Repay (NASDAQ:RPAY – Get Free Report) and Affirm (NASDAQ:AFRM – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Volatility & Risk
Repay has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500. Comparatively, Affirm has a beta of 3.82, meaning that its stock price is 282% more volatile than the S&P 500.
Insider and Institutional Ownership
82.7% of Repay shares are owned by institutional investors. Comparatively, 69.3% of Affirm shares are owned by institutional investors. 12.0% of Repay shares are owned by insiders. Comparatively, 11.0% of Affirm shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and price targets for Repay and Affirm, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Repay | 1 | 3 | 3 | 0 | 2.29 |
| Affirm | 0 | 8 | 24 | 0 | 2.75 |
Repay presently has a consensus target price of $5.25, indicating a potential upside of 26.20%. Affirm has a consensus target price of $97.69, indicating a potential upside of 32.90%. Given Affirm’s stronger consensus rating and higher probable upside, analysts clearly believe Affirm is more favorable than Repay.
Profitability
This table compares Repay and Affirm’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Repay | -49.57% | 11.03% | 4.28% |
| Affirm | 45.29% | 47.91% | 14.46% |
Valuation and Earnings
This table compares Repay and Affirm”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Repay | $309.26 million | 1.28 | -$256.72 million | ($2.04) | -2.04 |
| Affirm | $4.26 billion | 5.82 | $1.93 billion | $5.52 | 13.32 |
Affirm has higher revenue and earnings than Repay. Repay is trading at a lower price-to-earnings ratio than Affirm, indicating that it is currently the more affordable of the two stocks.
Summary
Affirm beats Repay on 12 of the 14 factors compared between the two stocks.
About Repay
Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets in the United States. It operates through two segments: Consumer Payments and Business Payments. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods. It also offers a range of solutions relating to electronic payment methods, including credit and debit card processing, automated clearing house (ACH) processing, e-cash, and digital wallet services; virtual credit card processing, enhanced ACH processing, instant funding, clearing and settlement, and communication solutions; and proprietary payment channels that include Web-based, virtual terminal, online client portal, mobile application, text-to-pay, interactive voice response, and point of sale services. It serves customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.
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.
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