AFRM vs. HLI: Affirm vs. Houlihan Lokey Stock Comparison
How do Affirm (AFRM) and Houlihan Lokey (HLI) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Affirm (AFRM) and Houlihan Lokey (HLI) both fall under the Financial Services industry group, but AFRM is classified in Financial Services while HLI is classified in Capital Markets.
| Profile Item | AFRM | HLI |
|---|---|---|
| Name | Affirm Holdings, Inc. | Houlihan Lokey, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Financials | Financials |
| GICS Industry Group | Financial Services | Financial Services |
| GICS Industry | Financial Services | Capital Markets |
| GICS Sub-Industry | Transaction & Payment Processing Services | Investment Banking & Brokerage |
| Market Capitalization | 23.09 billion USD | 10.13 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | January 13, 2021 | August 13, 2015 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | AFRM | HLI |
|---|---|---|
| Total Return (1Y) | -6.89% | -16.23% |
| Total Return (3Y, Annualized) | 40.23% | 15.13% |
| Total Return (5Y, Annualized) | -15.36% | 6.74% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
Affirm (AFRM) carries a highly aggressive beta of 3.70, indicating much higher sensitivity to broad-market moves, whereas Houlihan Lokey (HLI) is closer to market-like at 0.87 — a noticeable difference in market-sensitivity profile.
| Metric | AFRM | HLI |
|---|---|---|
| Volatility (1Y, Annualized) | 58.20% | 31.00% |
| Beta (5Y) | 3.70 | 0.87 |
| Max Drawdown (5Y) | -94.35% | -40.30% |
| Avg. Volume (3M) | 4.46M | 816.85K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | AFRM | HLI |
|---|---|---|
| Sharpe Ratio (1Y) | -0.19 | -0.66 |
| Sortino Ratio (1Y) | -0.28 | -0.91 |
Profitability
ROE (TTM)
Affirm (AFRM) at 44.49% sits in the top ROE quartile, while Houlihan Lokey (HLI) at 17.29% is closer to the peer norm — stronger capital efficiency for AFRM.
AFRM
Financial Services industry group
44.49%
- Max
- 44.78%
- AFRM
- 44.49%
- Q3
- 21.85%
- Median
- 12.91%
- Q1
- 4.48%
- Min
- -18.71%
HLI
Financial Services industry group
17.29%
- Max
- 44.78%
- Q3
- 21.85%
- HLI
- 17.29%
- Median
- 12.91%
- Q1
- 4.48%
- Min
- -18.71%
Net Margin (TTM)
Affirm (AFRM) at 43.86% retains a top-quartile share of revenue as profit, ahead of Houlihan Lokey (HLI) at 15.80%, which keeps about the industry-typical share.
AFRM
Financial Services industry group
43.86%
- Max
- 62.84%
- AFRM
- 43.86%
- Q3
- 28.05%
- Median
- 15.36%
- Q1
- 4.82%
- Min
- -28.52%
HLI
Financial Services industry group
15.80%
- Max
- 62.84%
- Q3
- 28.05%
- HLI
- 15.80%
- Median
- 15.36%
- Q1
- 4.82%
- Min
- -28.52%
Operating Margin (TTM)
Both Affirm (AFRM) at 14.82% and Houlihan Lokey (HLI) at 24.42% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.
AFRM
Financial Services industry group
14.82%
- Max
- 107.33%
- Q3
- 55.90%
- Median
- 30.09%
- AFRM
- 14.82%
- Q1
- 14.60%
- Min
- -44.34%
HLI
Financial Services industry group
24.42%
- Max
- 107.33%
- Q3
- 55.90%
- Median
- 30.09%
- HLI
- 24.42%
- Q1
- 14.60%
- Min
- -44.34%
Profitability Metrics
| Metric | AFRM | HLI |
|---|---|---|
| ROE (TTM) | 44.49% | 17.29% |
| ROA (TTM) | 2.42% | 10.38% |
| Net Margin (TTM) | 43.86% | 15.80% |
| Operating Margin (TTM) | 14.82% | 24.42% |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Affirm (AFRM) at 32.15% sits in the top revenue growth quartile, while Houlihan Lokey (HLI) at 9.55% is closer to the peer norm — faster top-line expansion for AFRM.
