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

Updated on July 7, 2025

Here’s a clear look at AFRM and UMC, 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 UMC’s is 19.66 billion USD, indicating their market valuations are broadly comparable.

AFRM’s beta of 3.58 points to significantly higher volatility compared to UMC (beta: 1.29), suggesting AFRM has greater potential for both gains and losses relative to market movements.

UMC is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AFRM, on the other hand, is a domestic entity.

Symbol	AFRM	UMC
Company Name	Affirm Holdings, Inc.	United Microelectronics Corporation
Country	US	TW
Sector	Technology	Technology
Industry	Software - Infrastructure	Semiconductors
CEO	Max Roth Levchin	Jia Cong Hung
Price	69.19 USD	7.83 USD
Market Cap	22.30 billion USD	19.66 billion USD
Beta	3.58	1.29
Exchange	NASDAQ	NYSE
IPO Date	January 13, 2021	September 19, 2000
ADR	No	Yes

Historical Performance

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

UMC

12.46%

Semiconductors Industry

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

UMC’s Return on Equity of 12.46% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.

AFRM vs. UMC: 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.

UMC

8.33%

Semiconductors Industry

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

UMC’s Return on Invested Capital of 8.33% is in line with the norm for the Semiconductors industry, reflecting a standard level of efficiency in generating profits from its capital base.

AFRM vs. UMC: 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.

UMC

19.57%

Semiconductors Industry

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

UMC’s Net Profit Margin of 19.57% is aligned with the median group of its peers in the Semiconductors industry. This indicates its ability to convert revenue into profit is typical for the sector.

AFRM vs. UMC: 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.

UMC

21.02%

Semiconductors Industry

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

UMC’s Operating Profit Margin of 21.02% is around the midpoint for the Semiconductors industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

Symbol	AFRM	UMC
Return on Equity (TTM)	-2.22%	12.46%
Return on Assets (TTM)	-0.60%	8.05%
Return on Invested Capital (TTM)	-0.85%	8.33%
Net Profit Margin (TTM)	-2.07%	19.57%
Operating Profit Margin (TTM)	-2.53%	21.02%
Gross Profit Margin (TTM)	71.61%	31.17%

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.

UMC

2.64

Semiconductors Industry

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

UMC’s Current Ratio of 2.64 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.

AFRM vs. UMC: 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.

UMC

0.15

Semiconductors Industry

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

UMC’s Debt-to-Equity Ratio of 0.15 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AFRM vs. UMC: 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.

UMC

29.08

Semiconductors Industry

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

UMC’s Interest Coverage Ratio of 29.08 is positioned comfortably within the norm for the Semiconductors industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

Symbol	AFRM	UMC
Current Ratio (TTM)	63.09	2.64
Quick Ratio (TTM)	63.09	2.15
Debt-to-Equity Ratio (TTM)	2.56	0.15
Debt-to-Asset Ratio (TTM)	0.71	0.10
Net Debt-to-EBITDA Ratio (TTM)	19.75	-0.47
Interest Coverage Ratio (TTM)	-0.24	29.08

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

AFRM vs. UMC: 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.

UMC

6.51%

Semiconductors Industry

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

UMC’s Dividend Yield of 6.51% is exceptionally high, placing it well above the typical range for the Semiconductors industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

AFRM vs. UMC: 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.

UMC

81.53%

Semiconductors Industry

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

UMC’s Dividend Payout Ratio of 81.53% 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. UMC: A comparison of their Payout Ratio against their respective Software - Infrastructure and Semiconductors industry benchmarks.

Dividend at a Glance

Symbol	AFRM	UMC
Dividend Yield (TTM)	0.00%	6.51%
Dividend Payout Ratio (TTM)	0.00%	81.53%

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.

UMC

11.85

Semiconductors Industry

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

In the lower quartile for the Semiconductors industry, UMC’s P/E Ratio of 11.85 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AFRM vs. UMC: 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.

UMC

0.78

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. UMC: 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.

UMC

2.33

Semiconductors Industry

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

UMC’s P/S Ratio of 2.33 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. UMC: 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.

UMC

1.40

Semiconductors Industry

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

UMC’s P/B Ratio of 1.40 is in the lower quartile for the Semiconductors industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

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

Valuation at a Glance

Symbol	AFRM	UMC
Price-to-Earnings Ratio (P/E, TTM)	-360.51	11.85
Forward PEG Ratio (TTM)	-6.16	0.78
Price-to-Sales Ratio (P/S, TTM)	7.42	2.33
Price-to-Book Ratio (P/B, TTM)	7.80	1.40
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	36.63	26.88
EV-to-EBITDA (TTM)	93.06	4.78
EV-to-Sales (TTM)	9.41	2.12