AFRM vs. LPLA: Affirm vs. LPL Financial Stock Comparison
How do Affirm (AFRM) and LPL Financial (LPLA) 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 LPL Financial (LPLA) both fall under the Financial Services industry group, but AFRM is classified in Financial Services while LPLA is classified in Capital Markets.
| Profile Item | AFRM | LPLA |
|---|---|---|
| Name | Affirm Holdings, Inc. | LPL Financial Holdings 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 | 23.01 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | January 13, 2021 | November 18, 2010 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | AFRM | LPLA |
|---|---|---|
| Total Return (1Y) | -6.89% | -17.27% |
| Total Return (3Y, Annualized) | 40.23% | 11.10% |
| Total Return (5Y, Annualized) | -15.36% | 13.92% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
Affirm (AFRM) has a highly aggressive beta of 3.70, indicating much higher sensitivity to broad-market moves, while LPL Financial (LPLA) is defensive at 0.52 and tends to be less market-sensitive — a wide gap in beta profiles.
| Metric | AFRM | LPLA |
|---|---|---|
| Volatility (1Y, Annualized) | 58.20% | 39.22% |
| Beta (5Y) | 3.70 | 0.52 |
| Max Drawdown (5Y) | -94.35% | -33.18% |
| Avg. Volume (3M) | 4.46M | 855.76K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | AFRM | LPLA |
|---|---|---|
| Sharpe Ratio (1Y) | -0.19 | -0.55 |
| Sortino Ratio (1Y) | -0.28 | -0.70 |
Profitability
ROE (TTM)
Both Affirm (AFRM) at 44.49% and LPL Financial (LPLA) at 25.66% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.
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%
LPLA
Financial Services industry group
25.66%
- Max
- 44.78%
- LPLA
- 25.66%
- Q3
- 21.85%
- 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 LPL Financial (LPLA) at 6.97%, 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%
LPLA
Financial Services industry group
6.97%
- Max
- 62.84%
- Q3
- 28.05%
- Median
- 15.36%
- LPLA
- 6.97%
- Q1
- 4.82%
- Min
- -28.52%
Operating Margin (TTM)
Affirm (AFRM) at 14.82% runs core operations around its industry’s norm, while LPL Financial (LPLA) at 10.85% operates in the bottom quartile.
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%
LPLA
Financial Services industry group
10.85%
- Max
- 107.33%
- Q3
- 55.90%
- Median
- 30.09%
- Q1
- 14.60%
- LPLA
- 10.85%
- Min
- -44.34%
Profitability Metrics
| Metric | AFRM | LPLA |
|---|---|---|
| ROE (TTM) | 44.49% | 25.66% |
| ROA (TTM) | 2.42% | 7.35% |
| Net Margin (TTM) | 43.86% | 6.97% |
| Operating Margin (TTM) | 14.82% | 10.85% |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Both Affirm (AFRM) at 32.15% and LPL Financial (LPLA) at 37.18% sit in the top peer quartile for revenue growth, so each is growing its top line faster than typical industry peers.
EPS Growth
Affirm (AFRM) at 3,586.67% clears its industry range for EPS growth, a much stronger earnings trajectory than LPL Financial (LPLA) at -22.17%, which is closer to a typical peer reading.
Growth Metrics
| Metric | AFRM | LPLA |
|---|---|---|
| Revenue Growth (YoY) | 32.15% | 37.18% |
| Revenue Growth (3Y CAGR) | 38.96% | 25.47% |
| EPS Growth (YoY) | 3,586.67% | -22.17% |
| EPS Growth (3Y CAGR) | -- | 1.64% |
Financial Strength
Current Ratio (MRQ)
current ratio doesn’t apply on either side: Affirm (AFRM) in Financial Services and LPL Financial (LPLA) 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 LPL Financial (LPLA) 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 | LPLA |
|---|---|---|
| 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 LPL Financial (LPLA) reports a yield of 0.40%, 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%
LPLA
Financial Services industry group
0.40%
- Max
- 9.77%
- Q3
- 3.92%
- Median
- 1.09%
- LPLA
- 0.40%
- 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 LPL Financial (LPLA) reports a payout of 6.88%, 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%
LPLA
Financial Services industry group
6.88%
- Max
- 241.07%
- Q3
- 97.36%
- Median
- 25.77%
- LPLA
- 6.88%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | AFRM | LPLA |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.40% |
| Dividend Payout Ratio (TTM) | 0.00% | 6.88% |
Valuation
P/E Ratio (TTM)
Both Affirm (AFRM) at 11.80 and LPL Financial (LPLA) at 16.93 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
LPLA
Financial Services industry group
16.93
- Max
- 45.85
- Q3
- 24.64
- LPLA
- 16.93
- Median
- 15.37
- Q1
- 9.68
- Min
- 0.16
P/S Ratio (TTM)
LPL Financial (LPLA) at 1.15 looks cheap on sales in the lower P/S ratio quartile, while Affirm (AFRM) at 5.03 looks rich in the upper quartile — a clear gap in price per dollar of revenue.
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
LPLA
Financial Services industry group
1.15
- Max
- 9.23
- Q3
- 4.57
- Median
- 2.72
- Q1
- 1.28
- LPLA
- 1.15
- Min
- -0.55
P/B Ratio (MRQ)
Both Affirm (AFRM) at 4.01 and LPL Financial (LPLA) at 3.98 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
LPLA
Financial Services industry group
3.98
- Max
- 7.79
- LPLA
- 3.98
- Q3
- 3.63
- Median
- 1.57
- Q1
- 0.81
- Min
- -0.39
Valuation Metrics
| Metric | AFRM | LPLA |
|---|---|---|
| P/E Ratio (TTM) | 11.80 | 16.93 |
| P/S Ratio (TTM) | 5.03 | 1.15 |
| P/B Ratio (MRQ) | 4.01 | 3.98 |
| Free Cash Flow Yield (TTM) | -- | -- |