Comprehensive Stock Comparison
Compare DLocal Limited (DLO) vs Affirm Holdings, Inc. (AFRM) 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 DLO's 14.7% |
| Value | DLO | Lower P/E (14.0x vs 43.6x) |
| Quality / Margins | DLO | 17.8% net margin vs AFRM's 9.7% |
| Stability / Safety | DLO | Beta 1.29 vs AFRM's 2.41, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | DLO | +33.5% vs AFRM's -26.8% |
| Efficiency (ROA) | DLO | 12.1% ROA vs AFRM's 2.2%, ROIC 59.4% 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
DLocal operates a cross-border payments platform that enables global merchants to accept payments and make payouts in emerging markets. It generates revenue primarily from transaction fees — taking a percentage of each payment processed through its platform — with additional income from foreign exchange spreads and other financial services. The company's key advantage is its deep local infrastructure in high-growth emerging markets, allowing it to navigate complex regulatory environments and payment methods that global competitors struggle to penetrate.
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.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
DLO leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). AFRM leads in 1 (Total Returns).
Financial Metrics (TTM)
AFRM is the larger business by revenue, generating $2.9B annually — 3.0x DLO's $960M. DLO is the more profitable business, keeping 17.8% of every revenue dollar as net income compared to AFRM's 9.7%. On growth, DLO holds the edge at +52.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DLODLocal Limited | AFRMAffirm Holdings, … |
|---|---|---|
| RevenueTrailing 12 months | $960M | $2.9B |
| EBITDAEarnings before interest/tax | $223M | $420M |
| Net IncomeAfter-tax profit | $171M | $282M |
| Free Cash FlowCash after capex | $152M | $619M |
| Gross MarginGross profit ÷ Revenue | +38.6% | +59.5% |
| Operating MarginEBIT ÷ Revenue | +20.8% | +7.9% |
| Net MarginNet income ÷ Revenue | +17.8% | +9.7% |
| FCF MarginFCF ÷ Revenue | +15.8% | +21.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +52.1% | -62.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +88.1% | +60.9% |
Valuation Metrics
At 31.4x trailing earnings, DLO trades at a 90% valuation discount to AFRM's 313.2x P/E. On an enterprise value basis, DLO's 10.5x EV/EBITDA is more attractive than AFRM's 158.0x.
| Metric | DLODLocal Limited | AFRMAffirm Holdings, … |
|---|---|---|
| Market CapShares × price | $2.0B | $15.3B |
| Enterprise ValueMkt cap + debt − cash | $1.7B | $21.8B |
| Trailing P/EPrice ÷ TTM EPS | 31.38x | 313.20x |
| Forward P/EPrice ÷ next-FY EPS est. | 13.96x | 43.63x |
| PEG RatioP/E ÷ EPS growth rate | 0.64x | — |
| EV / EBITDAEnterprise value multiple | 10.50x | 158.00x |
| Price / SalesMarket cap ÷ Revenue | 2.72x | 4.74x |
| Price / BookPrice ÷ Book value/share | 7.64x | 5.22x |
| Price / FCFMarket cap ÷ FCF | — | 25.38x |
Profitability & Efficiency
DLO delivers a 33.9% return on equity — every $100 of shareholder capital generates $34 in annual profit, vs $8 for AFRM. DLO carries lower financial leverage with a 0.11x debt-to-equity ratio, signaling a more conservative balance sheet compared to AFRM's 2.56x. On the Piotroski fundamental quality scale (0–9), AFRM scores 6/9 vs DLO's 2/9, reflecting solid financial health.
| Metric | DLODLocal Limited | AFRMAffirm Holdings, … |
|---|---|---|
| ROE (TTM)Return on equity | +33.9% | +8.0% |
| ROA (TTM)Return on assets | +12.1% | +2.2% |
| ROICReturn on invested capital | +59.4% | -0.7% |
| ROCEReturn on capital employed | +29.5% | -0.9% |
| Piotroski ScoreFundamental quality 0–9 | 2 | 6 |
| Debt / EquityFinancial leverage | 0.11x | 2.56x |
| Net DebtTotal debt minus cash | -$371M | $6.5B |
| Cash & Equiv.Liquid assets | $425M | $1.4B |
| Total DebtShort + long-term debt | $54M | $7.9B |
| Interest CoverageEBIT ÷ Interest expense | 5.06x | 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 $3,941 for DLO. Over the past 12 months, DLO leads with a +33.5% total return vs AFRM's -26.8%. The 3-year compound annual growth rate (CAGR) favors AFRM at 51.1% vs DLO's -5.1% — a key indicator of consistent wealth creation.
