Seek Returns logo

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

Updated

Here’s a clear look at AFRM and MSI, 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

MSI stands out with 71.18 billion USD in market value—about 4.67× AFRM’s market cap of 15.24 billion USD.

AFRM’s beta of 3.66 points to much larger expected swings compared to MSI’s calmer 0.99, suggesting both higher upside and downside potential.

SymbolAFRMMSI
Company NameAffirm Holdings, Inc.Motorola Solutions, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - InfrastructureCommunication Equipment
CEOMr. Max Roth LevchinMr. Gregory Q. Brown
Price47.24 USD426.44 USD
Market Cap15.24 billion USD71.18 billion USD
Beta3.660.99
ExchangeNASDAQNYSE
IPO DateJanuary 13, 2021March 17, 1980
ADRNoNo

Performance Comparison

This chart compares the performance of AFRM and MSI 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 MSI 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 MSI at 34.79 signals healthy earnings.
  • AFRM posts a negative forward PEG of -1.38, hinting at anticipated earnings decline, whereas MSI at 4.13 has projections for stable or growing earnings.
SymbolAFRMMSI
Price-to-Earnings Ratio (P/E, TTM)-246.1434.79
Forward PEG Ratio (TTM)-1.384.13
Price-to-Sales Ratio (P/S, TTM)5.076.50
Price-to-Book Ratio (P/B, TTM)5.3243.37
Price-to-Free Cash Flow Ratio (P/FCF, TTM)25.0431.34
EV-to-EBITDA (TTM)69.8524.12
EV-to-Sales (TTM)7.076.95
EV-to-Free Cash Flow (TTM)34.9033.53

Dividend Comparison

AFRM offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while MSI provides a 0.97% dividend yield, giving investors a steady income stream.

SymbolAFRMMSI
Dividend Yield (TTM)0.00%0.97%

Financial Strength Metrics Comparison

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

  • MSI is highly leveraged (debt-to-equity ratio 3.98), elevating both potential gains and risks, compared to AFRM at 2.56, which maintains a steadier capital structure.
  • With negative EBIT (-0.24), AFRM cannot cover its interest payments. MSI, with an interest coverage of 11.80, meets its interest obligations.
SymbolAFRMMSI
Current Ratio (TTM)63.091.20
Quick Ratio (TTM)63.091.03
Debt-to-Equity Ratio (TTM)2.563.98
Debt-to-Assets Ratio (TTM)0.710.45
Interest Coverage Ratio (TTM)-0.2411.80