Analyzing Affirm (NASDAQ:AFRM) and Repay (NASDAQ:RPAY)

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

Volatility & Risk

Affirm has a beta of 3.82, suggesting that its stock price is 282% more volatile than the S&P 500. Comparatively, Repay has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Affirm and Repay, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Affirm	0	8	24	0	2.75
Repay	1	3	3	0	2.29

Affirm presently has a consensus target price of $97.69, suggesting a potential upside of 32.90%. Repay has a consensus target price of $5.25, suggesting a potential upside of 26.20%. Given Affirm’s stronger consensus rating and higher probable upside, equities analysts clearly believe Affirm is more favorable than Repay.

Institutional & Insider Ownership

69.3% of Affirm shares are held by institutional investors. Comparatively, 82.7% of Repay shares are held by institutional investors. 11.0% of Affirm shares are held by company insiders. Comparatively, 12.0% of Repay shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Affirm	$4.26 billion	5.82	$1.93 billion	$5.52	13.32
Repay	$309.26 million	1.28	-$256.72 million	($2.04)	-2.04

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.

Profitability

This table compares Affirm and Repay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Affirm	45.29%	47.91%	14.46%
Repay	-49.57%	11.03%	4.28%

Summary

Affirm beats Repay on 12 of the 14 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 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.