AFRM vs. APP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFRM and APP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AFRM | APP |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | AppLovin Corporation |
| Country | United States | United States |
| GICS Sector | Financials | Information Technology |
| GICS Industry | Financial Services | Software |
| Market Capitalization | 24.37 billion USD | 230.94 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | January 13, 2021 | April 15, 2021 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of AFRM and APP 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 | APP |
|---|---|---|
| 5-Day Price Return | -2.26% | -4.16% |
| 13-Week Price Return | 8.15% | 99.85% |
| 26-Week Price Return | 65.59% | 157.67% |
| 52-Week Price Return | 91.63% | 419.76% |
| Month-to-Date Return | 2.39% | -4.98% |
| Year-to-Date Return | 22.87% | 110.84% |
| 10-Day Avg. Volume | 7.39M | 7.08M |
| 3-Month Avg. Volume | 6.86M | 6.83M |
| 3-Month Volatility | 62.14% | 53.12% |
| Beta | 3.64 | 2.58 |
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.
APP
257.74%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
APP’s Return on Equity of 257.74% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
APP
45.72%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
A Net Profit Margin of 45.72% places APP in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
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.
APP
52.02%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
An Operating Profit Margin of 52.02% places APP in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AFRM | APP |
|---|---|---|
| Return on Equity (TTM) | 1.80% | 257.74% |
| Return on Assets (TTM) | 0.49% | 42.29% |
| Net Profit Margin (TTM) | 1.62% | 45.72% |
| Operating Profit Margin (TTM) | -0.29% | 52.02% |
| Gross Profit Margin (TTM) | 92.49% | 80.87% |
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.
APP
2.74
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
APP’s Current Ratio of 2.74 is in the upper quartile for the Software 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.
APP
3.01
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
With a Debt-to-Equity Ratio of 3.01, APP operates with exceptionally high leverage compared to the Software industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
APP
6.44
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
APP’s Interest Coverage Ratio of 6.44 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AFRM | APP |
|---|---|---|
| Current Ratio (MRQ) | 4.20 | 2.74 |
| Quick Ratio (MRQ) | 4.20 | 2.54 |
| Debt-to-Equity Ratio (MRQ) | 2.48 | 3.01 |
| Interest Coverage Ratio (TTM) | -3.76 | 6.44 |
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.
APP
0.00%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP 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.
APP
0.00%
Software Industry
- Max
- 3.29%
- Q3
- 2.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP 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 | APP |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
AFRM
466.96
Financial Services Industry
- Max
- 45.81
- Q3
- 30.21
- Median
- 16.29
- Q1
- 10.14
- Min
- 0.70
At 466.96, 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.
APP
95.06
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
A P/E Ratio of 95.06 places APP in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
AFRM
7.56
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.
APP
43.46
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
With a P/S Ratio of 43.46, APP trades at a valuation that eclipses even the highest in the Software 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.
APP
101.50
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
At 101.50, APP’s P/B Ratio is at an extreme premium to the Software 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 | APP |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 466.96 | 95.06 |
| Price-to-Sales Ratio (TTM) | 7.56 | 43.46 |
| Price-to-Book Ratio (MRQ) | 7.27 | 101.50 |
| Price-to-Free Cash Flow Ratio (TTM) | 40.50 | 79.77 |