| Metric | DLODLocal Limited | AFRMAffirm Holdings, … |
|---|---|---|
| YTD ReturnYear-to-date | -13.0% | -36.5% |
| 1-Year ReturnPast 12 months | +33.5% | -26.8% |
| 3-Year ReturnCumulative with dividends | -14.6% | +244.9% |
| 5-Year ReturnCumulative with dividends | -60.6% | -48.6% |
| 10-Year ReturnCumulative with dividends | -60.6% | -51.7% |
| CAGR (3Y)Annualised 3-year return | -5.1% | +51.1% |
Risk & Volatility
DLO is the less volatile stock with a 1.29 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. DLO currently trades 72.9% from its 52-week high vs AFRM's 47.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | DLODLocal Limited | AFRMAffirm Holdings, … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.29x | 2.41x |
| 52-Week HighHighest price in past year | $16.78 | $100.00 |
| 52-Week LowLowest price in past year | $7.61 | $30.90 |
| % of 52W HighCurrent price vs 52-week peak | +72.9% | +47.0% |
| RSI (14)Momentum oscillator 0–100 | 45.4 | 34.4 |
| Avg Volume (50D)Average daily shares traded | 1.0M | 5.3M |
Analyst Outlook
Wall Street rates DLO as "Buy" and AFRM as "Buy". Consensus price targets imply 79.7% upside for AFRM (target: $84) vs 38.9% for DLO (target: $17).
| Metric | DLODLocal Limited | AFRMAffirm Holdings, … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $17.00 | $84.40 |
| # AnalystsCovering analysts | 13 | 32 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 2 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +5.0% | +1.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Jun 21 | Feb 26 | Change |
|---|---|---|---|
| DLocal Limited (DLO) | 100 | 42.67 | -57.3% |
| Affirm Holdings, In… (AFRM) | 100 | 90.67 | -9.3% |
Affirm Holdings, In… (AFRM) returned -49% over 5 years vs DLocal Limited (DLO)'s -61%.
Chart 2Revenue Growth — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| DLocal Limited (DLO) | $55M | $746M | +1249.2% |
| Affirm Holdings, In… (AFRM) | $264M | $3.2B | +1119.7% |
Affirm Holdings, Inc.'s revenue grew from $264M (2019) to $3.2B (2025) — a 51.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| DLocal Limited (DLO) | 28.2% | 16.1% | -42.8% |
| Affirm Holdings, In… (AFRM) | -45.6% | 1.6% | +103.6% |
Affirm Holdings, Inc.'s net margin went from -46% (2019) to 2% (2025).
Chart 4P/E Ratio History — 4 Years
| Stock | 2021 | 2024 | Change |
|---|---|---|---|
| DLocal Limited (DLO) | 137.3 | 28.9 | -79.0% |
DLocal Limited has traded in a 29x–137x P/E range over 4 years; current trailing P/E is ~31x.
Chart 5EPS Growth — 10 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| DLocal Limited (DLO) | 0.05 | 0.39 | +631.7% |
| Affirm Holdings, In… (AFRM) | -0.47 | 0.15 | +131.9% |
Affirm Holdings, Inc.'s EPS grew from $-0.47 (2019) to $0.15 (2025).
Chart 6Free Cash Flow — 5 Years
DLocal Limited generated $-55M FCF in 2024 (-192% vs 2021). Affirm Holdings, Inc. generated $602M FCF in 2025 (+382% vs 2021).
DLO vs AFRM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is DLO or AFRM a better buy right now?
DLocal Limited (DLO) offers the better valuation at 31.4x trailing P/E (14.0x forward), making it the more compelling value choice. Analysts rate DLocal Limited (DLO) a "Buy" — based on 13 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 — DLO or AFRM?
On trailing P/E, DLocal Limited (DLO) is the cheapest at 31.4x versus Affirm Holdings, Inc. at 313.2x. On forward P/E, DLocal Limited is actually cheaper at 14.0x.
03Which is the better long-term investment — DLO or AFRM?
Over the past 5 years, Affirm Holdings, Inc. (AFRM) delivered a total return of -48.6%, compared to -60.6% for DLocal Limited (DLO). 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 DLO's -60.6%. 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 — DLO or AFRM?
By beta (market sensitivity over 5 years), DLocal Limited (DLO) is the lower-risk stock at 1.29β versus Affirm Holdings, Inc.'s 2.41β — meaning AFRM is approximately 87% more volatile than DLO relative to the S&P 500. On balance sheet safety, DLocal Limited (DLO) carries a lower debt/equity ratio of 11% versus 3% for Affirm Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — DLO or AFRM?
DLocal Limited (DLO) is the more profitable company, earning 16.1% net margin versus 1.6% for Affirm Holdings, Inc. — meaning it keeps 16.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DLO leads at 18.8% 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 DLO or AFRM more undervalued right now?
On forward earnings alone, DLocal Limited (DLO) trades at 14.0x forward P/E versus 43.6x for Affirm Holdings, Inc. — 29.7x 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 — DLO or AFRM?
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 DLO or AFRM better for a retirement portfolio?
For long-horizon retirement investors, DLocal Limited (DLO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.29)). 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 (DLO: -60.6%, 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 DLO and AFRM?
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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