AFRM vs. TSM: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AFRM and TSM, 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
TSM stands out with 994.57 billion USD in market value—about 65.26× AFRM’s market cap of 15.24 billion USD.
AFRM’s beta of 3.66 points to much larger expected swings compared to TSM’s calmer 1.32, suggesting both higher upside and downside potential.
TSM is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike AFRM, which is purely domestic.
| Symbol | AFRM | TSM |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | Taiwan Semiconductor Manufacturing Company Limited |
| Country | US | TW |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Semiconductors |
| CEO | Mr. Max Roth Levchin | Dr. C. C. Wei Ph.D. |
| Price | 47.24 USD | 191.76 USD |
| Market Cap | 15.24 billion USD | 994.57 billion USD |
| Beta | 3.66 | 1.32 |
| Exchange | NASDAQ | NYSE |
| IPO Date | January 13, 2021 | October 9, 1997 |
| ADR | No | Yes |
Performance Comparison
This chart compares the performance of AFRM and TSM 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 TSM 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 TSM at 19.45 signals healthy earnings.
- AFRM posts a negative forward PEG of -1.38, hinting at anticipated earnings decline, whereas TSM at 1.10 has projections for stable or growing earnings.
| Symbol | AFRM | TSM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -246.14 | 19.45 |
| Forward PEG Ratio (TTM) | -1.38 | 1.10 |
| Price-to-Sales Ratio (P/S, TTM) | 5.07 | 8.11 |
| Price-to-Book Ratio (P/B, TTM) | 5.32 | 5.54 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 25.04 | 27.60 |
| EV-to-EBITDA (TTM) | 69.85 | 10.81 |
| EV-to-Sales (TTM) | 7.07 | 7.56 |
| EV-to-Free Cash Flow (TTM) | 34.90 | 25.74 |
Dividend Comparison
AFRM offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while TSM provides a 1.63% dividend yield, giving investors a steady income stream.
| Symbol | AFRM | TSM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.63% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AFRM and TSM, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- With negative EBIT (-0.24), AFRM cannot cover its interest payments. TSM, with an interest coverage of 280.65, meets its interest obligations.
| Symbol | AFRM | TSM |
|---|---|---|
| Current Ratio (TTM) | 63.09 | 2.39 |
| Quick Ratio (TTM) | 63.09 | 2.18 |
| Debt-to-Equity Ratio (TTM) | 2.56 | 0.21 |
| Debt-to-Assets Ratio (TTM) | 0.71 | 0.14 |
| Interest Coverage Ratio (TTM) | -0.24 | 280.65 |