Affirm vs Avant Which Performs Better?

Affirm Holdings and Avant are two leading financial technology companies that provide personal loan services to consumers. Affirm, founded in 2012, is known for its transparent and user-friendly approach to lending, offering installment loans with clear terms and no hidden fees. Avant, established in 2012 as well, specializes in providing access to credit for consumers with lower credit scores, offering unsecured personal loans with flexible terms. Both companies have experienced significant growth and have attracted attention from investors in the fintech industry.

Affirm or Avant?

When comparing Affirm and Avant, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Affirm and Avant.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Affirm has a dividend yield of -%, while Avant has a dividend yield of 0.96%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Affirm reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Avant reports a 5-year dividend growth of 0.00% year and a payout ratio of 23.74%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Affirm P/E ratio at -40.52 and Avant's P/E ratio at 24.17. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Affirm P/B ratio is 6.38 while Avant's P/B ratio is 5.63.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Affirm has seen a 5-year revenue growth of 4.24%, while Avant's is 0.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Affirm's ROE at -16.49% and Avant's ROE at 23.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $47.98 for Affirm and ¥1964.00 for Avant. Over the past year, Affirm's prices ranged from $21.88 to $57.76, with a yearly change of 163.99%. Avant's prices fluctuated between ¥1199.00 and ¥2369.00, with a yearly change of 97.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.