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

Updated

Here’s a clear look at AFRM and MPWR, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

MPWR stands out with 32.49 billion USD in market value—about 2.13× AFRM’s market cap of 15.24 billion USD.

AFRM’s beta of 3.66 points to much larger expected swings compared to MPWR’s calmer 1.18, suggesting both higher upside and downside potential.

SymbolAFRMMPWR
Company NameAffirm Holdings, Inc.Monolithic Power Systems, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - InfrastructureSemiconductors
CEOMr. Max Roth LevchinMr. Michael R. Hsing
Price47.24 USD678.62 USD
Market Cap15.24 billion USD32.49 billion USD
Beta3.661.18
ExchangeNASDAQNASDAQ
IPO DateJanuary 13, 2021November 19, 2004
ADRNoNo

Performance Comparison

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

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of AFRM and MPWR based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • AFRM posts a negative P/E of -246.14, reflecting last year’s net loss, while MPWR at 17.76 signals healthy earnings.
  • AFRM posts a negative forward PEG of -1.38, hinting at anticipated earnings decline, whereas MPWR at 0.83 has projections for stable or growing earnings.
SymbolAFRMMPWR
Price-to-Earnings Ratio (P/E, TTM)-246.1417.76
Forward PEG Ratio (TTM)-1.380.83
Price-to-Sales Ratio (P/S, TTM)5.0713.61
Price-to-Book Ratio (P/B, TTM)5.329.94
Price-to-Free Cash Flow Ratio (P/FCF, TTM)25.0451.88
EV-to-EBITDA (TTM)69.8549.74
EV-to-Sales (TTM)7.0713.35
EV-to-Free Cash Flow (TTM)34.9050.86

Dividend Comparison

AFRM offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while MPWR provides a 0.78% dividend yield, giving investors a steady income stream.

SymbolAFRMMPWR
Dividend Yield (TTM)0.00%0.78%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AFRM and MPWR, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • AFRM has negative EBIT (interest coverage -0.24), unable to cover interest, while MPWR shows “--” (negligible interest expense).
SymbolAFRMMPWR
Current Ratio (TTM)63.094.92
Quick Ratio (TTM)63.093.67
Debt-to-Equity Ratio (TTM)2.560.00
Debt-to-Assets Ratio (TTM)0.710.00
Interest Coverage Ratio (TTM)-0.24--