AFRM vs. FICO: A Head-to-Head Stock Comparison

Company Overview

FICO’s market capitalization of 43.09 billion USD is significantly greater than AFRM’s 19.79 billion USD, highlighting its more substantial market valuation.

AFRM’s beta of 3.58 points to significantly higher volatility compared to FICO (beta: 1.29), suggesting AFRM has greater potential for both gains and losses relative to market movements.

Performance Comparison

This chart compares the performance of AFRM and FICO over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of AFRM and FICO. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• AFRM’s Price-to-Earnings (P/E) ratio of -319.60 indicates negative earnings, signaling current unprofitability. FICO, with a very high P/E ratio of 74.81, appears to have a valuation that either is significantly stretched or reflects high expectations for substantial future growth.
• AFRM’s Forward PEG ratio of -1.74 is negative. This typically points to concerns such as negative earnings or projections of contracting growth, complicating valuation. FICO’s Forward PEG ratio of 3.55 is very high, indicating its stock price may be significantly outpacing its expected earnings growth and potentially signaling an overstretched valuation.

Dividend Comparison

Neither AFRM nor FICO currently pays a dividend; this often suggests they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

Financial Strength Metrics Comparison

This section evaluates the financial strength of AFRM and FICO. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• AFRM’s Debt-to-Equity (D/E) ratio of 2.56 is very high, signifying a heavy reliance on debt and a high degree of financial leverage. FICO’s D/E ratio of -2.27 reflects negative shareholder equity, a severe condition that undermines its financial foundation.
• AFRM’s Interest Coverage Ratio (ICR) of -0.24 is negative. This implies its operating earnings are insufficient to meet its interest expenses, a serious situation that threatens its financial stability and capacity to honor debt commitments.