Katapult vs Affirm Which Performs Better?

Katapult and Affirm are two financial technology companies that offer alternative payment solutions for consumers. Katapult specializes in lease-purchase options for consumers with low credit scores, while Affirm provides installment loans for online purchases. Both companies have seen significant growth in recent years as more consumers seek flexible payment options. Investors may be interested in comparing the performance of these two stocks to determine which company has the potential for greater long-term returns.

Katapult or Affirm?

When comparing Katapult 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 Katapult 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. Katapult has a dividend yield of -%, while Affirm has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Katapult reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Katapult P/E ratio at -0.82 and Affirm's P/E ratio at -40.05. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Katapult P/B ratio is -0.71 while Affirm's P/B ratio is 6.30.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Katapult has seen a 5-year revenue growth of -0.60%, while Affirm's is 4.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Katapult's ROE at 108.59% and Affirm's ROE at -16.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.58 for Katapult and $51.70 for Affirm. Over the past year, Katapult's prices ranged from $6.44 to $23.54, with a yearly change of 265.53%. Affirm's prices fluctuated between $22.25 and $59.27, with a yearly change of 166.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.