EPS Growth
Affirm (AFRM) at 3,586.67% clears its industry range for EPS growth, a much stronger earnings trajectory than Houlihan Lokey (HLI) at 6.87%, which is closer to a typical peer reading.
Growth Metrics
| Metric | AFRM | HLI |
|---|---|---|
| Revenue Growth (YoY) | 32.15% | 9.55% |
| Revenue Growth (3Y CAGR) | 38.96% | 13.10% |
| EPS Growth (YoY) | 3,586.67% | 6.87% |
| EPS Growth (3Y CAGR) | -- | 16.05% |
Financial Strength
Current Ratio (MRQ)
current ratio doesn’t apply on either side: Affirm (AFRM) in Financial Services and Houlihan Lokey (HLI) in Financial Services both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.
Debt / Equity (MRQ)
debt-to-equity ratio is set aside for both: Affirm (AFRM) in Financial Services and Houlihan Lokey (HLI) in Financial Services run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.
Financial Strength Metrics
| Metric | AFRM | HLI |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Affirm (AFRM) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Houlihan Lokey (HLI) reports a yield of 1.77%, ranking against industry peers normally.
AFRM
Financial Services industry group
0.00%
- Max
- 9.77%
- Q3
- 3.92%
- Median
- 1.09%
- AFRM
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
HLI
Financial Services industry group
1.77%
- Max
- 9.77%
- Q3
- 3.92%
- HLI
- 1.77%
- Median
- 1.09%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Affirm (AFRM) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Houlihan Lokey (HLI) reports a payout of 43.62%, ranking against industry peers normally.
AFRM
Financial Services industry group
0.00%
- Max
- 241.07%
- Q3
- 97.36%
- Median
- 25.77%
- AFRM
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
HLI
Financial Services industry group
43.62%
- Max
- 241.07%
- Q3
- 97.36%
- HLI
- 43.62%
- Median
- 25.77%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | AFRM | HLI |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.77% |
| Dividend Payout Ratio (TTM) | 0.00% | 43.62% |
Valuation
P/E Ratio (TTM)
Both Affirm (AFRM) at 11.80 and Houlihan Lokey (HLI) at 24.47 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
AFRM
Financial Services industry group
11.80
- Max
- 45.85
- Q3
- 24.64
- Median
- 15.37
- AFRM
- 11.80
- Q1
- 9.68
- Min
- 0.16
HLI
Financial Services industry group
24.47
- Max
- 45.85
- Q3
- 24.64
- HLI
- 24.47
- Median
- 15.37
- Q1
- 9.68
- Min
- 0.16
P/S Ratio (TTM)
Houlihan Lokey (HLI) at 3.96 is priced about in line with its industry on P/S ratio, while Affirm (AFRM) at 5.03 sits in the pricier quartile — AFRM costs more per dollar of sales.
AFRM
Financial Services industry group
5.03
- Max
- 9.23
- AFRM
- 5.03
- Q3
- 4.57
- Median
- 2.72
- Q1
- 1.28
- Min
- -0.55
HLI
Financial Services industry group
3.96
- Max
- 9.23
- Q3
- 4.57
- HLI
- 3.96
- Median
- 2.72
- Q1
- 1.28
- Min
- -0.55
P/B Ratio (MRQ)
Both Affirm (AFRM) at 4.01 and Houlihan Lokey (HLI) at 4.39 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.
AFRM
Financial Services industry group
4.01
- Max
- 7.79
- AFRM
- 4.01
- Q3
- 3.63
- Median
- 1.57
- Q1
- 0.81
- Min
- -0.39
HLI
Financial Services industry group
4.39
- Max
- 7.79
- HLI
- 4.39
- Q3
- 3.63
- Median
- 1.57
- Q1
- 0.81
- Min
- -0.39
Valuation Metrics
| Metric | AFRM | HLI |
|---|---|---|
| P/E Ratio (TTM) | 11.80 | 24.47 |
| P/S Ratio (TTM) | 5.03 | 3.96 |
| P/B Ratio (MRQ) | 4.01 | 4.39 |
| Free Cash Flow Yield (TTM) | -- | -- |