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

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

Company Profile

SymbolAFRMVRSN
Company NameAffirm Holdings, Inc.VeriSign, Inc.
CountryUnited StatesUnited States
GICS SectorFinancialsInformation Technology
GICS IndustryFinancial ServicesIT Services
Market Capitalization24.51 billion USD25.02 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJanuary 13, 2021January 30, 1998
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AFRM and VRSN 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. VRSN: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAFRMVRSN
5-Day Price Return-2.82%-2.74%
13-Week Price Return8.95%-7.55%
26-Week Price Return93.40%4.87%
52-Week Price Return94.95%45.29%
Month-to-Date Return2.97%-4.18%
Year-to-Date Return23.56%29.44%
10-Day Avg. Volume6.85M0.67M
3-Month Avg. Volume6.87M0.80M
3-Month Volatility61.23%28.36%
Beta3.640.79

Profitability

Return on Equity (TTM)

AFRM

1.80%

Financial Services Industry

Max
39.28%
Q3
18.88%
Median
9.97%
Q1
4.03%
Min
-10.25%

AFRM’s Return on Equity of 1.80% is in the lower quartile for the Financial Services industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

VRSN

113.55%

IT Services Industry

Max
32.78%
Q3
19.28%
Median
13.86%
Q1
5.50%
Min
-10.00%

VRSN’s Return on Equity of 113.55% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

AFRM vs. VRSN: A comparison of their Return on Equity (TTM) against their respective Financial Services and IT Services industry benchmarks.

Net Profit Margin (TTM)

AFRM

1.62%

Financial Services Industry

Max
52.16%
Q3
25.35%
Median
12.68%
Q1
6.11%
Min
-11.69%

Falling into the lower quartile for the Financial Services industry, AFRM’s Net Profit Margin of 1.62% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

VRSN

50.03%

IT Services Industry

Max
19.71%
Q3
11.01%
Median
6.66%
Q1
2.96%
Min
-6.22%

VRSN’s Net Profit Margin of 50.03% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

AFRM vs. VRSN: A comparison of their Net Profit Margin (TTM) against their respective Financial Services and IT Services industry benchmarks.

Operating Profit Margin (TTM)

AFRM

-0.29%

Financial Services Industry

Max
75.57%
Q3
37.78%
Median
19.09%
Q1
10.04%
Min
-19.42%

AFRM has a negative Operating Profit Margin of -0.29%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

VRSN

67.89%

IT Services Industry

Max
22.44%
Q3
14.90%
Median
8.82%
Q1
4.91%
Min
-9.89%

VRSN’s Operating Profit Margin of 67.89% is exceptionally high, placing it well above the typical range for the IT Services industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

AFRM vs. VRSN: A comparison of their Operating Profit Margin (TTM) against their respective Financial Services and IT Services industry benchmarks.

Profitability at a Glance

SymbolAFRMVRSN
Return on Equity (TTM)1.80%113.55%
Return on Assets (TTM)0.49%55.87%
Net Profit Margin (TTM)1.62%50.03%
Operating Profit Margin (TTM)-0.29%67.89%
Gross Profit Margin (TTM)92.49%87.88%

Financial Strength

Current Ratio (MRQ)

AFRM

4.20

Financial Services Industry

Max
4.83
Q3
2.70
Median
1.44
Q1
0.86
Min
0.01

For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

VRSN

0.54

IT Services Industry

Max
3.17
Q3
2.00
Median
1.47
Q1
1.05
Min
0.52

VRSN’s Current Ratio of 0.54 falls into the lower quartile for the IT Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AFRM vs. VRSN: A comparison of their Current Ratio (MRQ) against their respective Financial Services and IT Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AFRM

2.48

Financial Services Industry

Max
5.07
Q3
2.14
Median
0.66
Q1
0.12
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.

VRSN

1.07

IT Services Industry

Max
3.11
Q3
1.55
Median
0.55
Q1
0.17
Min
0.00

VRSN’s Debt-to-Equity Ratio of 1.07 is typical for the IT Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AFRM vs. VRSN: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Financial Services and IT Services industry benchmarks.

