Comprehensive Stock Comparison
Compare Affirm Holdings, Inc. (AFRM) vs Toast, Inc. (TOST) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AFRM | 38.8% revenue growth vs TOST's 24.1% |
| Value | TOST | Lower P/E (22.4x vs 43.6x) |
| Quality / Margins | AFRM | 9.7% net margin vs TOST's 5.6% |
| Stability / Safety | TOST | Beta 1.51 vs AFRM's 2.41, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | AFRM | -26.8% vs TOST's -29.2% |
| Efficiency (ROA) | TOST | 10.9% ROA vs AFRM's 2.2%, ROIC 30.8% vs -0.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Affirm operates a buy-now-pay-later platform that enables consumers to split purchases into installment payments at online and physical retailers. It generates revenue primarily from merchant fees — typically 3-6% of transaction value — and interest income from longer-term loans to consumers. Its key advantage is a transparent, fee-free model that builds consumer trust and a growing merchant network that creates a two-sided marketplace effect.
Toast is a cloud-based restaurant management platform that provides point-of-sale systems, payment processing, and operational software to eateries. It generates revenue primarily through subscription fees for its software platform (about 25% of revenue) and payment processing fees from restaurant transactions (roughly 70% of revenue). The company's competitive advantage lies in its integrated ecosystem—combining hardware, software, and payments—which creates high switching costs for restaurants once they adopt the full Toast system.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TOST leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). AFRM leads in 2 (Financial Metrics, Total Returns).
Financial Metrics (TTM)
TOST is the larger business by revenue, generating $6.2B annually — 2.1x AFRM's $2.9B. Profitability is closely matched — net margins range from 9.7% (AFRM) to 5.6% (TOST). On growth, TOST holds the edge at +22.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | AFRMAffirm Holdings, … | TOSTToast, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $2.9B | $6.2B |
| EBITDAEarnings before interest/tax | $420M | $361M |
| Net IncomeAfter-tax profit | $282M | $342M |
| Free Cash FlowCash after capex | $619M | $608M |
| Gross MarginGross profit ÷ Revenue | +59.5% | +25.8% |
| Operating MarginEBIT ÷ Revenue | +7.9% | +4.8% |
| Net MarginNet income ÷ Revenue | +9.7% | +5.6% |
| FCF MarginFCF ÷ Revenue | +21.2% | +9.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | -62.1% | +22.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +60.9% | +190.9% |
Valuation Metrics
At 48.8x trailing earnings, TOST trades at a 84% valuation discount to AFRM's 313.2x P/E. On an enterprise value basis, TOST's 34.9x EV/EBITDA is more attractive than AFRM's 158.0x.
| Metric | AFRMAffirm Holdings, … | TOSTToast, Inc. |
|---|---|---|
| Market CapShares × price | $15.3B | $14.3B |
| Enterprise ValueMkt cap + debt − cash | $21.8B | $13.0B |
| Trailing P/EPrice ÷ TTM EPS | 313.20x | 48.77x |
| Forward P/EPrice ÷ next-FY EPS est. | 43.63x | 22.38x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 158.00x | 34.87x |
| Price / SalesMarket cap ÷ Revenue | 4.74x | 2.32x |
| Price / BookPrice ÷ Book value/share | 5.22x | 7.80x |
| Price / FCFMarket cap ÷ FCF | 25.38x | 23.49x |
Profitability & Efficiency
TOST delivers a 16.1% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $8 for AFRM. TOST carries lower financial leverage with a 0.02x debt-to-equity ratio, signaling a more conservative balance sheet compared to AFRM's 2.56x. On the Piotroski fundamental quality scale (0–9), TOST scores 7/9 vs AFRM's 6/9, reflecting strong financial health.
| Metric | AFRMAffirm Holdings, … | TOSTToast, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +8.0% | +16.1% |
| ROA (TTM)Return on assets | +2.2% | +10.9% |
| ROICReturn on invested capital | -0.7% | +30.8% |
| ROCEReturn on capital employed | -0.9% | +15.9% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 2.56x | 0.02x |
| Net DebtTotal debt minus cash | $6.5B | -$1.3B |
| Cash & Equiv.Liquid assets | $1.4B | $1.4B |
| Total DebtShort + long-term debt | $7.9B | $40M |
| Interest CoverageEBIT ÷ Interest expense | 1.49x | — |
Total Returns (with DRIP)
A $10,000 investment in AFRM five years ago would be worth $5,138 today (with dividends reinvested), compared to $4,369 for TOST. Over the past 12 months, AFRM leads with a -26.8% total return vs TOST's -29.2%. The 3-year compound annual growth rate (CAGR) favors AFRM at 51.1% vs TOST's 13.0% — a key indicator of consistent wealth creation.
