WallStSmart

Affirm Holdings Inc (AFRM)vsPayPal Holdings Inc (PYPL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PayPal Holdings Inc generates 701% more annual revenue ($34.13B vs $4.26B). AFRM leads profitability with a 45.3% profit margin vs 14.4%. PYPL appears more attractively valued with a PEG of 0.93. AFRM earns a higher WallStSmart Score of 70/100 (B).

AFRM

Strong Buy

70

out of 100

Grade: B

Growth: 10.0Profit: 7.5Value: 5.0Quality: 5.0
Piotroski: 3/9Altman Z: 0.87

PYPL

Buy

65

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 7.7Quality: 6.0
Piotroski: 6/9Altman Z: 1.66

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AFRM5 strengths · Avg: 9.6/10
Return on EquityProfitability
35.2%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
45.3%10/10

Keeps 45 of every $100 in revenue as profit

Revenue GrowthGrowth
33.0%10/10

Revenue surging 33.0% year-over-year

EPS GrowthGrowth
2187.0%10/10

Earnings expanding 2187.0% YoY

P/E RatioValuation
12.9x8/10

Attractively priced relative to earnings

PYPL5 strengths · Avg: 8.6/10
P/E RatioValuation
9.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
24.7%9/10

Every $100 of equity generates 25 in profit

PEG RatioValuation
0.938/10

Growing faster than its price suggests

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.77B8/10

Generating 1.8B in free cash flow

Areas to Watch

AFRM4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.793/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
8.642/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.872/10

Distress zone — elevated risk

PYPL3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

Comparative Analysis Report

WallStSmart Research

Bull 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 : PYPL

The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.93 suggests the stock is reasonably priced for its growth.

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 : PYPL

The primary concerns for PYPL are Revenue Growth, Altman Z-Score, EPS Growth.

Key Dynamics to Monitor

AFRM profiles as a growth stock while PYPL is a value play — different risk/reward profiles.

AFRM carries more volatility with a beta of 3.61 — expect wider price swings.

AFRM is growing revenue faster at 33.0% — sustainability is the question.

PYPL generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

AFRM scores higher overall (70/100 vs 65/100), backed by strong 45.3% margins and 33.0% revenue growth. Both earn "Strong Buy" and "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.

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PayPal Holdings Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

PayPal Holdings, Inc. is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee.

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