-Day Avg. Volume | 6.85M | 7.36M |
| 3-Month Avg. Volume | 6.87M | 9.31M |
| 3-Month Volatility | 61.23% | 51.95% |
| Beta | 3.64 | 1.39 |
Profitability
Return on Equity (TTM)
AFRM
1.80%
Financial Services Industry
- Max
- 39.28%
- Q3
- 18.88%
- Median
- 9.97%
- Q1
- 4.03%
- Min
- -10.25%
AFRM’s Return on Equity of 1.80% is in the lower quartile for the Financial Services industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
ANET
32.30%
Communications Equipment Industry
- Max
- 32.30%
- Q3
- 20.90%
- Median
- 9.10%
- Q1
- 4.29%
- Min
- -13.50%
In the upper quartile for the Communications Equipment industry, ANET’s Return on Equity of 32.30% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
AFRM
1.62%
Financial Services Industry
- Max
- 52.16%
- Q3
- 25.35%
- Median
- 12.68%
- Q1
- 6.11%
- Min
- -11.69%
Falling into the lower quartile for the Financial Services industry, AFRM’s Net Profit Margin of 1.62% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
ANET
40.89%
Communications Equipment Industry
- Max
- 23.65%
- Q3
- 12.56%
- Median
- 5.62%
- Q1
- 2.50%
- Min
- -3.09%
ANET’s Net Profit Margin of 40.89% is exceptionally high, placing it well beyond the typical range for the Communications Equipment industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
AFRM
-0.29%
Financial Services Industry
- Max
- 75.57%
- Q3
- 37.78%
- Median
- 19.09%
- Q1
- 10.04%
- Min
- -19.42%
AFRM has a negative Operating Profit Margin of -0.29%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
ANET
43.14%
Communications Equipment Industry
- Max
- 25.23%
- Q3
- 13.72%
- Median
- 6.44%
- Q1
- 3.00%
- Min
- -10.95%
ANET’s Operating Profit Margin of 43.14% is exceptionally high, placing it well above the typical range for the Communications Equipment industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | AFRM | ANET |
|---|---|---|
| Return on Equity (TTM) | 1.80% | 32.30% |
| Return on Assets (TTM) | 0.49% | 22.45% |
| Net Profit Margin (TTM) | 1.62% | 40.89% |
| Operating Profit Margin (TTM) | -0.29% | 43.14% |
| Gross Profit Margin (TTM) | 92.49% | 64.24% |
Financial Strength
Current Ratio (MRQ)
AFRM
4.20
Financial Services Industry
- Max
- 4.83
- Q3
- 2.70
- Median
- 1.44
- Q1
- 0.86
- Min
- 0.01
For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
ANET
3.33
Communications Equipment Industry
- Max
- 3.33
- Q3
- 2.13
- Median
- 1.55
- Q1
- 1.15
- Min
- 0.91
ANET’s Current Ratio of 3.33 is in the upper quartile for the Communications Equipment industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
AFRM
2.48
Financial Services Industry
- Max
- 5.07
- Q3
- 2.14
- Median
- 0.66
- Q1
- 0.12
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.
ANET
0.00
Communications Equipment Industry
- Max
- 1.44
- Q3
- 0.86
- Median
- 0.53
- Q1
- 0.22
- Min
- 0.00
Falling into the lower quartile for the Communications Equipment industry, ANET’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
AFRM
-3.76
Financial Services Industry
- Max
- 136.23
- Q3
- 56.08
- Median
- 6.55
- Q1
- 2.01
- Min
- -33.27
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.
ANET
171.78
Communications Equipment Industry
- Max
- 55.49
- Q3
- 34.19
- Median
- 7.59
- Q1
- 3.73
- Min
- -9.94
With an Interest Coverage Ratio of 171.78, ANET demonstrates a superior capacity to service its debt, placing it well above the typical range for the Communications Equipment industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | AFRM | ANET |
|---|---|---|
| Current Ratio (MRQ) | 4.20 | 3.33 |
| Quick Ratio (MRQ) | 4.20 | 2.58 |
| Debt-to-Equity Ratio (MRQ) | 2.48 | 0.00 |
| Interest Coverage Ratio (TTM) | -3.76 | 171.78 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
AFRM
0.00%
Financial Services Industry
- Max
- 8.12%
- Q3
- 3.37%
- Median
- 1.70%
- Q1
- 0.00%
- Min
- 0.00%
AFRM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
ANET
0.00%
Communications Equipment Industry
- Max
- 8.13%
- Q3
- 3.29%
- Median
- 0.94%
- Q1
- 0.00%
- Min
- 0.00%
ANET currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
AFRM
0.00%
Financial Services Industry
- Max
- 132.10%
- Q3
- 64.32%
- Median
- 18.23%
- Q1
- 0.00%
- Min
- 0.00%
AFRM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
ANET
0.00%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 70.91%
- Median
- 30.78%
- Q1
- 0.00%
- Min
- 0.00%
ANET has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | AFRM | ANET |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
AFRM
469.59
Financial Services Industry
- Max
- 45.81
- Q3
- 30.21
- Median
- 16.29
- Q1
- 10.14
- Min
- 0.70
At 469.59, AFRM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
ANET
56.16
Communications Equipment Industry
- Max
- 103.74
- Q3
- 61.65
- Median
- 26.20
- Q1
- 18.12
- Min
- 4.19
ANET’s P/E Ratio of 56.16 is within the middle range for the Communications Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
AFRM
7.60
Financial Services Industry
- Max
- 10.88
- Q3
- 5.34
- Median
- 2.64
- Q1
- 1.24
- Min
- 0.06
The P/S Ratio is often not a primary valuation tool in the Financial Services industry.
ANET
22.97
Communications Equipment Industry
- Max
- 6.86
- Q3
- 6.24
- Median
- 2.44
- Q1
- 1.02
- Min
- 0.48
With a P/S Ratio of 22.97, ANET trades at a valuation that eclipses even the highest in the Communications Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
AFRM
7.27
Financial Services Industry
- Max
- 7.93
- Q3
- 3.78
- Median
- 1.49
- Q1
- 0.88
- Min
- 0.08
AFRM’s P/B Ratio of 7.27 is in the upper tier for the Financial Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
ANET
11.79
Communications Equipment Industry
- Max
- 6.28
- Q3
- 5.73
- Median
- 3.32
- Q1
- 2.02
- Min
- 0.42
At 11.79, ANET’s P/B Ratio is at an extreme premium to the Communications Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AFRM | ANET |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 469.59 | 56.16 |
| Price-to-Sales Ratio (TTM) | 7.60 | 22.97 |
| Price-to-Book Ratio (MRQ) | 7.27 | 11.79 |
| Price-to-Free Cash Flow Ratio (TTM) | 40.73 | 45.94 |