SOFI vs AFRM

For growth investors, Affirm Holdings, Inc.

(AFRM) is the stronger pick with 38. 8% revenue growth year-over-year, versus 28. 8% for SoFi Technologies, Inc. (SOFI). SoFi Technologies, Inc. (SOFI) offers the better valuation at 41. 1x trailing P/E (26. 5x forward), making it the more compelling value choice. Analysts rate Affirm Holdings, Inc. (AFRM) a "Buy" — based on 33 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, SoFi Technologies, Inc.

(SOFI) is the cheapest at 41. 1x versus Affirm Holdings, Inc. at 445. 4x. On forward P/E, SoFi Technologies, Inc. is actually cheaper at 26. 5x.

Over the past 5 years, Affirm Holdings, Inc.

(AFRM) delivered a total return of +16. 0%, compared to +3. 1% for SoFi Technologies, Inc. (SOFI). Over 10 years, the gap is even starker: SOFI returned +52. 9% versus AFRM's -31. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), SoFi Technologies, Inc.

(SOFI) is the lower-risk stock at 2. 54β versus Affirm Holdings, Inc. 's 2. 72β — meaning AFRM is approximately 7% more volatile than SOFI relative to the S&P 500. On balance sheet safety, SoFi Technologies, Inc. (SOFI) carries a lower debt/equity ratio of 17% versus 3% for Affirm Holdings, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Affirm Holdings, Inc.

(AFRM) is pulling ahead at 38. 8% versus 28. 8% for SoFi Technologies, Inc. (SOFI). On earnings-per-share growth, the picture is similar: Affirm Holdings, Inc. grew EPS 109. 0% year-over-year, compared to 0. 0% for SoFi Technologies, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

SoFi Technologies, Inc.

(SOFI) is the more profitable company, earning 10. 1% net margin versus 1. 6% for Affirm Holdings, Inc. — meaning it keeps 10. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SOFI leads at 11. 0% versus -2. 7% for AFRM. At the gross margin level — before operating expenses — SOFI leads at 75. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, SoFi Technologies, Inc.

(SOFI) trades at 26. 5x forward P/E versus 62. 0x for Affirm Holdings, Inc. — 35. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SOFI: 30. 4% to $20. 89.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, SoFi Technologies, Inc.

(SOFI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Affirm Holdings, Inc. (AFRM) carries a higher beta of 2. 72 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (SOFI: +52. 9%, AFRM: -31. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (SOFI (Financial Services) and AFRM (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.