Affirm Holdings Inc (AFRM)vsEncore Capital Group Inc (ECPG)
AFRM
Affirm Holdings Inc
$74.84
+2.07%
FINANCIAL SERVICES · Cap: $24.52B
ECPG
Encore Capital Group Inc
$101.62
+2.17%
FINANCIAL SERVICES · Cap: $2.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Affirm Holdings Inc generates 124% more annual revenue ($4.26B vs $1.90B). AFRM leads profitability with a 45.3% profit margin vs 15.9%. ECPG appears more attractively valued with a PEG of 0.17. ECPG earns a higher WallStSmart Score of 83/100 (A-).
AFRM
Strong Buy70
out of 100
Grade: B
ECPG
Exceptional Buy83
out of 100
Grade: A-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 35 in profit
Keeps 45 of every $100 in revenue as profit
Revenue surging 33.0% year-over-year
Earnings expanding 2187.0% YoY
Attractively priced relative to earnings
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 38.0%
Every $100 of equity generates 29 in profit
Reasonable price relative to book value
Areas to Watch
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : AFRM
The strongest argument for AFRM centers on Return on Equity, Profit Margin, Revenue Growth. Profitability is solid with margins at 45.3% and operating margin at 12.6%. Revenue growth of 33.0% demonstrates continued momentum.
Bull Case : ECPG
The strongest argument for ECPG centers on PEG Ratio, P/E Ratio, Operating Margin. Profitability is solid with margins at 15.9% and operating margin at 38.0%. Revenue growth of 11.3% demonstrates continued momentum.
Bear Case : AFRM
The primary concerns for AFRM are Debt/Equity, Piotroski F-Score, PEG Ratio. Debt-to-equity of 1.79 is elevated, increasing financial risk.
Bear Case : ECPG
The primary concerns for ECPG are Free Cash Flow, Altman Z-Score, Debt/Equity. Debt-to-equity of 4.52 is elevated, increasing financial risk.
Key Dynamics to Monitor
AFRM profiles as a growth stock while ECPG is a mature play — different risk/reward profiles.
AFRM carries more volatility with a beta of 3.82 — expect wider price swings.
AFRM is growing revenue faster at 33.0% — sustainability is the question.
AFRM generates stronger free cash flow (229M), providing more financial flexibility.
Bottom Line
ECPG scores higher overall (83/100 vs 70/100), backed by strong 15.9% margins and 11.3% revenue growth. Both earn "Exceptional Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Affirm Holdings Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Affirm Holdings, Inc. operates a platform for digital and mobile commerce in the United States and Canada. The company is headquartered in San Francisco, California.
Visit Website →Encore Capital Group Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Encore Capital Group, Inc., a specialty finance company, offers debt recovery solutions and other related services to consumers in a variety of financial assets worldwide. The company is headquartered in San Diego, California.
Compare with Other CREDIT SERVICES Stocks
Want to dig deeper into these stocks?