AFRM vs. LRCX: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFRM and LRCX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AFRM | LRCX |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | Lam Research Corporation |
| Country | United States | United States |
| GICS Sector | Financials | Information Technology |
| GICS Industry | Financial Services | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 22.71 billion USD | 189.05 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | January 13, 2021 | May 4, 1984 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of AFRM and LRCX 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.
Historical Performance at a Glance
| Symbol | AFRM | LRCX |
|---|---|---|
| 5-Day Price Return | -7.33% | -10.89% |
| 13-Week Price Return | -10.43% | 48.99% |
| 26-Week Price Return | 30.72% | 73.91% |
| 52-Week Price Return | 28.62% | 100.76% |
| Month-to-Date Return | -1.91% | -5.84% |
| Year-to-Date Return | 15.78% | 105.26% |
| 10-Day Avg. Volume | 7.31M | 10.78M |
| 3-Month Avg. Volume | 6.96M | 11.52M |
| 3-Month Volatility | 67.46% | 48.70% |
| Beta | 3.62 | 1.81 |
Profitability
Return on Equity (TTM)
AFRM
7.75%
Financial Services Industry
- Max
- 34.42%
- Q3
- 16.76%
- Median
- 9.18%
- Q1
- 3.90%
- Min
- -10.16%
AFRM’s Return on Equity of 7.75% is on par with the norm for the Financial Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
LRCX
60.57%
Semiconductors & Semiconductor Equipment Industry
- Max
- 49.05%
- Q3
- 22.19%
- Median
- 7.96%
- Q1
- 0.99%
- Min
- -15.65%
LRCX’s Return on Equity of 60.57% is exceptionally high, placing it well beyond the typical range for the Semiconductors & Semiconductor Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
AFRM
6.74%
Financial Services Industry
- Max
- 52.16%
- Q3
- 25.33%
- Median
- 13.11%
- Q1
- 7.04%
- Min
- -8.99%
Falling into the lower quartile for the Financial Services industry, AFRM’s Net Profit Margin of 6.74% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
LRCX
29.66%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 24.47%
- Median
- 11.88%
- Q1
- 0.60%
- Min
- -25.46%
A Net Profit Margin of 29.66% places LRCX in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
AFRM
4.96%
Financial Services Industry
- Max
- 81.07%
- Q3
- 40.32%
- Median
- 19.93%
- Q1
- 10.20%
- Min
- -34.40%
AFRM’s Operating Profit Margin of 4.96% is in the lower quartile for the Financial Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
LRCX
33.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.76%
- Median
- 12.14%
- Q1
- 3.29%
- Min
- -32.60%
An Operating Profit Margin of 33.00% places LRCX in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AFRM | LRCX |
|---|---|---|
| Return on Equity (TTM) | 7.75% | 60.57% |
| Return on Assets (TTM) | 2.14% | 27.98% |
| Net Profit Margin (TTM) | 6.74% | 29.66% |
| Operating Profit Margin (TTM) | 4.96% | 33.00% |
| Gross Profit Margin (TTM) | 92.50% | 49.31% |
Financial Strength
Current Ratio (MRQ)
AFRM
4.58
Financial Services Industry
- Max
- 4.36
- Q3
- 2.26
- Median
- 1.33
- Q1
- 0.86
- Min
- 0.01
For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
LRCX
2.21
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.57
- Q3
- 4.28
- Median
- 2.86
- Q1
- 2.22
- Min
- 1.02
LRCX’s Current Ratio of 2.21 falls into the lower quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
AFRM
2.35
Financial Services Industry
- Max
- 5.07
- Q3
- 2.14
- Median
- 0.55
- Q1
- 0.11
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.
LRCX
0.44
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.18
- Q3
- 0.48
- Median
- 0.24
- Q1
- 0.01
- Min
- 0.00
LRCX’s Debt-to-Equity Ratio of 0.44 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
AFRM
-3.76
Financial Services Industry
- Max
- 140.54
- Q3
- 57.67
- Median
- 6.72
- Q1
- 1.93
- Min
- -33.27
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.
LRCX
94.65
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.21
- Median
- 22.37
- Q1
- 6.43
- Min
- -7.80
LRCX’s Interest Coverage Ratio of 94.65 is in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AFRM | LRCX |
|---|---|---|
| Current Ratio (MRQ) | 4.58 | 2.21 |
| Quick Ratio (MRQ) | 4.49 | 1.54 |
| Debt-to-Equity Ratio (MRQ) | 2.35 | 0.44 |
| Interest Coverage Ratio (TTM) | -3.76 | 94.65 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
AFRM
0.00%
Financial Services Industry
- Max
- 7.52%
- Q3
- 3.60%
- Median
- 1.75%
- 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.
LRCX
0.63%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.58%
- Q3
- 1.59%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
LRCX’s Dividend Yield of 0.63% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
AFRM
0.00%
Financial Services Industry
- Max
- 132.10%
- Q3
- 64.32%
- Median
- 17.51%
- 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.
LRCX
20.32%
Semiconductors & Semiconductor Equipment Industry
- Max
- 211.90%
- Q3
- 88.01%
- Median
- 25.84%
- Q1
- 0.00%
- Min
- 0.00%
LRCX’s Dividend Payout Ratio of 20.32% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AFRM | LRCX |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.63% |
| Dividend Payout Ratio (TTM) | 0.00% | 20.32% |
Valuation
Price-to-Earnings Ratio (TTM)
AFRM
96.53
Financial Services Industry
- Max
- 46.13
- Q3
- 28.79
- Median
- 13.18
- Q1
- 9.14
- Min
- 0.47
At 96.53, AFRM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
LRCX
32.05
Semiconductors & Semiconductor Equipment Industry
- Max
- 95.58
- Q3
- 58.67
- Median
- 34.77
- Q1
- 25.45
- Min
- 12.63
LRCX’s P/E Ratio of 32.05 is within the middle range for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
AFRM
6.50
Financial Services Industry
- Max
- 9.71
- Q3
- 4.81
- Median
- 2.49
- Q1
- 1.25
- Min
- 0.04
The P/S Ratio is often not a primary valuation tool in the Financial Services industry.
LRCX
9.51
Semiconductors & Semiconductor Equipment Industry
- Max
- 18.34
- Q3
- 10.38
- Median
- 5.38
- Q1
- 2.49
- Min
- 0.32
LRCX’s P/S Ratio of 9.51 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
AFRM
7.21
Financial Services Industry
- Max
- 7.21
- Q3
- 3.51
- Median
- 1.52
- Q1
- 0.88
- Min
- 0.08
AFRM’s P/B Ratio of 7.21 is in the upper tier for the Financial Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
LRCX
16.22
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.22
- Q3
- 8.33
- Median
- 4.39
- Q1
- 1.79
- Min
- 0.30
LRCX’s P/B Ratio of 16.22 is in the upper tier for the Semiconductors & Semiconductor Equipment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | AFRM | LRCX |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 96.53 | 32.05 |
| Price-to-Sales Ratio (TTM) | 6.50 | 9.51 |
| Price-to-Book Ratio (MRQ) | 7.21 | 16.22 |
| Price-to-Free Cash Flow Ratio (TTM) | 29.25 | 33.55 |