AFRM vs. SMCI: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFRM and SMCI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AFRM’s market capitalization stands at 22.30 billion USD, while SMCI’s is 28.98 billion USD, indicating their market valuations are broadly comparable.
AFRM’s beta of 3.58 points to significantly higher volatility compared to SMCI (beta: 1.40), suggesting AFRM has greater potential for both gains and losses relative to market movements.
| Symbol | AFRM | SMCI |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | Super Micro Computer, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Computer Hardware |
| CEO | Max Roth Levchin | Charles Liang |
| Price | 69.19 USD | 48.56 USD |
| Market Cap | 22.30 billion USD | 28.98 billion USD |
| Beta | 3.58 | 1.40 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | January 13, 2021 | March 29, 2007 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AFRM and SMCI 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.
SMCI
19.21%
Computer Hardware Industry
- Max
- 123.03%
- Q3
- 15.78%
- Median
- -13.44%
- Q1
- -119.16%
- Min
- -227.95%
In the upper quartile for the Computer Hardware industry, SMCI’s Return on Equity of 19.21% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
SMCI
12.50%
Computer Hardware Industry
- Max
- 30.37%
- Q3
- 20.44%
- Median
- 7.03%
- Q1
- -12.47%
- Min
- -31.70%
SMCI’s Return on Invested Capital of 12.50% is in line with the norm for the Computer Hardware industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
SMCI
5.34%
Computer Hardware Industry
- Max
- 40.72%
- Q3
- 10.87%
- Median
- 4.33%
- Q1
- -378.64%
- Min
- -753.20%
SMCI’s Net Profit Margin of 5.34% is aligned with the median group of its peers in the Computer Hardware industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
SMCI
6.09%
Computer Hardware Industry
- Max
- 42.27%
- Q3
- 13.53%
- Median
- 4.56%
- Q1
- -295.01%
- Min
- -592.84%
SMCI’s Operating Profit Margin of 6.09% is around the midpoint for the Computer Hardware industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AFRM | SMCI |
|---|---|---|
| Return on Equity (TTM) | -2.22% | 19.21% |
| Return on Assets (TTM) | -0.60% | 10.72% |
| Return on Invested Capital (TTM) | -0.85% | 12.50% |
| Net Profit Margin (TTM) | -2.07% | 5.34% |
| Operating Profit Margin (TTM) | -2.53% | 6.09% |
| Gross Profit Margin (TTM) | 71.61% | 11.27% |
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.
SMCI
6.66
Computer Hardware Industry
- Max
- 20.73
- Q3
- 11.54
- Median
- 2.69
- Q1
- 1.40
- Min
- 0.73
SMCI’s Current Ratio of 6.66 aligns with the median group of the Computer Hardware industry, indicating that its short-term liquidity is in line with its sector 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.
SMCI
0.38
Computer Hardware Industry
- Max
- 1.36
- Q3
- 0.67
- Median
- 0.04
- Q1
- 0.03
- Min
- 0.00
SMCI’s Debt-to-Equity Ratio of 0.38 is typical for the Computer Hardware industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
SMCI
32.50
Computer Hardware Industry
- Max
- 32.50
- Q3
- 21.85
- Median
- 4.98
- Q1
- -7.71
- Min
- -34.24
SMCI’s Interest Coverage Ratio of 32.50 is in the upper quartile for the Computer Hardware industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AFRM | SMCI |
|---|---|---|
| Current Ratio (TTM) | 63.09 | 6.66 |
| Quick Ratio (TTM) | 63.09 | 3.95 |
| Debt-to-Equity Ratio (TTM) | 2.56 | 0.38 |
| Debt-to-Asset Ratio (TTM) | 0.71 | 0.23 |
| Net Debt-to-EBITDA Ratio (TTM) | 19.75 | -0.06 |
| Interest Coverage Ratio (TTM) | -0.24 | 32.50 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AFRM and SMCI. 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.
SMCI
0.00%
Computer Hardware Industry
- Max
- 9.24%
- Q3
- 1.58%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SMCI 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.
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.
SMCI
0.00%
Computer Hardware Industry
- Max
- 193.79%
- Q3
- 30.72%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SMCI 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.
Dividend at a Glance
| Symbol | AFRM | SMCI |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
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.
SMCI
25.11
Computer Hardware Industry
- Max
- 24.60
- Q3
- 24.01
- Median
- 20.31
- Q1
- 18.24
- Min
- 13.38
At 25.11, SMCI’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Computer Hardware industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
SMCI
0.64
Computer Hardware Industry
- Max
- 9.77
- Q3
- 5.18
- Median
- 1.77
- Q1
- 1.17
- Min
- 0.02
The Forward PEG Ratio is often not a primary valuation metric in the Computer Hardware industry.
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.
SMCI
1.34
Computer Hardware Industry
- Max
- 57.61
- Q3
- 47.40
- Median
- 3.37
- Q1
- 1.56
- Min
- 0.43
In the lower quartile for the Computer Hardware industry, SMCI’s P/S Ratio of 1.34 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
SMCI
4.53
Computer Hardware Industry
- Max
- 21.21
- Q3
- 14.71
- Median
- 9.28
- Q1
- 3.74
- Min
- 0.43
SMCI’s P/B Ratio of 4.53 is within the conventional range for the Computer Hardware industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AFRM | SMCI |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -360.51 | 25.11 |
| Forward PEG Ratio (TTM) | -6.16 | 0.64 |
| Price-to-Sales Ratio (P/S, TTM) | 7.42 | 1.34 |
| Price-to-Book Ratio (P/B, TTM) | 7.80 | 4.53 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 36.63 | 814.59 |
| EV-to-EBITDA (TTM) | 93.06 | 20.93 |
| EV-to-Sales (TTM) | 9.41 | 1.34 |