AFRM vs. UPST: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFRM and UPST, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AFRM’s market capitalization of 22.30 billion USD is substantially larger than UPST’s 7.02 billion USD, indicating a significant difference in their market valuations.
AFRM’s beta of 3.58 points to significantly higher volatility compared to UPST (beta: 2.30), suggesting AFRM has greater potential for both gains and losses relative to market movements.
| Symbol | AFRM | UPST |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | Upstart Holdings, Inc. |
| Country | US | US |
| Sector | Technology | Financial Services |
| Industry | Software - Infrastructure | Financial - Credit Services |
| CEO | Max Roth Levchin | David J. Girouard |
| Price | 69.19 USD | 73.82 USD |
| Market Cap | 22.30 billion USD | 7.02 billion USD |
| Beta | 3.58 | 2.30 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | January 13, 2021 | December 16, 2020 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AFRM and UPST 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.
UPST
-10.63%
Financial - Credit Services Industry
- Max
- 34.05%
- Q3
- 18.70%
- Median
- 10.57%
- Q1
- 3.55%
- Min
- -12.12%
UPST has a negative Return on Equity of -10.63%. 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.
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.
UPST
-4.85%
Financial - Credit Services Industry
- Max
- 68.11%
- Q3
- 32.26%
- Median
- 9.52%
- Q1
- 3.37%
- Min
- -7.03%
Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Credit Services industry.
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.
UPST
-9.21%
Financial - Credit Services Industry
- Max
- 39.42%
- Q3
- 20.10%
- Median
- 12.91%
- Q1
- 5.82%
- Min
- -14.80%
UPST has a negative Net Profit Margin of -9.21%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
UPST
-14.94%
Financial - Credit Services Industry
- Max
- 77.26%
- Q3
- 42.86%
- Median
- 17.99%
- Q1
- 10.82%
- Min
- -14.94%
UPST has a negative Operating Profit Margin of -14.94%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | AFRM | UPST |
|---|---|---|
| Return on Equity (TTM) | -2.22% | -10.63% |
| Return on Assets (TTM) | -0.60% | -2.89% |
| Return on Invested Capital (TTM) | -0.85% | -4.85% |
| Net Profit Margin (TTM) | -2.07% | -9.21% |
| Operating Profit Margin (TTM) | -2.53% | -14.94% |
| Gross Profit Margin (TTM) | 71.61% | 99.03% |
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.
UPST
4.06
Financial - Credit Services Industry
- Max
- 8.15
- Q3
- 4.39
- Median
- 2.62
- Q1
- 1.06
- Min
- 0.15
For the Financial - Credit Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
UPST
2.04
Financial - Credit Services Industry
- Max
- 4.69
- Q3
- 2.55
- Median
- 1.20
- Q1
- 0.55
- Min
- 0.00
UPST’s Debt-to-Equity Ratio of 2.04 is typical for the Financial - Credit Services 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.
UPST
-2.43
Financial - Credit Services Industry
- Max
- 17.48
- Q3
- 7.42
- Median
- 1.59
- Q1
- 0.38
- Min
- -7.77
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Credit Services industry.
Financial Strength at a Glance
| Symbol | AFRM | UPST |
|---|---|---|
| Current Ratio (TTM) | 63.09 | 4.06 |
| Quick Ratio (TTM) | 63.09 | 4.06 |
| Debt-to-Equity Ratio (TTM) | 2.56 | 2.04 |
| Debt-to-Asset Ratio (TTM) | 0.71 | 0.60 |
| Net Debt-to-EBITDA Ratio (TTM) | 19.75 | -13.68 |
| Interest Coverage Ratio (TTM) | -0.24 | -2.43 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AFRM and UPST. 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.
UPST
0.00%
Financial - Credit Services Industry
- Max
- 14.68%
- Q3
- 2.97%
- Median
- 1.03%
- Q1
- 0.00%
- Min
- 0.00%
UPST 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.
UPST
0.00%
Financial - Credit Services Industry
- Max
- 169.58%
- Q3
- 38.15%
- Median
- 18.30%
- Q1
- 0.00%
- Min
- 0.00%
UPST 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 | UPST |
|---|---|---|
| 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.
UPST
-104.76
Financial - Credit Services Industry
- Max
- 42.04
- Q3
- 25.88
- Median
- 12.28
- Q1
- 9.55
- Min
- 3.09
UPST has a negative P/E Ratio of -104.76. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
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.
UPST
-2.82
Financial - Credit Services Industry
- Max
- 2.76
- Q3
- 1.57
- Median
- 0.82
- Q1
- 0.51
- Min
- 0.06
UPST has a negative Forward PEG Ratio of -2.82. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
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.
UPST
9.74
Financial - Credit Services Industry
- Max
- 6.24
- Q3
- 3.02
- Median
- 1.54
- Q1
- 0.75
- Min
- 0.32
The P/S Ratio is often not a primary valuation tool in the Financial - Credit Services industry.
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.
UPST
10.29
Financial - Credit Services Industry
- Max
- 3.58
- Q3
- 2.84
- Median
- 1.28
- Q1
- 0.84
- Min
- 0.07
At 10.29, UPST’s P/B Ratio is at an extreme premium to the Financial - Credit Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AFRM | UPST |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -360.51 | -104.76 |
| Forward PEG Ratio (TTM) | -6.16 | -2.82 |
| Price-to-Sales Ratio (P/S, TTM) | 7.42 | 9.74 |
| Price-to-Book Ratio (P/B, TTM) | 7.80 | 10.29 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 36.63 | 66.37 |
| EV-to-EBITDA (TTM) | 93.06 | -137.40 |
| EV-to-Sales (TTM) | 9.41 | 10.81 |