AFRM vs. PYPL: Affirm vs. PayPal Stock Comparison
How do Affirm (AFRM) and PayPal (PYPL) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Affirm (AFRM) and PayPal (PYPL) are both classified in the Transaction & Payment Processing Services sub-industry within the broader Financial Services industry, placing them in the closest GICS peer bucket.
| Profile Item | AFRM | PYPL |
|---|---|---|
| Name | Affirm Holdings, Inc. | PayPal Holdings, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Financials | Financials |
| GICS Industry Group | Financial Services | Financial Services |
| GICS Industry | Financial Services | Financial Services |
| GICS Sub-Industry | Transaction & Payment Processing Services | Transaction & Payment Processing Services |
| Market Capitalization | 23.09 billion USD | 49.21 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | January 13, 2021 | July 6, 2015 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | AFRM | PYPL |
|---|---|---|
| Total Return (1Y) | -6.89% | -7.44% |
| Total Return (3Y, Annualized) | 40.23% | 4.14% |
| Total Return (5Y, Annualized) | -15.36% | -21.48% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
Affirm (AFRM) carries a highly aggressive beta of 3.70, indicating much higher sensitivity to broad-market moves, whereas PayPal (PYPL) is closer to market-like at 1.28 — a noticeable difference in market-sensitivity profile.
| Metric | AFRM | PYPL |
|---|---|---|
| Volatility (1Y, Annualized) | 58.20% | 42.40% |
| Beta (5Y) | 3.70 | 1.28 |
| Max Drawdown (5Y) | -94.35% | -81.84% |
| Avg. Volume (3M) | 4.46M | 11.78M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | AFRM | PYPL |
|---|---|---|
| Sharpe Ratio (1Y) | -0.19 | -0.28 |
| Sortino Ratio (1Y) | -0.28 | -0.37 |
Profitability
ROE (TTM)
Both Affirm (AFRM) at 44.49% and PayPal (PYPL) at 23.83% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.
AFRM
Financial Services industry group
44.49%
- Max
- 44.78%
- AFRM
- 44.49%
- Q3
- 21.85%
- Median
- 12.91%
- Q1
- 4.48%
- Min
- -18.71%
PYPL
Financial Services industry group
23.83%
- Max
- 44.78%
- PYPL
- 23.83%
- Q3
- 21.85%
- Median
- 12.91%
- Q1
- 4.48%
- Min
- -18.71%
Net Margin (TTM)
Affirm (AFRM) at 43.86% retains a top-quartile share of revenue as profit, ahead of PayPal (PYPL) at 13.78%, which keeps about the industry-typical share.
AFRM
Financial Services industry group
43.86%
- Max
- 62.84%
- AFRM
- 43.86%
- Q3
- 28.05%
- Median
- 15.36%
- Q1
- 4.82%
- Min
- -28.52%
PYPL
Financial Services industry group
13.78%
- Max
- 62.84%
- Q3
- 28.05%
- Median
- 15.36%
- PYPL
- 13.78%
- Q1
- 4.82%
- Min
- -28.52%
Operating Margin (TTM)
Both Affirm (AFRM) at 14.82% and PayPal (PYPL) at 18.41% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.
AFRM
Financial Services industry group
14.82%
- Max
- 107.33%
- Q3
- 55.90%
- Median
- 30.09%
- AFRM
- 14.82%
- Q1
- 14.60%
- Min
- -44.34%
PYPL
Financial Services industry group
18.41%
- Max
- 107.33%
- Q3
- 55.90%
- Median
- 30.09%
- PYPL
- 18.41%
- Q1
- 14.60%
- Min
- -44.34%
Profitability Metrics
| Metric | AFRM | PYPL |
|---|---|---|
| ROE (TTM) | 44.49% | 23.83% |
| ROA (TTM) | 2.42% | 4.70% |
| Net Margin (TTM) | 43.86% | 13.78% |
| Operating Margin (TTM) | 14.82% | 18.41% |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Affirm (AFRM) at 32.15% sits in the top revenue growth quartile, while PayPal (PYPL) at 4.32% is closer to the peer norm — faster top-line expansion for AFRM.
