AFRM vs. ARM: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AFRM and ARM, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
ARM stands out with 137.89 billion USD in market value—about 9.05× AFRM’s market cap of 15.24 billion USD.
With betas of 3.66 for AFRM and 4.41 for ARM, both show similar volatility profiles relative to the overall market.
ARM is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike AFRM, which is purely domestic.
| Symbol | AFRM | ARM |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | Arm Holdings plc American Depositary Shares |
| Country | US | GB |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Semiconductors |
| CEO | Mr. Max Roth Levchin | Mr. Rene Anthony Andrada Haas |
| Price | 47.24 USD | 130.45 USD |
| Market Cap | 15.24 billion USD | 137.89 billion USD |
| Beta | 3.66 | 4.41 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | January 13, 2021 | September 14, 2023 |
| ADR | No | Yes |
Performance Comparison
This chart compares the performance of AFRM and ARM over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
The section examines key financial ratios to assess the valuation of AFRM and ARM based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- AFRM has a negative P/E (-246.14) due to recent losses. In contrast, ARM commands a premium multiple of 170.26, signaling strong market confidence in its future earnings growth to justify this high valuation.
- AFRM posts a negative forward PEG of -1.38, hinting at anticipated earnings decline, whereas ARM at 6.09 has projections for stable or growing earnings.
| Symbol | AFRM | ARM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -246.14 | 170.26 |
| Forward PEG Ratio (TTM) | -1.38 | 6.09 |
| Price-to-Sales Ratio (P/S, TTM) | 5.07 | 37.33 |
| Price-to-Book Ratio (P/B, TTM) | 5.32 | 21.38 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 25.04 | 220.26 |
| EV-to-EBITDA (TTM) | 69.85 | 221.33 |
| EV-to-Sales (TTM) | 7.07 | 36.85 |
| EV-to-Free Cash Flow (TTM) | 34.90 | 217.45 |
Dividend Comparison
Neither AFRM nor ARM currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.
| Symbol | AFRM | ARM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AFRM and ARM, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- AFRM has negative EBIT (interest coverage -0.24), unable to cover interest, while ARM shows “--” (negligible interest expense).
| Symbol | AFRM | ARM |
|---|---|---|
| Current Ratio (TTM) | 63.09 | 4.96 |
| Quick Ratio (TTM) | 63.09 | 4.96 |
| Debt-to-Equity Ratio (TTM) | 2.56 | 0.04 |
| Debt-to-Assets Ratio (TTM) | 0.71 | 0.03 |
| Interest Coverage Ratio (TTM) | -0.24 | -- |