AFRM vs. EA: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AFRM and EA, 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
EA stands out with 37.74 billion USD in market value—about 2.48× AFRM’s market cap of 15.24 billion USD.
AFRM’s beta of 3.66 points to much larger expected swings compared to EA’s calmer 0.75, suggesting both higher upside and downside potential.
| Symbol | AFRM | EA |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | Electronic Arts Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Electronic Gaming & Multimedia |
| CEO | Mr. Max Roth Levchin | Mr. Andrew Wilson |
| Price | 47.24 USD | 150.5 USD |
| Market Cap | 15.24 billion USD | 37.74 billion USD |
| Beta | 3.66 | 0.75 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | January 13, 2021 | September 20, 1989 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AFRM and EA 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 EA based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- AFRM posts a negative P/E of -246.14, reflecting last year’s net loss, while EA at 35.17 signals healthy earnings.
- AFRM posts a negative forward PEG of -1.38, hinting at anticipated earnings decline, whereas EA at 1.86 has projections for stable or growing earnings.
| Symbol | AFRM | EA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -246.14 | 35.17 |
| Forward PEG Ratio (TTM) | -1.38 | 1.86 |
| Price-to-Sales Ratio (P/S, TTM) | 5.07 | 5.06 |
| Price-to-Book Ratio (P/B, TTM) | 5.32 | 6.17 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 25.04 | 20.31 |
| EV-to-EBITDA (TTM) | 69.85 | 20.20 |
| EV-to-Sales (TTM) | 7.07 | 5.04 |
| EV-to-Free Cash Flow (TTM) | 34.90 | 20.21 |
Dividend Comparison
AFRM offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while EA provides a 0.50% dividend yield, giving investors a steady income stream.
| Symbol | AFRM | EA |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.50% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AFRM and EA, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- EA’s current ratio of 0.95 indicates its assets may not cover near-term debts, whereas AFRM at 63.09 maintains healthy liquidity.
- With negative EBIT (-0.24), AFRM cannot cover its interest payments. EA, with an interest coverage of 20.61, meets its interest obligations.
| Symbol | AFRM | EA |
|---|---|---|
| Current Ratio (TTM) | 63.09 | 0.95 |
| Quick Ratio (TTM) | 63.09 | 0.95 |
| Debt-to-Equity Ratio (TTM) | 2.56 | 0.31 |
| Debt-to-Assets Ratio (TTM) | 0.71 | 0.16 |
| Interest Coverage Ratio (TTM) | -0.24 | 20.61 |