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

Updated on July 7, 2025

Here’s a clear look at AFRM and TXN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

TXN’s market capitalization of 196.25 billion USD is significantly greater than AFRM’s 22.30 billion USD, highlighting its more substantial market valuation.

AFRM’s beta of 3.58 points to significantly higher volatility compared to TXN (beta: 0.99), suggesting AFRM has greater potential for both gains and losses relative to market movements.

Symbol	AFRM	TXN
Company Name	Affirm Holdings, Inc.	Texas Instruments Incorporated
Country	US	US
Sector	Technology	Technology
Industry	Software - Infrastructure	Semiconductors
CEO	Max Roth Levchin	Haviv Ilan
Price	69.19 USD	216.02 USD
Market Cap	22.30 billion USD	196.25 billion USD
Beta	3.58	0.99
Exchange	NASDAQ	NASDAQ
IPO Date	January 13, 2021	June 1, 1972
ADR	No	No

Historical Performance

This chart compares the performance of AFRM and TXN 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. TXN: 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.

TXN

28.75%

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, TXN’s Return on Equity of 28.75% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AFRM vs. TXN: 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.

TXN

15.78%

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, TXN’s Return on Invested Capital of 15.78% signifies a highly effective use of its capital to generate profits when compared to its peers.

AFRM vs. TXN: 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.

TXN

30.36%

Semiconductors Industry

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

A Net Profit Margin of 30.36% places TXN in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.

AFRM vs. TXN: 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.

TXN

34.29%

Semiconductors Industry

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

An Operating Profit Margin of 34.29% places TXN in the upper quartile for the Semiconductors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

Symbol	AFRM	TXN
Return on Equity (TTM)	-2.22%	28.75%
Return on Assets (TTM)	-0.60%	14.44%
Return on Invested Capital (TTM)	-0.85%	15.78%
Net Profit Margin (TTM)	-2.07%	30.36%
Operating Profit Margin (TTM)	-2.53%	34.29%
Gross Profit Margin (TTM)	71.61%	58.02%

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.

TXN

5.26

Semiconductors Industry

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

TXN’s Current Ratio of 5.26 is in the upper quartile for the Semiconductors industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

AFRM vs. TXN: 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.

TXN

0.78

Semiconductors Industry

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

TXN’s leverage is in the upper quartile of the Semiconductors industry, with a Debt-to-Equity Ratio of 0.78. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

AFRM vs. TXN: 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.

TXN

10.58

Semiconductors Industry

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

TXN’s Interest Coverage Ratio of 10.58 is positioned comfortably within the norm for the Semiconductors industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

Symbol	AFRM	TXN
Current Ratio (TTM)	63.09	5.26
Quick Ratio (TTM)	63.09	3.37
Debt-to-Equity Ratio (TTM)	2.56	0.78
Debt-to-Asset Ratio (TTM)	0.71	0.38
Net Debt-to-EBITDA Ratio (TTM)	19.75	1.32
Interest Coverage Ratio (TTM)	-0.24	10.58

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

AFRM vs. TXN: 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.

TXN

2.49%

Semiconductors Industry

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

With a Dividend Yield of 2.49%, TXN offers a more attractive income stream than most of its peers in the Semiconductors industry, signaling a strong commitment to shareholder returns.

AFRM vs. TXN: 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.

TXN

99.53%

Semiconductors Industry

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

TXN’s Dividend Payout Ratio of 99.53% is in the upper quartile for the Semiconductors industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

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

Dividend at a Glance

Symbol	AFRM	TXN
Dividend Yield (TTM)	0.00%	2.49%
Dividend Payout Ratio (TTM)	0.00%	99.53%

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.

TXN

40.34

Semiconductors Industry

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

TXN’s P/E Ratio of 40.34 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. TXN: 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.

TXN

2.00

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. TXN: 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.

TXN

12.23

Semiconductors Industry

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

TXN’s P/S Ratio of 12.23 is in the upper echelon for the Semiconductors industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

AFRM vs. TXN: 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.

TXN

11.98

Semiconductors Industry

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

TXN’s P/B Ratio of 11.98 is in the upper tier for the Semiconductors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

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

Valuation at a Glance

Symbol	AFRM	TXN
Price-to-Earnings Ratio (P/E, TTM)	-360.51	40.34
Forward PEG Ratio (TTM)	-6.16	2.00
Price-to-Sales Ratio (P/S, TTM)	7.42	12.23
Price-to-Book Ratio (P/B, TTM)	7.80	11.98
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	36.63	134.88
EV-to-EBITDA (TTM)	93.06	27.08
EV-to-Sales (TTM)	9.41	12.86