AFRM vs. DELL: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFRM and DELL, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
DELL’s market capitalization of 85.01 billion USD is significantly greater than AFRM’s 22.30 billion USD, highlighting its more substantial market valuation.
AFRM’s beta of 3.58 points to significantly higher volatility compared to DELL (beta: 1.09), suggesting AFRM has greater potential for both gains and losses relative to market movements.
| Symbol | AFRM | DELL |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | Dell Technologies Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Computer Hardware |
| CEO | Max Roth Levchin | Michael Saul Dell |
| Price | 69.19 USD | 125.22 USD |
| Market Cap | 22.30 billion USD | 85.01 billion USD |
| Beta | 3.58 | 1.09 |
| Exchange | NASDAQ | NYSE |
| IPO Date | January 13, 2021 | August 17, 2016 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AFRM and DELL 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.
Profitability
Return on Equity
AFRM
-2.22%
Software - Infrastructure Industry
- Max
- 80.61%
- Q3
- 29.97%
- Median
- 2.84%
- Q1
- -8.35%
- Min
- -56.26%
AFRM has a negative Return on Equity of -2.22%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
DELL
-189.86%
Computer Hardware Industry
- Max
- 123.03%
- Q3
- 15.78%
- Median
- -13.44%
- Q1
- -119.16%
- Min
- -227.95%
DELL has a negative Return on Equity of -189.86%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Return on Invested Capital
AFRM
-0.85%
Software - Infrastructure Industry
- Max
- 39.31%
- Q3
- 11.97%
- Median
- 1.67%
- Q1
- -7.10%
- Min
- -34.29%
AFRM has a negative Return on Invested Capital of -0.85%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
DELL
12.89%
Computer Hardware Industry
- Max
- 30.37%
- Q3
- 20.44%
- Median
- 7.03%
- Q1
- -12.47%
- Min
- -31.70%
DELL’s Return on Invested Capital of 12.89% is in line with the norm for the Computer Hardware industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
AFRM
-2.07%
Software - Infrastructure Industry
- Max
- 46.46%
- Q3
- 14.65%
- Median
- 2.66%
- Q1
- -7.70%
- Min
- -35.45%
AFRM has a negative Net Profit Margin of -2.07%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
DELL
4.75%
Computer Hardware Industry
- Max
- 40.72%
- Q3
- 10.87%
- Median
- 4.33%
- Q1
- -378.64%
- Min
- -753.20%
DELL’s Net Profit Margin of 4.75% is aligned with the median group of its peers in the Computer Hardware industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AFRM
-2.53%
Software - Infrastructure Industry
- Max
- 48.51%
- Q3
- 16.56%
- Median
- 4.48%
- Q1
- -6.43%
- Min
- -40.18%
AFRM has a negative Operating Profit Margin of -2.53%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
DELL
6.70%
Computer Hardware Industry
- Max
- 42.27%
- Q3
- 13.53%
- Median
- 4.56%
- Q1
- -295.01%
- Min
- -592.84%
DELL’s Operating Profit Margin of 6.70% is around the midpoint for the Computer Hardware industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AFRM | DELL |
|---|---|---|
| Return on Equity (TTM) | -2.22% | -189.86% |
| Return on Assets (TTM) | -0.60% | 5.29% |
| Return on Invested Capital (TTM) | -0.85% | 12.89% |
| Net Profit Margin (TTM) | -2.07% | 4.75% |
| Operating Profit Margin (TTM) | -2.53% | 6.70% |
| Gross Profit Margin (TTM) | 71.61% | 22.11% |
Financial Strength
Current Ratio
AFRM
63.09
Software - Infrastructure Industry
- Max
- 3.80
- Q3
- 2.25
- Median
- 1.51
- Q1
- 1.10
- Min
- 0.23
AFRM’s Current Ratio of 63.09 is exceptionally high, placing it well outside the typical range for the Software - Infrastructure industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
DELL
0.85
Computer Hardware Industry
- Max
- 20.73
- Q3
- 11.54
- Median
- 2.69
- Q1
- 1.40
- Min
- 0.73
DELL’s Current Ratio of 0.85 falls into the lower quartile for the Computer Hardware industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AFRM
2.56
Software - Infrastructure Industry
- Max
- 2.56
- Q3
- 1.12
- Median
- 0.33
- Q1
- 0.05
- Min
- 0.00
AFRM’s leverage is in the upper quartile of the Software - Infrastructure industry, with a Debt-to-Equity Ratio of 2.56. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
DELL
-9.52
Computer Hardware Industry
- Max
- 1.36
- Q3
- 0.67
- Median
- 0.04
- Q1
- 0.03
- Min
- 0.00
DELL has a Debt-to-Equity Ratio of -9.52, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
Interest Coverage Ratio
AFRM
-0.24
Software - Infrastructure Industry
- Max
- 32.21
- Q3
- 5.24
- Median
- 0.95
- Q1
- -17.99
- Min
- -50.82
AFRM has a negative Interest Coverage Ratio of -0.24. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
DELL
4.56
Computer Hardware Industry
- Max
- 32.50
- Q3
- 21.85
- Median
- 4.98
- Q1
- -7.71
- Min
- -34.24
DELL’s Interest Coverage Ratio of 4.56 is positioned comfortably within the norm for the Computer Hardware industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AFRM | DELL |
|---|---|---|
| Current Ratio (TTM) | 63.09 | 0.85 |
| Quick Ratio (TTM) | 63.09 | 0.70 |
| Debt-to-Equity Ratio (TTM) | 2.56 | -9.52 |
| Debt-to-Asset Ratio (TTM) | 0.71 | 0.33 |
| Net Debt-to-EBITDA Ratio (TTM) | 19.75 | 2.09 |
| Interest Coverage Ratio (TTM) | -0.24 | 4.56 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AFRM and DELL. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AFRM
0.00%
Software - Infrastructure Industry
- Max
- 4.07%
- Q3
- 0.00%
- Median
- 0.00%
- 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.
