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AFRM vs SOFI
Which Stock Would AI Choose? Affirm Holdings (AFRM) vs. SoFi Technologies (SOFI) Stock Comparison
Key Takeaways
- AFRM has demonstrated stronger momentum in recent weeks, surging amid promotional campaigns and upcoming earnings, while SOFI has experienced downward pressure ahead of its quarterly report.
- SOFI shows superior profitability with a 13.4% profit margin compared to AFRM's 7.6%, alongside a lower price-to-earnings (P/E) ratio of 47 versus 78.
- Both companies report similar trailing twelve months (TTM) revenue around $3.6-3.7 billion, reflecting robust growth in the fintech lending space.
- AFRM carries higher risk with a beta of 3.63 and elevated debt-to-equity ratio (259%), contrasting SOFI's more stable beta of 2.25 and lower leverage (18%).
- Market caps are closely matched at approximately $21-23 billion, with analyst price targets suggesting upside for both: $79 for AFRM and $23 for SOFI.
Introduction
In the competitive fintech sector, AFRM and SOFI stand out as innovative players offering consumer lending solutions. Affirm Holdings specializes in buy-now-pay-later (BNPL) services, while SoFi Technologies provides a broader digital banking platform encompassing loans, investing, and deposits. This stock comparison is particularly relevant for growth-oriented traders and investors navigating recent market volatility, where relative performance, profitability, and upcoming catalysts like earnings reports can influence positioning. By examining business models, recent trends, and key metrics, readers gain insights into their market positioning and potential trade-offs.
AFRM Overview and Recent Performance
Affirm Holdings (AFRM) operates a BNPL platform enabling consumers to split purchases into interest-free or low-interest installments, partnering with merchants like Amazon and Walmart. Trading around $63 per share with a market cap of $21 billion, the stock has exhibited high volatility, reflected in its beta of 3.63. Recent market activity shows AFRM outperforming broader indices, driven by promotional initiatives such as the "Big Nothing" 0% APR offer relaunching soon and positive analyst notes on partnerships. Year-to-date gains stand at about 15%, with TTM revenue of $3.72 billion and EPS of $0.81. Sentiment has shifted positively amid expectations for the May 7 earnings, though high P/E ratio of 78 signals growth pricing amid elevated debt levels.
SOFI Overview and Recent Performance
SoFi Technologies (SOFI) delivers a digital financial ecosystem including personal loans, student lending, banking, and investment products, targeting younger demographics. Shares trade near $19 with a $23 billion market cap and beta of 2.25, indicating moderate volatility. In recent weeks, SOFI has faced selling pressure, down amid broader fintech rotation, despite YTD returns around 30% earlier in the year. TTM revenue reaches $3.58 billion, with stronger net income of $481 million and a 13.4% profit margin. Key developments include a new digital home equity line of credit (HELOC) product launch, bolstering lending access. Trading sentiment reflects caution ahead of today's Q1 earnings, expected to show revenue growth of 36% year-over-year.
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Head-to-Head Comparison
AFRM focuses on BNPL, capitalizing on e-commerce growth but exposed to consumer credit risks and merchant dependency, while SOFI's diversified model spans lending, deposits (boosting net interest income, or NII), and wealth management for stable fee generation. Growth drivers differ: AFRM benefits from GMV expansion and partnerships, versus SOFI's member additions and product cross-sell. Recent momentum favors AFRM with superior short-term gains amid volatility, contrasting SOFI's consolidation. Risk profiles highlight SOFI's edge in lower leverage and ROE (5.7% vs. AFRM's 8.9%), though both face interest rate sensitivity. Sector exposure ties to consumer finance, but sentiment leans toward SOFI for profitability and AFRM for upside catalysts.
Tickeron AI Verdict
Tickeron's AI currently leans toward AFRM based on stronger recent trend consistency, momentum in recent market activity, and positioning ahead of earnings catalysts. While SOFI offers stability and margins, AFRM's relative outperformance suggests higher probability of near-term gains in a risk-on environment.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is AFRM is a StrongBuy and SOFI is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
AFRM’s FA Score shows that 0 FA rating(s) are green whileSOFI’s FA Score has 1 green FA rating(s).
- AFRM’s FA Score: 0 green, 5 red.
