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

Updated on July 7, 2025

Here’s a clear look at AFRM and TER, 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 TER’s is 14.93 billion USD, indicating their market valuations are broadly comparable.

AFRM’s beta of 3.58 points to significantly higher volatility compared to TER (beta: 1.67), suggesting AFRM has greater potential for both gains and losses relative to market movements.

Symbol	AFRM	TER
Company Name	Affirm Holdings, Inc.	Teradyne, Inc.
Country	US	US
Sector	Technology	Technology
Industry	Software - Infrastructure	Semiconductors
CEO	Max Roth Levchin	Gregory Stephen Smith
Price	69.19 USD	93.06 USD
Market Cap	22.30 billion USD	14.93 billion USD
Beta	3.58	1.67
Exchange	NASDAQ	NASDAQ
IPO Date	January 13, 2021	September 14, 1970
ADR	No	No

Historical Performance

This chart compares the performance of AFRM and TER 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.

AFRM vs. TER: Growth of a $10,000 investment over the past one year.

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.

TER

17.69%

Semiconductors Industry

Max: 41.84%
Q3: 15.81%
Median: 6.31%
Q1: -5.54%
Min: -30.12%

In the upper quartile for the Semiconductors industry, TER’s Return on Equity of 17.69% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AFRM vs. TER: A comparison of their ROE against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

TER

17.02%

Semiconductors Industry

Max: 30.91%
Q3: 11.34%
Median: 4.08%
Q1: -2.17%
Min: -19.59%

In the upper quartile for the Semiconductors industry, TER’s Return on Invested Capital of 17.02% signifies a highly effective use of its capital to generate profits when compared to its peers.

AFRM vs. TER: A comparison of their ROIC against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

TER

19.86%

Semiconductors Industry

Max: 51.69%
Q3: 19.67%
Median: 8.56%
Q1: -5.44%
Min: -38.60%

A Net Profit Margin of 19.86% places TER in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.

AFRM vs. TER: A comparison of their Net Profit Margin against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

TER

20.01%

Semiconductors Industry

Max: 58.03%
Q3: 22.12%
Median: 8.40%
Q1: -3.73%
Min: -36.14%

TER’s Operating Profit Margin of 20.01% is around the midpoint for the Semiconductors industry, indicating that its efficiency in managing core business operations is typical for the sector.

AFRM vs. TER: A comparison of their Operating Margin against their respective Software - Infrastructure and Semiconductors industry benchmarks.

Profitability at a Glance

Symbol	AFRM	TER
Return on Equity (TTM)	-2.22%	17.69%
Return on Assets (TTM)	-0.60%	15.57%
Return on Invested Capital (TTM)	-0.85%	17.02%
Net Profit Margin (TTM)	-2.07%	19.86%
Operating Profit Margin (TTM)	-2.53%	20.01%
Gross Profit Margin (TTM)	71.61%	59.29%

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.

TER

2.70

Semiconductors Industry

Max: 9.10
Q3: 5.23
Median: 3.09
Q1: 2.49
Min: 1.02

TER’s Current Ratio of 2.70 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.

AFRM vs. TER: A comparison of their Current Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

TER

0.02

Semiconductors Industry

Max: 0.97
Q3: 0.46
Median: 0.21
Q1: 0.05
Min: 0.00

Falling into the lower quartile for the Semiconductors industry, TER’s Debt-to-Equity Ratio of 0.02 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

AFRM vs. TER: A comparison of their D/E Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

TER

-6,055.69

Semiconductors Industry

Max: 36.25
Q3: 29.12
Median: 7.01
Q1: -1.22
Min: -18.18

TER has a negative Interest Coverage Ratio of -6,055.69. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

AFRM vs. TER: A comparison of their Interest Coverage against their respective Software - Infrastructure and Semiconductors industry benchmarks.

Financial Strength at a Glance

Symbol	AFRM	TER
Current Ratio (TTM)	63.09	2.70
Quick Ratio (TTM)	63.09	2.17
Debt-to-Equity Ratio (TTM)	2.56	0.02
Debt-to-Asset Ratio (TTM)	0.71	0.02
Net Debt-to-EBITDA Ratio (TTM)	19.75	-0.57
Interest Coverage Ratio (TTM)	-0.24	-6055.69

Growth

The following charts compare key year-over-year (YoY) growth metrics for AFRM and TER. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AFRM vs. TER: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AFRM vs. TER: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AFRM vs. TER: A comparison of their annual year-over-year 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.

TER

0.52%

Semiconductors Industry

Max: 6.48%
Q3: 0.93%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

TER’s Dividend Yield of 0.52% is consistent with its peers in the Semiconductors industry, providing a dividend return that is standard for its sector.

AFRM vs. TER: A comparison of their Dividend Yield against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

TER

13.42%

Semiconductors Industry

Max: 204.29%
Q3: 31.85%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

TER’s Dividend Payout Ratio of 13.42% is within the typical range for the Semiconductors industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AFRM vs. TER: A comparison of their Payout Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

Dividend at a Glance

Symbol	AFRM	TER
Dividend Yield (TTM)	0.00%	0.52%
Dividend Payout Ratio (TTM)	0.00%	13.42%

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.

TER

26.04

Semiconductors Industry

Max: 86.15
Q3: 47.38
Median: 27.87
Q1: 18.89
Min: 4.73

TER’s P/E Ratio of 26.04 is within the middle range for the Semiconductors industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AFRM vs. TER: A comparison of their P/E Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

TER

0.81

Semiconductors Industry

Max: 4.73
Q3: 2.80
Median: 1.11
Q1: 0.68
Min: 0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

AFRM vs. TER: A comparison of their Forward PEG Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

TER

5.14

Semiconductors Industry

Max: 21.96
Q3: 10.21
Median: 4.45
Q1: 2.32
Min: 0.48

TER’s P/S Ratio of 5.14 aligns with the market consensus for the Semiconductors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AFRM vs. TER: A comparison of their P/S Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

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.

TER

4.06

Semiconductors Industry

Max: 13.12
Q3: 6.49
Median: 3.31
Q1: 1.74
Min: 0.23

TER’s P/B Ratio of 4.06 is within the conventional range for the Semiconductors 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.

AFRM vs. TER: A comparison of their P/B Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

Valuation at a Glance

Symbol	AFRM	TER
Price-to-Earnings Ratio (P/E, TTM)	-360.51	26.04
Forward PEG Ratio (TTM)	-6.16	0.81
Price-to-Sales Ratio (P/S, TTM)	7.42	5.14
Price-to-Book Ratio (P/B, TTM)	7.80	4.06
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	36.63	24.54
EV-to-EBITDA (TTM)	93.06	20.29
EV-to-Sales (TTM)	9.41	5.00