Seek Returns logo

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

Updated

Here’s a clear look at AFRM and ON, 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

With AFRM at 15.24 billion USD and ON at 18.24 billion USD, their market capitalizations sit in the same ballpark.

AFRM’s beta of 3.66 points to much larger expected swings compared to ON’s calmer 1.39, suggesting both higher upside and downside potential.

SymbolAFRMON
Company NameAffirm Holdings, Inc.ON Semiconductor Corporation
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - InfrastructureSemiconductors
CEOMr. Max Roth LevchinMr. Hassane S. El-Khoury
Price47.24 USD43.66 USD
Market Cap15.24 billion USD18.24 billion USD
Beta3.661.39
ExchangeNASDAQNASDAQ
IPO DateJanuary 13, 2021May 2, 2000
ADRNoNo

Performance Comparison

This chart compares the performance of AFRM and ON 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 ON 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 ON at 29.03 signals healthy earnings.
  • AFRM posts a negative forward PEG of -1.38, hinting at anticipated earnings decline, whereas ON at 0.84 has projections for stable or growing earnings.
SymbolAFRMON
Price-to-Earnings Ratio (P/E, TTM)-246.1429.03
Forward PEG Ratio (TTM)-1.380.84
Price-to-Sales Ratio (P/S, TTM)5.072.74
Price-to-Book Ratio (P/B, TTM)5.322.29
Price-to-Free Cash Flow Ratio (P/FCF, TTM)25.0411.77
EV-to-EBITDA (TTM)69.8514.46
EV-to-Sales (TTM)7.072.83
EV-to-Free Cash Flow (TTM)34.9012.16

Dividend Comparison

Neither AFRM nor ON currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

SymbolAFRMON
Dividend Yield (TTM)0.00%0.00%

Financial Strength Metrics Comparison

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

  • With negative EBIT (-0.24), AFRM cannot cover its interest payments. ON, with an interest coverage of 25.86, meets its interest obligations.
SymbolAFRMON
Current Ratio (TTM)63.094.95
Quick Ratio (TTM)63.093.32
Debt-to-Equity Ratio (TTM)2.560.42
Debt-to-Assets Ratio (TTM)0.710.25
Interest Coverage Ratio (TTM)-0.2425.86