Affirm (NASDAQ:AFRM – Get Free Report) and Tron (NASDAQ:TRON – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Profitability
This table compares Affirm and Tron’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Affirm | 9.63% | 11.17% | 3.14% |
| Tron | 112.96% | -7.27% | -7.18% |
Earnings and Valuation
This table compares Affirm and Tron”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Affirm | $3.24 billion | 7.90 | $52.19 million | $1.10 | 69.62 |
| Tron | $4.74 million | 144.12 | -$16.81 million | ($0.11) | -13.09 |
Affirm has higher revenue and earnings than Tron. Tron is trading at a lower price-to-earnings ratio than Affirm, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Affirm has a beta of 3.71, suggesting that its share price is 271% more volatile than the S&P 500. Comparatively, Tron has a beta of 8.59, suggesting that its share price is 759% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Affirm and Tron, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Affirm | 0 | 7 | 21 | 3 | 2.87 |
| Tron | 1 | 0 | 0 | 0 | 1.00 |
Affirm currently has a consensus target price of $92.74, suggesting a potential upside of 21.10%. Given Affirm’s stronger consensus rating and higher possible upside, equities analysts plainly believe Affirm is more favorable than Tron.
Insider and Institutional Ownership
69.3% of Affirm shares are owned by institutional investors. Comparatively, 28.0% of Tron shares are owned by institutional investors. 11.0% of Affirm shares are owned by insiders. Comparatively, 86.2% of Tron shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Affirm beats Tron on 11 of the 15 factors compared between the two stocks.
About Affirm
Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time with terms ranging up to 60 months. The company has active merchants covering small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and companies with an omni-channel presence. Its merchants represent a range of industries, including sporting goods and outdoors, furniture and homewares, travel and ticketing, apparel, accessories, consumer electronics, and jewelry. Affirm Holdings, Inc. was founded in 2012 and is headquartered in San Francisco, California.
About Tron
SRM Entertainment, Inc. designs, manufactures, and sells toys and souvenirs to theme parks. It sells its products through amusement parks, entertainment venues, and theme hotels in the United States, China, Japan, and internationally. The company was incorporated in 2022 and is based in Jupiter, Florida.
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