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

Updated on July 7, 2025

Here’s a clear look at AFRM and MSI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

MSI’s market capitalization of 70.91 billion USD is significantly greater than AFRM’s 22.30 billion USD, highlighting its more substantial market valuation.

AFRM’s beta of 3.58 points to significantly higher volatility compared to MSI (beta: 0.97), suggesting AFRM has greater potential for both gains and losses relative to market movements.

Symbol	AFRM	MSI
Company Name	Affirm Holdings, Inc.	Motorola Solutions, Inc.
Country	US	US
Sector	Technology	Technology
Industry	Software - Infrastructure	Communication Equipment
CEO	Max Roth Levchin	Gregory Q. Brown
Price	69.19 USD	424.84 USD
Market Cap	22.30 billion USD	70.91 billion USD
Beta	3.58	0.97
Exchange	NASDAQ	NYSE
IPO Date	January 13, 2021	March 17, 1980
ADR	No	No

Historical Performance

This chart compares the performance of AFRM and MSI 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.

AFRM vs. MSI: Growth of a $10,000 investment over the past one year.

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.

MSI

149.56%

Communication Equipment Industry

Max: 30.07%
Q3: 8.07%
Median: 1.84%
Q1: -11.93%
Min: -31.65%

MSI’s Return on Equity of 149.56% is exceptionally high, placing it well beyond the typical range for the Communication Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

AFRM vs. MSI: A comparison of their ROE against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

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.

MSI

22.82%

Communication Equipment Industry

Max: 11.59%
Q3: 6.61%
Median: 2.97%
Q1: -2.58%
Min: -13.18%

MSI’s Return on Invested Capital of 22.82% is exceptionally high, placing it well beyond the typical range for the Communication Equipment industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

AFRM vs. MSI: A comparison of their ROIC against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

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.

MSI

18.67%

Communication Equipment Industry

Max: 23.65%
Q3: 9.21%
Median: 2.46%
Q1: -8.56%
Min: -29.87%

A Net Profit Margin of 18.67% places MSI in the upper quartile for the Communication Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

AFRM vs. MSI: A comparison of their Net Profit Margin against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

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.

MSI

25.20%

Communication Equipment Industry

Max: 30.72%
Q3: 11.64%
Median: 5.79%
Q1: -2.28%
Min: -18.20%

An Operating Profit Margin of 25.20% places MSI in the upper quartile for the Communication Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AFRM vs. MSI: A comparison of their Operating Margin against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

Profitability at a Glance

Symbol	AFRM	MSI
Return on Equity (TTM)	-2.22%	149.56%
Return on Assets (TTM)	-0.60%	14.18%
Return on Invested Capital (TTM)	-0.85%	22.82%
Net Profit Margin (TTM)	-2.07%	18.67%
Operating Profit Margin (TTM)	-2.53%	25.20%
Gross Profit Margin (TTM)	71.61%	50.97%

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.

MSI

1.20

Communication Equipment Industry

Max: 3.40
Q3: 2.59
Median: 1.62
Q1: 1.32
Min: 0.86

MSI’s Current Ratio of 1.20 falls into the lower quartile for the Communication Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AFRM vs. MSI: A comparison of their Current Ratio against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

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.

MSI

3.98

Communication Equipment Industry

Max: 1.82
Q3: 1.00
Median: 0.53
Q1: 0.20
Min: 0.02

With a Debt-to-Equity Ratio of 3.98, MSI operates with exceptionally high leverage compared to the Communication Equipment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

AFRM vs. MSI: A comparison of their D/E Ratio against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

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.

MSI

11.80

Communication Equipment Industry

Max: 16.12
Q3: 9.22
Median: 2.52
Q1: -0.75
Min: -12.07

MSI’s Interest Coverage Ratio of 11.80 is in the upper quartile for the Communication Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AFRM vs. MSI: A comparison of their Interest Coverage against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

Financial Strength at a Glance

Symbol	AFRM	MSI
Current Ratio (TTM)	63.09	1.20
Quick Ratio (TTM)	63.09	1.03
Debt-to-Equity Ratio (TTM)	2.56	3.98
Debt-to-Asset Ratio (TTM)	0.71	0.45
Net Debt-to-EBITDA Ratio (TTM)	19.75	1.57
Interest Coverage Ratio (TTM)	-0.24	11.80

Growth

The following charts compare key year-over-year (YoY) growth metrics for AFRM and MSI. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AFRM vs. MSI: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AFRM vs. MSI: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AFRM vs. MSI: A comparison of their annual year-over-year 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.

MSI

1.00%

Communication Equipment Industry

Max: 4.72%
Q3: 0.38%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 1.00%, MSI offers a more attractive income stream than most of its peers in the Communication Equipment industry, signaling a strong commitment to shareholder returns.

AFRM vs. MSI: A comparison of their Dividend Yield against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

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.

MSI

32.89%

Communication Equipment Industry

Max: 91.96%
Q3: 26.44%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSI’s Dividend Payout Ratio of 32.89% is in the upper quartile for the Communication Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

AFRM vs. MSI: A comparison of their Payout Ratio against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

Dividend at a Glance

Symbol	AFRM	MSI
Dividend Yield (TTM)	0.00%	1.00%
Dividend Payout Ratio (TTM)	0.00%	32.89%

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.

MSI

34.66

Communication Equipment Industry

Max: 44.37
Q3: 41.98
Median: 30.61
Q1: 23.44
Min: 2.14

MSI’s P/E Ratio of 34.66 is within the middle range for the Communication 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.

AFRM vs. MSI: A comparison of their P/E Ratio against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

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.

MSI

4.11

Communication Equipment Industry

Max: 15.97
Q3: 6.99
Median: 2.78
Q1: 0.66
Min: 0.05

The Forward PEG Ratio is often not a primary valuation metric in the Communication Equipment industry.

AFRM vs. MSI: A comparison of their Forward PEG Ratio against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

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.

MSI

6.47

Communication Equipment Industry

Max: 6.38
Q3: 3.88
Median: 2.17
Q1: 1.15
Min: 0.37

With a P/S Ratio of 6.47, MSI trades at a valuation that eclipses even the highest in the Communication Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AFRM vs. MSI: A comparison of their P/S Ratio against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

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.

MSI

43.21

Communication Equipment Industry

Max: 14.42
Q3: 7.01
Median: 3.09
Q1: 1.38
Min: 0.41

At 43.21, MSI’s P/B Ratio is at an extreme premium to the Communication Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

AFRM vs. MSI: A comparison of their P/B Ratio against their respective Software - Infrastructure and Communication Equipment industry benchmarks.

Valuation at a Glance

Symbol	AFRM	MSI
Price-to-Earnings Ratio (P/E, TTM)	-360.51	34.66
Forward PEG Ratio (TTM)	-6.16	4.11
Price-to-Sales Ratio (P/S, TTM)	7.42	6.47
Price-to-Book Ratio (P/B, TTM)	7.80	43.21
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	36.63	31.23
EV-to-EBITDA (TTM)	93.06	24.03
EV-to-Sales (TTM)	9.41	6.92