EPS Growth
Affirm (AFRM) at 3,586.67% clears its industry range for EPS growth, a much stronger earnings trajectory than PayPal (PYPL) at 35.59%, which is closer to a typical peer reading.
Growth Metrics
| Metric | AFRM | PYPL |
|---|---|---|
| Revenue Growth (YoY) | 32.15% | 4.32% |
| Revenue Growth (3Y CAGR) | 38.96% | 6.43% |
| EPS Growth (YoY) | 3,586.67% | 35.59% |
| EPS Growth (3Y CAGR) | -- | 37.30% |
Financial Strength
Current Ratio (MRQ)
current ratio doesn’t apply on either side: Affirm (AFRM) in Financial Services and PayPal (PYPL) in Financial Services both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.
Debt / Equity (MRQ)
debt-to-equity ratio is set aside for both: Affirm (AFRM) in Financial Services and PayPal (PYPL) in Financial Services run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.
Financial Strength Metrics
| Metric | AFRM | PYPL |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Affirm (AFRM) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile PayPal (PYPL) reports a yield of 0.95%, ranking against industry peers normally.
AFRM
Financial Services industry group
0.00%
- Max
- 9.77%
- Q3
- 3.92%
- Median
- 1.09%
- AFRM
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PYPL
Financial Services industry group
0.95%
- Max
- 9.77%
- Q3
- 3.92%
- Median
- 1.09%
- PYPL
- 0.95%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Affirm (AFRM) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile PayPal (PYPL) reports a payout of 10.69%, ranking against industry peers normally.
AFRM
Financial Services industry group
0.00%
- Max
- 241.07%
- Q3
- 97.36%
- Median
- 25.77%
- AFRM
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PYPL
Financial Services industry group
10.69%
- Max
- 241.07%
- Q3
- 97.36%
- Median
- 25.77%
- PYPL
- 10.69%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | AFRM | PYPL |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.95% |
| Dividend Payout Ratio (TTM) | 0.00% | 10.69% |
Valuation
P/E Ratio (TTM)
Both Affirm (AFRM) at 11.80 and PayPal (PYPL) at 11.31 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
AFRM
Financial Services industry group
11.80
- Max
- 45.85
- Q3
- 24.64
- Median
- 15.37
- AFRM
- 11.80
- Q1
- 9.68
- Min
- 0.16
PYPL
Financial Services industry group
11.31
- Max
- 45.85
- Q3
- 24.64
- Median
- 15.37
- PYPL
- 11.31
- Q1
- 9.68
- Min
- 0.16
P/S Ratio (TTM)
PayPal (PYPL) at 1.43 is priced about in line with its industry on P/S ratio, while Affirm (AFRM) at 5.03 sits in the pricier quartile — AFRM costs more per dollar of sales.
AFRM
Financial Services industry group
5.03
- Max
- 9.23
- AFRM
- 5.03
- Q3
- 4.57
- Median
- 2.72
- Q1
- 1.28
- Min
- -0.55
PYPL
Financial Services industry group
1.43
- Max
- 9.23
- Q3
- 4.57
- Median
- 2.72
- PYPL
- 1.43
- Q1
- 1.28
- Min
- -0.55
P/B Ratio (MRQ)
PayPal (PYPL) at 2.55 is valued about in line with its industry on P/B ratio, while Affirm (AFRM) at 4.01 carries an above-peer premium to book — AFRM is pricier on assets.
AFRM
Financial Services industry group
4.01
- Max
- 7.79
- AFRM
- 4.01
- Q3
- 3.63
- Median
- 1.57
- Q1
- 0.81
- Min
- -0.39
PYPL
Financial Services industry group
2.55
- Max
- 7.79
- Q3
- 3.63
- PYPL
- 2.55
- Median
- 1.57
- Q1
- 0.81
- Min
- -0.39
Valuation Metrics
| Metric | AFRM | PYPL |
|---|---|---|
| P/E Ratio (TTM) | 11.80 | 11.31 |
| P/S Ratio (TTM) | 5.03 | 1.43 |
| P/B Ratio (MRQ) | 4.01 | 2.55 |
| Free Cash Flow Yield (TTM) | -- | -- |