Paypoint (OTCMKTS:PYPTF) versus Affirm (NASDAQ:AFRM) Financial Survey

Affirm (NASDAQ:AFRM) and Paypoint (OTCMKTS:PYPTF) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares Affirm and Paypoint’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%
Paypoint	N/A	N/A	N/A

Insider and Institutional Ownership

69.3% of Affirm shares are owned by institutional investors. 11.0% of Affirm shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Affirm has a beta of 3.71, meaning that its share price is 271% more volatile than the S&P 500. Comparatively, Paypoint has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Affirm	0	7	22	2	2.84
Paypoint	0	0	0	0	0.00

Affirm currently has a consensus price target of $93.15, suggesting a potential upside of 18.89%. Given Affirm’s stronger consensus rating and higher possible upside, research analysts plainly believe Affirm is more favorable than Paypoint.

Earnings and Valuation

This table compares Affirm and Paypoint”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Affirm	$3.24 billion	8.09	$52.19 million	$1.10	71.23
Paypoint	$451.69 million	1.20	$52.72 million	N/A	N/A

Paypoint has lower revenue, but higher earnings than Affirm.

Summary

Affirm beats Paypoint on 12 of the 13 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 Paypoint

PayPoint plc engages in the provision of payments and banking, shopping, and e-commerce services and products in the United Kingdom. The company operates through two segments: PayPoint and Love2shop. The PayPoint segment provides card payment services to retailers, including leased payment devices; EPoS; ATM cash machines; SIM cards sales; receipt advertising; bill payment services and cash top-ups to individual consumers; parcel delivery and collection services; retailer service fees solutions; and digital payment services, as well as cash through to digital services. The segment offers its products under PayPoint One, eMoney, MultiPay, CashOut, and Direct Debits platforms. The Love2shop segment is involved in the provision of shopping vouchers, cards, and e-codes which customers may redeem with participating retailers; and Christmas savings club, to which customers make regular payments throughout the year to help spread the cost of Christmas, before converting to a voucher. It serves consumers, SMEs, and convenience retailers in the commercial, not-for-profit, and public sectors. The company was founded in 1996 and is headquartered in Welwyn Garden City, the United Kingdom.