- SOFI’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
AFRM’s TA Score shows that 4 TA indicator(s) are bullish while SOFI’s TA Score has 4 bullish TA indicator(s).
- AFRM’s TA Score: 4 bullish, 4 bearish.
- SOFI’s TA Score: 4 bullish, 6 bearish.
Price Growth
AFRM (@Savings Banks) experienced а +0.42% price change this week, while SOFI (@Savings Banks) price change was -0.18% for the same time period.
The average weekly price growth across all stocks in the @Savings Banks industry was -0.26%. For the same industry, the average monthly price growth was +3.33%, and the average quarterly price growth was -4.10%.
Reported Earning Dates
AFRM is expected to report earnings on Aug 20, 2026.
SOFI is expected to report earnings on Aug 04, 2026.
Industries' Descriptions
@Savings Banks (-0.26% weekly)A savings bank primary function is to take deposits and paying interest on those deposits. Originating in Europe during the 18th century, these banks were generally introduced to incentivize people of all stripes to save money and park them with banks. By the 1990s, the internet ushered in online savings banks that allowed savers to deposit/transact with banks digitally, without requiring to visit a branch office. Savings banks have potentially encouraged lower-income population to save and have access to a financial institution to earn interest on their money. New York Community Bancorp, Inc, Webster Financial Corporation, Washington Federal, Inc. are examples of savings banks.
| AFRM | SOFI | AFRM / SOFI | |
| Capitalization | 24.2B | 21.9B | 111% |
| EBITDA | 1.12B | N/A | - |
| Gain YTD | -2.996 | -34.683 | 9% |
| P/E Ratio | 65.64 | 38.00 | 173% |
| Revenue | 3.97B | 3.94B | 101% |
| Total Cash | 2.48B | N/A | - |
| Total Debt | 9.09B | 1.92B | 475% |
| AFRM | SOFI | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 90% | 2 days ago 58% |
| Stochastic ODDS (%) | 2 days ago 79% | 2 days ago 85% |
| Momentum ODDS (%) | 2 days ago 90% | 2 days ago 81% |
| MACD ODDS (%) | 2 days ago 79% | 2 days ago 81% |
| TrendWeek ODDS (%) | 2 days ago 86% | 2 days ago 83% |
| TrendMonth ODDS (%) | 2 days ago 87% | 2 days ago 84% |
| Advances ODDS (%) | 8 days ago 83% | 8 days ago 83% |
| Declines ODDS (%) | 14 days ago 86% | 14 days ago 82% |
| BollingerBands ODDS (%) | 2 days ago 81% | 2 days ago 80% |
| Aroon ODDS (%) | 2 days ago 86% | 2 days ago 86% |
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AFRM and
Correlation & Price change
A.I.dvisor indicates that over the last year, AFRM has been closely correlated with COIN. These tickers have moved in lockstep 81% of the time. This A.I.-generated data suggests there is a high statistical probability that if AFRM jumps, then COIN could also see price increases.
| Ticker / NAME | Correlation To AFRM | 1D Price Change % | ||
|---|---|---|---|---|
| AFRM | 100% | -2.33% | ||
| COIN - AFRM | 81% Closely correlated | +0.97% | ||
| CLSK - AFRM | 71% Closely correlated | +1.31% | ||
| RIOT - AFRM | 70% Closely correlated | +1.89% | ||
| UPST - AFRM | 62% Loosely correlated | -3.42% | ||
| NET - AFRM | 62% Loosely correlated | -2.54% | ||
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SOFI and
Correlation & Price change
A.I.dvisor indicates that over the last year, SOFI has been loosely correlated with UPST. These tickers have moved in lockstep 60% of the time. This A.I.-generated data suggests there is some statistical probability that if SOFI jumps, then UPST could also see price increases.
| Ticker / NAME | Correlation To SOFI | 1D Price Change % | ||
|---|---|---|---|---|
| SOFI | 100% | -4.52% | ||
| UPST - SOFI | 60% Loosely correlated | -3.42% | ||
| URI - SOFI | 60% Loosely correlated | +1.47% | ||
| LC - SOFI | 57% Loosely correlated | N/A | ||
| AFRM - SOFI | 57% Loosely correlated | -2.33% | ||
| AER - SOFI | 55% Loosely correlated | +1.23% | ||
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