DELL
1.49%
Computer Hardware Industry
- Max
- 9.24%
- Q3
- 1.58%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
DELL’s Dividend Yield of 1.49% is consistent with its peers in the Computer Hardware industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AFRM
0.00%
Software - Infrastructure Industry
- Max
- 48.68%
- Q3
- 0.00%
- Median
- 0.00%
- 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.
DELL
29.04%
Computer Hardware Industry
- Max
- 193.79%
- Q3
- 30.72%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
DELL’s Dividend Payout Ratio of 29.04% is within the typical range for the Computer Hardware industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AFRM | DELL |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.49% |
| Dividend Payout Ratio (TTM) | 0.00% | 29.04% |
Valuation
Price-to-Earnings Ratio
AFRM
-360.51
Software - Infrastructure Industry
- Max
- 107.77
- Q3
- 54.40
- Median
- 28.10
- Q1
- 18.03
- Min
- 5.32
AFRM has a negative P/E Ratio of -360.51. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
DELL
18.85
Computer Hardware Industry
- Max
- 24.60
- Q3
- 24.01
- Median
- 20.31
- Q1
- 18.24
- Min
- 13.38
DELL’s P/E Ratio of 18.85 is within the middle range for the Computer Hardware industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AFRM
-6.16
Software - Infrastructure Industry
- Max
- 8.12
- Q3
- 3.94
- Median
- 2.13
- Q1
- 0.94
- Min
- 0.01
AFRM has a negative Forward PEG Ratio of -6.16. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
DELL
1.58
Computer Hardware Industry
- Max
- 9.77
- Q3
- 5.18
- Median
- 1.77
- Q1
- 1.17
- Min
- 0.02
The Forward PEG Ratio is often not a primary valuation metric in the Computer Hardware industry.
Price-to-Sales Ratio
AFRM
7.42
Software - Infrastructure Industry
- Max
- 18.25
- Q3
- 9.05
- Median
- 4.77
- Q1
- 2.30
- Min
- 0.11
AFRM’s P/S Ratio of 7.42 aligns with the market consensus for the Software - Infrastructure industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
DELL
0.88
Computer Hardware Industry
- Max
- 57.61
- Q3
- 47.40
- Median
- 3.37
- Q1
- 1.56
- Min
- 0.43
In the lower quartile for the Computer Hardware industry, DELL’s P/S Ratio of 0.88 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio
AFRM
7.80
Software - Infrastructure Industry
- Max
- 19.94
- Q3
- 10.91
- Median
- 6.33
- Q1
- 2.95
- Min
- 0.51
The P/B Ratio is often not a primary valuation metric for the Software - Infrastructure industry.
DELL
-28.65
Computer Hardware Industry
- Max
- 21.21
- Q3
- 14.71
- Median
- 9.28
- Q1
- 3.74
- Min
- 0.43
DELL has a negative P/B Ratio of -28.65, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.
Valuation at a Glance
| Symbol | AFRM | DELL |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -360.51 | 18.85 |
| Forward PEG Ratio (TTM) | -6.16 | 1.58 |
| Price-to-Sales Ratio (P/S, TTM) | 7.42 | 0.88 |
| Price-to-Book Ratio (P/B, TTM) | 7.80 | -28.65 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 36.63 | 23.29 |
| EV-to-EBITDA (TTM) | 93.06 | 10.54 |
| EV-to-Sales (TTM) | 9.41 | 1.10 |