Affirm Holdings Inc (AFRM)vsCredit Acceptance Corporation (CACC)
AFRM
Affirm Holdings Inc
$73.25
+4.48%
FINANCIAL SERVICES · Cap: $25.48B
CACC
Credit Acceptance Corporation
$555.67
-0.19%
FINANCIAL SERVICES · Cap: $6.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Affirm Holdings Inc generates 211% more annual revenue ($3.97B vs $1.28B). CACC leads profitability with a 35.5% profit margin vs 9.6%. AFRM appears more attractively valued with a PEG of 0.76. CACC earns a higher WallStSmart Score of 75/100 (B+).
AFRM
Buy63
out of 100
Grade: C+
CACC
Strong Buy75
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 32.6% year-over-year
Earnings expanding 3529.0% YoY
Growing faster than its price suggests
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 52.7%
Every $100 of equity generates 30 in profit
Attractively priced relative to earnings
Earnings expanding 43.2% YoY
Areas to Watch
Premium valuation, high expectations priced in
Distress zone — elevated risk
Elevated debt levels
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : AFRM
The strongest argument for AFRM centers on Revenue Growth, EPS Growth, PEG Ratio. Revenue growth of 32.6% demonstrates continued momentum. PEG of 0.76 suggests the stock is reasonably priced for its growth.
Bull Case : CACC
The strongest argument for CACC centers on Profit Margin, Operating Margin, Return on Equity. Profitability is solid with margins at 35.5% and operating margin at 52.7%. Revenue growth of 12.7% demonstrates continued momentum.
Bear Case : AFRM
The primary concerns for AFRM are P/E Ratio, Altman Z-Score, Debt/Equity. A P/E of 69.2x leaves little room for execution misses. Debt-to-equity of 2.36 is elevated, increasing financial risk.
Bear Case : CACC
The primary concerns for CACC are Altman Z-Score, Debt/Equity. Debt-to-equity of 4.23 is elevated, increasing financial risk.
Key Dynamics to Monitor
AFRM profiles as a hypergrowth stock while CACC is a mature play — different risk/reward profiles.
AFRM carries more volatility with a beta of 3.67 — expect wider price swings.
AFRM is growing revenue faster at 32.6% — sustainability is the question.
CACC generates stronger free cash flow (346M), providing more financial flexibility.
Bottom Line
CACC scores higher overall (75/100 vs 63/100), backed by strong 35.5% margins and 12.7% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Affirm Holdings Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Affirm Holdings, Inc. operates a platform for digital and mobile commerce in the United States and Canada. The company is headquartered in San Francisco, California.
Visit Website →Credit Acceptance Corporation
FINANCIAL SERVICES · CREDIT SERVICES · USA
Credit Acceptance Corporation offers financing programs and related products and services to independent and franchised automobile dealerships in the United States. The company is headquartered in Southfield, Michigan.
Visit Website →Compare with Other CREDIT SERVICES Stocks
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