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

Updated

Here’s a clear look at AFRM and PANW, 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

PANW stands out with 120.01 billion USD in market value—about 7.88× AFRM’s market cap of 15.24 billion USD.

AFRM’s beta of 3.66 points to much larger expected swings compared to PANW’s calmer 1.02, suggesting both higher upside and downside potential.

SymbolAFRMPANW
Company NameAffirm Holdings, Inc.Palo Alto Networks, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - InfrastructureSoftware - Infrastructure
CEOMr. Max Roth LevchinMr. Nikesh Arora C.F.A.
Price47.24 USD181.26 USD
Market Cap15.24 billion USD120.01 billion USD
Beta3.661.02
ExchangeNASDAQNASDAQ
IPO DateJanuary 13, 2021July 20, 2012
ADRNoNo

Performance Comparison

This chart compares the performance of AFRM and PANW 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 PANW 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 PANW at 95.26 signals healthy earnings.
  • Analysts assign negative forward PEG ratios to both AFRM (-1.38) and PANW (-0.95), suggesting expectation of shrinking or negative earnings in the upcoming period—a worrying sign for their profit outlook.
SymbolAFRMPANW
Price-to-Earnings Ratio (P/E, TTM)-246.1495.26
Forward PEG Ratio (TTM)-1.38-0.95
Price-to-Sales Ratio (P/S, TTM)5.0714.00
Price-to-Book Ratio (P/B, TTM)5.3218.74
Price-to-Free Cash Flow Ratio (P/FCF, TTM)25.0440.33
EV-to-EBITDA (TTM)69.8578.26
EV-to-Sales (TTM)7.0713.85
EV-to-Free Cash Flow (TTM)34.9039.88

Dividend Comparison

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

SymbolAFRMPANW
Dividend Yield (TTM)0.00%0.00%

Financial Strength Metrics Comparison

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

  • PANW’s current ratio of 0.84 indicates its assets may not cover near-term debts, whereas AFRM at 63.09 maintains healthy liquidity.
  • With negative EBIT (-0.24), AFRM cannot cover its interest payments. PANW, with an interest coverage of 591.06, meets its interest obligations.
SymbolAFRMPANW
Current Ratio (TTM)63.090.84
Quick Ratio (TTM)63.090.84
Debt-to-Equity Ratio (TTM)2.560.14
Debt-to-Assets Ratio (TTM)0.710.04
Interest Coverage Ratio (TTM)-0.24591.06