AFRM vs. PLTR: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AFRM and PLTR, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
PLTR’s market capitalization of 320.00 billion USD is significantly greater than AFRM’s 19.07 billion USD, highlighting its more substantial market valuation.
With betas of 3.58 for AFRM and 2.64 for PLTR, both stocks show similar sensitivity to overall market movements.
| Symbol | AFRM | PLTR |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | Palantir Technologies Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Software - Infrastructure |
| CEO | Mr. Max Roth Levchin | Dr. Alexander C. Karp J.D. |
| Price | 59.11 USD | 141.41 USD |
| Market Cap | 19.07 billion USD | 320.00 billion USD |
| Beta | 3.58 | 2.64 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | January 13, 2021 | September 30, 2020 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AFRM and PLTR over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
- AFRM: $19361.28 (93.61%)
- PLTR: $54767.62 (447.68%)
Valuation Metrics Comparison
This section compares the market valuation of AFRM and PLTR. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- AFRM’s Price-to-Earnings (P/E) ratio of -307.99 indicates negative earnings, signaling current unprofitability. PLTR, with a very high P/E ratio of 581.97, appears to have a valuation that either is significantly stretched or reflects high expectations for substantial future growth.
- AFRM’s Forward PEG ratio of -1.61 is negative. This typically points to concerns such as negative earnings or projections of contracting growth, complicating valuation. PLTR’s Forward PEG ratio of 20.24 is very high, indicating its stock price may be significantly outpacing its expected earnings growth and potentially signaling an overstretched valuation.
| Symbol | AFRM | PLTR |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -307.99 | 581.97 |
| Forward PEG Ratio (TTM) | -1.61 | 20.24 |
| Price-to-Sales Ratio (P/S, TTM) | 6.34 | 102.73 |
| Price-to-Book Ratio (P/B, TTM) | 6.66 | 61.23 |
| EV-to-EBITDA (TTM) | 82.44 | 744.66 |
| EV-to-Sales (TTM) | 8.34 | 102.49 |
Dividend Comparison
Neither AFRM nor PLTR currently pays a dividend; this often suggests they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.
| Symbol | AFRM | PLTR |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
Financial Strength Metrics Comparison
This section evaluates the financial strength of AFRM and PLTR. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.
- AFRM’s Debt-to-Equity (D/E) ratio of 2.56 is very high. This indicates that the company is significantly financed by debt, which can amplify returns but also substantially increases its financial risk profile and vulnerability to earnings fluctuations.
| Symbol | AFRM | PLTR |
|---|---|---|
| Current Ratio (TTM) | 63.09 | 6.49 |
| Quick Ratio (TTM) | 63.09 | 6.49 |
| Debt-to-Equity Ratio (TTM) | 2.56 | 0.05 |
| Debt-to-Asset Ratio (TTM) | 0.71 | 0.04 |
| Net Debt-to-EBITDA Ratio (TTM) | 19.75 | -1.75 |
| Interest Coverage Ratio (TTM) | -0.24 | -- |