Affirm vs Progressive

Affirm and Progressive are two prominent companies in the financial services sector, offering unique investment opportunities for investors. Affirm is a fintech company that specializes in providing alternative payment solutions, while Progressive is an insurance company known for its innovative approach to coverage. Both stocks have shown strong performance in recent years, attracting the attention of investors looking for growth potential in different sectors of the economy. Understanding the key differences and similarities between Affirm and Progressive can help investors make informed decisions about their investment portfolios.

Affirm or Progressive?

When comparing Affirm and Progressive, 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 Progressive.

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 Progressive has a dividend yield of 0.46%. 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, Progressive reports a 5-year dividend growth of -18.68% year and a payout ratio of 10.18%.

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 -29.16 and Progressive's P/E ratio at 21.35. 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 5.53 while Progressive's P/B ratio is 6.31.

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 Progressive's is 0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Affirm's ROE at -19.62% and Progressive's ROE at 33.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $47.23 for Affirm and $249.74 for Progressive. Over the past year, Affirm's prices ranged from $15.97 to $52.48, with a yearly change of 228.55%. Progressive's prices fluctuated between $149.14 and $260.46, with a yearly change of 74.64%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.