AFRM vs. NTES: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFRM and NTES, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
NTES’s market capitalization of 84.47 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 NTES (beta: 0.85), suggesting AFRM has greater potential for both gains and losses relative to market movements.
NTES is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AFRM, on the other hand, is a domestic entity.
| Symbol | AFRM | NTES |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | NetEase, Inc. |
| Country | US | CN |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Electronic Gaming & Multimedia |
| CEO | Max Roth Levchin | Lei Ding |
| Price | 69.19 USD | 132.85 USD |
| Market Cap | 22.30 billion USD | 84.47 billion USD |
| Beta | 3.58 | 0.85 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | January 13, 2021 | June 30, 2000 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of AFRM and NTES 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.
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.
NTES
23.73%
Electronic Gaming & Multimedia Industry
- Max
- 22.45%
- Q3
- 13.61%
- Median
- -5.53%
- Q1
- -70.13%
- Min
- -121.78%
NTES’s Return on Equity of 23.73% is exceptionally high, placing it well beyond the typical range for the Electronic Gaming & Multimedia industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
NTES
17.02%
Electronic Gaming & Multimedia Industry
- Max
- 17.62%
- Q3
- 11.24%
- Median
- 1.98%
- Q1
- -22.67%
- Min
- -64.64%
In the upper quartile for the Electronic Gaming & Multimedia industry, NTES’s Return on Invested Capital of 17.02% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
NTES
30.17%
Electronic Gaming & Multimedia Industry
- Max
- 28.20%
- Q3
- 16.08%
- Median
- 10.20%
- Q1
- -7.35%
- Min
- -22.94%
NTES’s Net Profit Margin of 30.17% is exceptionally high, placing it well beyond the typical range for the Electronic Gaming & Multimedia industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
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.
NTES
30.21%
Electronic Gaming & Multimedia Industry
- Max
- 28.10%
- Q3
- 17.15%
- Median
- 5.89%
- Q1
- -19.43%
- Min
- -26.48%
NTES’s Operating Profit Margin of 30.21% is exceptionally high, placing it well above the typical range for the Electronic Gaming & Multimedia industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | AFRM | NTES |
|---|---|---|
| Return on Equity (TTM) | -2.22% | 23.73% |
| Return on Assets (TTM) | -0.60% | 16.11% |
| Return on Invested Capital (TTM) | -0.85% | 17.02% |
| Net Profit Margin (TTM) | -2.07% | 30.17% |
| Operating Profit Margin (TTM) | -2.53% | 30.21% |
| Gross Profit Margin (TTM) | 71.61% | 62.71% |
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.
NTES
3.21
Electronic Gaming & Multimedia Industry
- Max
- 3.22
- Q3
- 2.77
- Median
- 1.19
- Q1
- 0.82
- Min
- 0.01
NTES’s Current Ratio of 3.21 is in the upper quartile for the Electronic Gaming & Multimedia industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
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.
NTES
0.07
Electronic Gaming & Multimedia Industry
- Max
- 1.92
- Q3
- 1.14
- Median
- 0.31
- Q1
- 0.17
- Min
- 0.09
At 0.07, NTES’s Debt-to-Equity Ratio is unusually low for the Electronic Gaming & Multimedia industry. This highlights a conservative capital structure, suggesting the company prioritizes financial stability over aggressive growth funded by debt.
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.
NTES
--
Electronic Gaming & Multimedia Industry
- Max
- 20.61
- Q3
- 4.69
- Median
- -1.31
- Q1
- -20.23
- Min
- -25.09
Interest Coverage Ratio data for NTES is currently unavailable.
Financial Strength at a Glance
| Symbol | AFRM | NTES |
|---|---|---|
| Current Ratio (TTM) | 63.09 | 3.21 |
| Quick Ratio (TTM) | 63.09 | 3.20 |
| Debt-to-Equity Ratio (TTM) | 2.56 | 0.07 |
| Debt-to-Asset Ratio (TTM) | 0.71 | 0.05 |
| Net Debt-to-EBITDA Ratio (TTM) | 19.75 | -0.92 |
| Interest Coverage Ratio (TTM) | -0.24 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AFRM and NTES. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
NTES
1.49%
Electronic Gaming & Multimedia Industry
- Max
- 8.44%
- Q3
- 0.36%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.49%, NTES offers a more attractive income stream than most of its peers in the Electronic Gaming & Multimedia industry, signaling a strong commitment to shareholder returns.
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.
NTES
36.47%
Electronic Gaming & Multimedia Industry
- Max
- 106.44%
- Q3
- 13.31%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NTES’s Dividend Payout Ratio of 36.47% is in the upper quartile for the Electronic Gaming & Multimedia 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.
Dividend at a Glance
| Symbol | AFRM | NTES |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.49% |
| Dividend Payout Ratio (TTM) | 0.00% | 36.47% |
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.
NTES
18.79
Electronic Gaming & Multimedia Industry
- Max
- 36.87
- Q3
- 20.95
- Median
- 12.73
- Q1
- 7.31
- Min
- 3.67
NTES’s P/E Ratio of 18.79 is within the middle range for the Electronic Gaming & Multimedia industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
NTES
2.72
Electronic Gaming & Multimedia Industry
- Max
- 2.97
- Q3
- 2.24
- Median
- 1.87
- Q1
- 1.76
- Min
- 1.76
A Forward PEG Ratio of 2.72 places NTES in the upper quartile for the Electronic Gaming & Multimedia industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
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.
NTES
5.68
Electronic Gaming & Multimedia Industry
- Max
- 7.60
- Q3
- 6.29
- Median
- 3.76
- Q1
- 1.02
- Min
- 0.66
NTES’s P/S Ratio of 5.68 aligns with the market consensus for the Electronic Gaming & Multimedia industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
NTES
4.23
Electronic Gaming & Multimedia Industry
- Max
- 6.47
- Q3
- 6.47
- Median
- 4.48
- Q1
- 1.29
- Min
- 0.36
The P/B Ratio is often not a primary valuation metric for the Electronic Gaming & Multimedia industry.
Valuation at a Glance
| Symbol | AFRM | NTES |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -360.51 | 18.79 |
| Forward PEG Ratio (TTM) | -6.16 | 2.72 |
| Price-to-Sales Ratio (P/S, TTM) | 7.42 | 5.68 |
| Price-to-Book Ratio (P/B, TTM) | 7.80 | 4.23 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 36.63 | 15.23 |
| EV-to-EBITDA (TTM) | 93.06 | 16.61 |
| EV-to-Sales (TTM) | 9.41 | 5.38 |