| Metric | AFRMAffirm Holdings, … | TOSTToast, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -36.5% | -19.7% |
| 1-Year ReturnPast 12 months | -26.8% | -29.2% |
| 3-Year ReturnCumulative with dividends | +244.9% | +44.3% |
| 5-Year ReturnCumulative with dividends | -48.6% | -56.3% |
| 10-Year ReturnCumulative with dividends | -51.7% | -56.3% |
| CAGR (3Y)Annualised 3-year return | +51.1% | +13.0% |
Risk & Volatility
TOST is the less volatile stock with a 1.51 beta — it tends to amplify market swings less than AFRM's 2.41 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TOST currently trades 55.0% from its 52-week high vs AFRM's 47.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | AFRMAffirm Holdings, … | TOSTToast, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.41x | 1.51x |
| 52-Week HighHighest price in past year | $100.00 | $49.66 |
| 52-Week LowLowest price in past year | $30.90 | $24.35 |
| % of 52W HighCurrent price vs 52-week peak | +47.0% | +55.0% |
| RSI (14)Momentum oscillator 0–100 | 34.4 | 44.1 |
| Avg Volume (50D)Average daily shares traded | 5.3M | 9.2M |
Analyst Outlook
Wall Street rates AFRM as "Buy" and TOST as "Buy". Consensus price targets imply 79.7% upside for AFRM (target: $84) vs 45.8% for TOST (target: $40).
| Metric | AFRMAffirm Holdings, … | TOSTToast, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $84.40 | $39.82 |
| # AnalystsCovering analysts | 32 | 29 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +1.6% | +0.7% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Oct 21 | Feb 26 | Change |
|---|---|---|---|
| Affirm Holdings, In… (AFRM) | 100 | 52.6 | -47.4% |
| Toast, Inc. (TOST) | 85.67 | 50.42 | -41.1% |
Affirm Holdings, In… (AFRM) returned -49% over 5 years vs Toast, Inc. (TOST)'s -56%.
Chart 2Revenue Growth — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| Affirm Holdings, In… (AFRM) | $264M | $3.2B | +1119.7% |
| Toast, Inc. (TOST) | $665M | $6.2B | +825.3% |
Affirm Holdings, Inc.'s revenue grew from $264M (2019) to $3.2B (2025) — a 51.7% CAGR. Toast, Inc.'s revenue grew from $665M (2019) to $6.2B (2025) — a 44.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| Affirm Holdings, In… (AFRM) | -45.6% | 1.6% | +103.6% |
| Toast, Inc. (TOST) | -31.4% | 5.6% | +117.7% |
Affirm Holdings, Inc.'s net margin went from -46% (2019) to 2% (2025). Toast, Inc.'s net margin went from -31% (2019) to 6% (2025).
Chart 4EPS Growth — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| Affirm Holdings, In… (AFRM) | -0.47 | 0.15 | +131.9% |
| Toast, Inc. (TOST) | -0.45 | 0.56 | +224.4% |
Affirm Holdings, Inc.'s EPS grew from $-0.47 (2019) to $0.15 (2025). Toast, Inc.'s EPS grew from $-0.45 (2019) to $0.56 (2025).
Chart 5Free Cash Flow — 5 Years
Affirm Holdings, Inc. generated $602M FCF in 2025 (+382% vs 2021). Toast, Inc. generated $608M FCF in 2025 (+3676% vs 2021).
AFRM vs TOST: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is AFRM or TOST a better buy right now?
Toast, Inc. (TOST) offers the better valuation at 48.8x trailing P/E (22.4x forward), making it the more compelling value choice. Analysts rate Affirm Holdings, Inc. (AFRM) a "Buy" — based on 32 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.
02Which has the better valuation — AFRM or TOST?
On trailing P/E, Toast, Inc. (TOST) is the cheapest at 48.8x versus Affirm Holdings, Inc. at 313.2x. On forward P/E, Toast, Inc. is actually cheaper at 22.4x.
03Which is the better long-term investment — AFRM or TOST?
Over the past 5 years, Affirm Holdings, Inc. (AFRM) delivered a total return of -48.6%, compared to -56.3% for Toast, Inc. (TOST). A $10,000 investment in AFRM five years ago would be worth approximately $5K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AFRM returned -51.7% versus TOST's -56.3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — AFRM or TOST?
By beta (market sensitivity over 5 years), Toast, Inc. (TOST) is the lower-risk stock at 1.51β versus Affirm Holdings, Inc.'s 2.41β — meaning AFRM is approximately 60% more volatile than TOST relative to the S&P 500. On balance sheet safety, Toast, Inc. (TOST) carries a lower debt/equity ratio of 2% versus 3% for Affirm Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — AFRM or TOST?
Toast, Inc. (TOST) is the more profitable company, earning 5.6% net margin versus 1.6% for Affirm Holdings, Inc. — meaning it keeps 5.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TOST leads at 5.0% versus -2.7% for AFRM. At the gross margin level — before operating expenses — AFRM leads at 67.5%, 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.
06Is AFRM or TOST more undervalued right now?
On forward earnings alone, Toast, Inc. (TOST) trades at 22.4x forward P/E versus 43.6x for Affirm Holdings, Inc. — 21.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AFRM: 79.7% to $84.40.
07Which pays a better dividend — AFRM or TOST?
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.
08Is AFRM or TOST better for a retirement portfolio?
For long-horizon retirement investors, Toast, Inc. (TOST) 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 2.41 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TOST: -56.3%, AFRM: -51.7%), 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.
09What are the main differences between AFRM and TOST?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. 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.
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