Interest Coverage Ratio (TTM)

AFRM

-3.76

Financial Services Industry

Max
136.23
Q3
56.08
Median
6.55
Q1
2.01
Min
-33.27

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.

VRSN

27.96

IT Services Industry

Max
129.00
Q3
56.00
Median
11.69
Q1
0.77
Min
-28.15

VRSN’s Interest Coverage Ratio of 27.96 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.

AFRM vs. VRSN: A comparison of their Interest Coverage Ratio (TTM) against their respective Financial Services and IT Services industry benchmarks.

Financial Strength at a Glance

SymbolAFRMVRSN
Current Ratio (MRQ)4.200.54
Quick Ratio (MRQ)4.200.50
Debt-to-Equity Ratio (MRQ)2.481.07
Interest Coverage Ratio (TTM)-3.7627.96

Growth

Revenue Growth

AFRM vs. VRSN: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AFRM vs. VRSN: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AFRM

0.00%

Financial Services Industry

Max
8.12%
Q3
3.37%
Median
1.70%
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.

VRSN

0.00%

IT Services Industry

Max
2.79%
Q3
1.76%
Median
0.58%
Q1
0.00%
Min
0.00%

VRSN 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.

AFRM vs. VRSN: A comparison of their Dividend Yield (TTM) against their respective Financial Services and IT Services industry benchmarks.

Dividend Payout Ratio (TTM)

AFRM

0.00%

Financial Services Industry

Max
132.10%
Q3
64.32%
Median
18.23%
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.

VRSN

0.00%

IT Services Industry

Max
107.85%
Q3
52.62%
Median
22.53%
Q1
0.00%
Min
0.00%

VRSN 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.

AFRM vs. VRSN: A comparison of their Dividend Payout Ratio (TTM) against their respective Financial Services and IT Services industry benchmarks.

Dividend at a Glance

SymbolAFRMVRSN
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

AFRM

469.59

Financial Services Industry

Max
45.81
Q3
30.21
Median
16.29
Q1
10.14
Min
0.70

At 469.59, AFRM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

VRSN

31.08

IT Services Industry

Max
56.41
Q3
33.17
Median
23.17
Q1
16.18
Min
6.62

VRSN’s P/E Ratio of 31.08 is within the middle range for the IT Services 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. VRSN: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Financial Services and IT Services industry benchmarks.

Price-to-Sales Ratio (TTM)

AFRM

7.60

Financial Services Industry

Max
10.88
Q3
5.34
Median
2.64
Q1
1.24
Min
0.06

The P/S Ratio is often not a primary valuation tool in the Financial Services industry.

VRSN

15.55

IT Services Industry

Max
5.99
Q3
4.26
Median
1.93
Q1
0.97
Min
0.12

With a P/S Ratio of 15.55, VRSN trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AFRM vs. VRSN: A comparison of their Price-to-Sales Ratio (TTM) against their respective Financial Services and IT Services industry benchmarks.

Price-to-Book Ratio (MRQ)

AFRM

7.27

Financial Services Industry

Max
7.93
Q3
3.78
Median
1.49
Q1
0.88
Min
0.08

AFRM’s P/B Ratio of 7.27 is in the upper tier for the Financial Services 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.

VRSN

11.17

IT Services Industry

Max
12.34
Q3
7.54
Median
3.84
Q1
2.52
Min
0.88

VRSN’s P/B Ratio of 11.17 is in the upper tier for the IT Services 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. VRSN: A comparison of their Price-to-Book Ratio (MRQ) against their respective Financial Services and IT Services industry benchmarks.

Valuation at a Glance

SymbolAFRMVRSN
Price-to-Earnings Ratio (TTM)469.5931.08
Price-to-Sales Ratio (TTM)7.6015.55
Price-to-Book Ratio (MRQ)7.2711.17
Price-to-Free Cash Flow Ratio (TTM)40.7326.16
AFRM vs. VRSN: A Head-to-Head Stock Comparison