Bread Financial vs Affirm Which Performs Better?

Bread Financial and Affirm are two financial technology companies that offer installment payment options for consumers. Both companies have seen significant growth in recent years as online shopping continues to increase in popularity. While Bread Financial focuses primarily on providing point-of-sale financing solutions, Affirm offers a wide range of financial products and services. Investors may want to compare the performance of these two stocks to determine which may be a better investment opportunity in the rapidly evolving fintech sector.

Bread Financial or Affirm?

When comparing Bread Financial and Affirm, 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 Bread Financial and Affirm.

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. Bread Financial has a dividend yield of 1.76%, while Affirm has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bread Financial reports a 5-year dividend growth of -18.10% year and a payout ratio of 13.46%. On the other hand, Affirm 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 Bread Financial P/E ratio at 9.49 and Affirm's P/E ratio at -40.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bread Financial P/B ratio is 0.95 while Affirm's P/B ratio is 6.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bread Financial has seen a 5-year revenue growth of -0.16%, while Affirm's is 4.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bread Financial's ROE at 10.20% and Affirm's ROE at -16.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $59.34 for Bread Financial and $47.98 for Affirm. Over the past year, Bread Financial's prices ranged from $26.27 to $63.01, with a yearly change of 139.86%. Affirm's prices fluctuated between $21.88 and $57.76, with a yearly change of 163.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.