Affirm vs Global Payments Which Offers More Value?

Affirm Holdings and Global Payments are two prominent players in the financial technology sector, each operating in distinct niches within the industry. Affirm is known for its user-friendly buy now, pay later platform, while Global Payments specializes in providing payment processing services to businesses worldwide. Both companies have experienced significant growth in recent years, driven by the increasing demand for digital payment solutions. Investors looking to capitalize on the booming fintech sector may find these stocks promising options for their portfolios.

Affirm or Global Payments?

When comparing Affirm and Global Payments, 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 Global Payments.

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 Global Payments has a dividend yield of 0.86%. 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, Global Payments reports a 5-year dividend growth of 90.37% year and a payout ratio of 18.71%.

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 -49.05 and Global Payments's P/E ratio at 21.58. 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 7.72 while Global Payments's P/B ratio is 1.29.

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 Global Payments's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Affirm's ROE at -16.49% and Global Payments's ROE at 6.04%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $67.64 for Affirm and $115.76 for Global Payments. Over the past year, Affirm's prices ranged from $22.25 to $72.82, with a yearly change of 227.28%. Global Payments's prices fluctuated between $91.60 and $141.78, with a yearly change of 54.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.