Affirm vs FlexShopper Which Performs Better?

Affirm and FlexShopper are two fintech companies that offer different services related to financing and payment options. Affirm specializes in providing point-of-sale loans and installment plans for online and in-store purchases, catering to consumers who prefer flexibility in their payment options. On the other hand, FlexShopper focuses on lease-to-own financing, offering a variety of electronics, home goods, and other products through its e-commerce platform. Both companies have seen significant growth in recent years as consumers seek alternative financing options.

Affirm or FlexShopper?

When comparing Affirm and FlexShopper, 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 FlexShopper.

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 FlexShopper has a dividend yield of -%. 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, FlexShopper reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 -48.75 and FlexShopper's P/E ratio at 45.17. 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 7.67 while FlexShopper's P/B ratio is 1.37.

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 FlexShopper's is -0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Affirm's ROE at -16.49% and FlexShopper's ROE at 3.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $68.27 for Affirm and $1.86 for FlexShopper. Over the past year, Affirm's prices ranged from $22.25 to $72.82, with a yearly change of 227.28%. FlexShopper's prices fluctuated between $0.97 and $2.19, with a yearly change of 125.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.