AFRM vs. FOUR: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFRM and FOUR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AFRM’s market capitalization of 22.30 billion USD is substantially larger than FOUR’s 9.04 billion USD, indicating a significant difference in their market valuations.
AFRM’s beta of 3.58 points to significantly higher volatility compared to FOUR (beta: 1.82), suggesting AFRM has greater potential for both gains and losses relative to market movements.
| Symbol | AFRM | FOUR |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | Shift4 Payments, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Software - Infrastructure |
| CEO | Max Roth Levchin | Jared Isaacman |
| Price | 69.19 USD | 101.8 USD |
| Market Cap | 22.30 billion USD | 9.04 billion USD |
| Beta | 3.58 | 1.82 |
| Exchange | NASDAQ | NYSE |
| IPO Date | January 13, 2021 | June 5, 2020 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AFRM and FOUR 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.
FOUR
27.95%
Software - Infrastructure Industry
- Max
- 80.61%
- Q3
- 29.97%
- Median
- 2.84%
- Q1
- -8.35%
- Min
- -56.26%
FOUR’s Return on Equity of 27.95% is on par with the norm for the Software - Infrastructure industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
FOUR
-82.03%
Software - Infrastructure Industry
- Max
- 39.31%
- Q3
- 11.97%
- Median
- 1.67%
- Q1
- -7.10%
- Min
- -34.29%
FOUR has a negative Return on Invested Capital of -82.03%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
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.
FOUR
6.29%
Software - Infrastructure Industry
- Max
- 46.46%
- Q3
- 14.65%
- Median
- 2.66%
- Q1
- -7.70%
- Min
- -35.45%
FOUR’s Net Profit Margin of 6.29% is aligned with the median group of its peers in the Software - Infrastructure 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.
FOUR
7.23%
Software - Infrastructure Industry
- Max
- 48.51%
- Q3
- 16.56%
- Median
- 4.48%
- Q1
- -6.43%
- Min
- -40.18%
FOUR’s Operating Profit Margin of 7.23% is around the midpoint for the Software - Infrastructure industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AFRM | FOUR |
|---|---|---|
| Return on Equity (TTM) | -2.22% | 27.95% |
| Return on Assets (TTM) | -0.60% | 4.36% |
| Return on Invested Capital (TTM) | -0.85% | -82.03% |
| Net Profit Margin (TTM) | -2.07% | 6.29% |
| Operating Profit Margin (TTM) | -2.53% | 7.23% |
| Gross Profit Margin (TTM) | 71.61% | 27.07% |
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.
FOUR
1.36
Software - Infrastructure Industry
- Max
- 3.80
- Q3
- 2.25
- Median
- 1.51
- Q1
- 1.10
- Min
- 0.23
FOUR’s Current Ratio of 1.36 aligns with the median group of the Software - Infrastructure industry, indicating that its short-term liquidity is in line with its sector peers.
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.
FOUR
3.58
Software - Infrastructure Industry
- Max
- 2.56
- Q3
- 1.12
- Median
- 0.33
- Q1
- 0.05
- Min
- 0.00
With a Debt-to-Equity Ratio of 3.58, FOUR operates with exceptionally high leverage compared to the Software - Infrastructure industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
FOUR
3.05
Software - Infrastructure Industry
- Max
- 32.21
- Q3
- 5.24
- Median
- 0.95
- Q1
- -17.99
- Min
- -50.82
FOUR’s Interest Coverage Ratio of 3.05 is positioned comfortably within the norm for the Software - Infrastructure industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AFRM | FOUR |
|---|---|---|
| Current Ratio (TTM) | 63.09 | 1.36 |
| Quick Ratio (TTM) | 63.09 | 1.36 |
| Debt-to-Equity Ratio (TTM) | 2.56 | 3.58 |
| Debt-to-Asset Ratio (TTM) | 0.71 | 0.58 |
| Net Debt-to-EBITDA Ratio (TTM) | 19.75 | -4.69 |
| Interest Coverage Ratio (TTM) | -0.24 | 3.05 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AFRM and FOUR. 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.
FOUR
0.00%
Software - Infrastructure Industry
- Max
- 4.07%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
FOUR 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
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.
FOUR
0.00%
Software - Infrastructure Industry
- Max
- 48.68%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
FOUR 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 | FOUR |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
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.
FOUR
31.56
Software - Infrastructure Industry
- Max
- 107.77
- Q3
- 54.40
- Median
- 28.10
- Q1
- 18.03
- Min
- 5.32
FOUR’s P/E Ratio of 31.56 is within the middle range for the Software - Infrastructure 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.
FOUR
1.96
Software - Infrastructure Industry
- Max
- 8.12
- Q3
- 3.94
- Median
- 2.13
- Q1
- 0.94
- Min
- 0.01
FOUR’s Forward PEG Ratio of 1.96 is within the middle range of its peers in the Software - Infrastructure industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
FOUR
3.43
Software - Infrastructure Industry
- Max
- 18.25
- Q3
- 9.05
- Median
- 4.77
- Q1
- 2.30
- Min
- 0.11
FOUR’s P/S Ratio of 3.43 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.
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.
FOUR
8.56
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.
Valuation at a Glance
| Symbol | AFRM | FOUR |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -360.51 | 31.56 |
| Forward PEG Ratio (TTM) | -6.16 | 1.96 |
| Price-to-Sales Ratio (P/S, TTM) | 7.42 | 3.43 |
| Price-to-Book Ratio (P/B, TTM) | 7.80 | 8.56 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 36.63 | 25.19 |
| EV-to-EBITDA (TTM) | 93.06 | -37.24 |
| EV-to-Sales (TTM) | 9.41 | 3.92 |