Financial Comparison: DeFi Development (NASDAQ:DFDV) and Affirm (NASDAQ:AFRM)

Affirm (NASDAQ:AFRM) and DeFi Development (NASDAQ:DFDV) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Affirm and DeFi Development, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Affirm	0	7	22	2	2.84
DeFi Development	0	1	1	0	2.50

Affirm presently has a consensus target price of $93.15, indicating a potential upside of 24.11%. DeFi Development has a consensus target price of $4.70, indicating a potential upside of 24.67%. Given DeFi Development’s higher probable upside, analysts plainly believe DeFi Development is more favorable than Affirm.

Institutional and Insider Ownership

69.3% of Affirm shares are owned by institutional investors. Comparatively, 0.5% of DeFi Development shares are owned by institutional investors. 11.0% of Affirm shares are owned by insiders. Comparatively, 23.6% of DeFi Development shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Affirm and DeFi Development”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Affirm	$3.24 billion	7.75	$52.19 million	$1.10	68.23
DeFi Development	$15.09 million	7.74	-$73.79 million	($9.98)	-0.38

Affirm has higher revenue and earnings than DeFi Development. DeFi Development 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, indicating that its stock price is 271% more volatile than the S&P 500. Comparatively, DeFi Development has a beta of -3.94, indicating that its stock price is 494% less volatile than the S&P 500.

Profitability

This table compares Affirm and DeFi Development’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%
DeFi Development	-1,319.45%	17.97%	5.02%

Summary

Affirm beats DeFi Development 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 DeFi Development

We are a B2B fintech marketplace connecting commercial property borrowers and lenders with a human touch. We seek to revolutionize the commercial real estate lending market by making it hyper-efficient, transparent, and accessible to all rather than the few. Through our online platform, we provide technology that connects commercial mortgage borrowers looking for capital to refinance, build, or purchase commercial property, including, but not limited to, apartment buildings, to commercial property lenders. Borrowers include, but are not limited to, owners, operators, and developers of commercial real estate including multifamily properties and most recently, a growing segment of small business owners, which we believe represents a significant growth opportunity. Lenders include small banks, credit unions, REITs, Fannie Mae® and Freddie Mac® multifamily lenders, FHA® multifamily lenders, debt funds, CMBS lenders, SBA lenders, and more. We have developed a flexible, two-sided, B2B marketplace that connects commercial borrowers and lenders, with a human touch. Commercial property owners, operators, and developers can quickly create an account on our platform, set up their own profile, and submit and manage loan requests on their dashboard in a digital experience. Our algorithms automatically match borrowers to their best loan options or to our internal capital markets advisors that guide the borrower throughout the process and connect them with a potentially suitable loan product and lender. Originators that work at commercial mortgage lenders can access their accounts on our platform to view, sort, and communicate with their matched borrowers in real-time, tracking their loan progress through our portal. Capital markets advisors that work internally have their own interface that gives them access to targeted loan opportunities empowering them to better assist borrowers in managing their choices, leading to the best possible outcomes for both lenders and borrowers while building trust, all of which is intended to enhance our brand. We believe that as we scale, we can use the same technology to provide similar services across the commercial property and small business value chain. Our mission is to remove frictions from traditional commercial property financing, making it easier and more cost-effective for all parties in the transaction. We intend to disintermediate commercial real estate financing, flattening the playing field for commercial property owners and developers, and lenders of all sizes, democratizing an otherwise fractured and elitist market. We were originally formed as Janover Ventures LLC, a Florida limited liability company, on November 28, 2018, and converted to Janover Inc., a Delaware corporation, on March 9, 2021. We are headquartered at 6401 Congress Avenue, Suite 250, Boca Raton, Florida.