Comprehensive Stock Comparison
Compare Klarna Group plc (KLAR) 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 KLAR's 21.2% |
| Value | AFRM | Lower P/E (43.6x vs 2023.9x) |
| Quality / Margins | AFRM | 9.7% net margin vs KLAR's -9.3% |
| Stability / Safety | AFRM | Beta 2.41 vs KLAR's 2.77 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | AFRM | -26.8% vs KLAR's -70.4% |
| Efficiency (ROA) | AFRM | 2.2% ROA vs KLAR's -1.3%, ROIC -0.7% vs -218.7% |
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
Klarna is a fintech company that provides buy-now-pay-later (BNPL) services and digital banking solutions to consumers and merchants. It generates revenue primarily from merchant fees — typically 3-4% of transaction value — and consumer interest on installment loans, along with banking fees and interchange income. Its key advantage is its seamless checkout integration with thousands of retailers and sophisticated AI-driven risk assessment that enables instant credit decisions with low default rates.
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
AFRM leads in 3 of 6 categories (Profitability & Efficiency, Total Returns). KLAR leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
KLAR and AFRM operate at a comparable scale, with $3.0B and $2.9B in trailing revenue. AFRM is the more profitable business, keeping 9.7% of every revenue dollar as net income compared to KLAR's -9.3%.
| Metric | KLARKlarna Group plc | AFRMAffirm Holdings, … |
|---|---|---|
| RevenueTrailing 12 months | $3.0B | $2.9B |
| EBITDAEarnings before interest/tax | -$109M | $420M |
| Net IncomeAfter-tax profit | -$279M | $282M |
| Free Cash FlowCash after capex | $3.2B | $619M |
| Gross MarginGross profit ÷ Revenue | +63.1% | +59.5% |
| Operating MarginEBIT ÷ Revenue | -8.2% | +7.9% |
| Net MarginNet income ÷ Revenue | -9.3% | +9.7% |
| FCF MarginFCF ÷ Revenue | +105.1% | +21.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | -62.1% |
| EPS Growth (YoY)Latest quarter vs prior year | — | +60.9% |
Valuation Metrics
At 313.2x trailing earnings, AFRM trades at a 85% valuation discount to KLAR's 2023.9x P/E. On an enterprise value basis, KLAR's 39.2x EV/EBITDA is more attractive than AFRM's 158.0x.
| Metric | KLARKlarna Group plc | AFRMAffirm Holdings, … |
|---|---|---|
| Market CapShares × price | $5.1B | $15.3B |
| Enterprise ValueMkt cap + debt − cash | $2.7B | $21.8B |
| Trailing P/EPrice ÷ TTM EPS | 2023.88x | 313.20x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 43.63x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 39.17x | 158.00x |
| Price / SalesMarket cap ÷ Revenue | 1.92x | 4.74x |
| Price / BookPrice ÷ Book value/share | 2.19x | 5.22x |
| Price / FCFMarket cap ÷ FCF | 9.44x | 25.38x |
Profitability & Efficiency
AFRM delivers a 8.0% return on equity — every $100 of shareholder capital generates $8 in annual profit, vs $-11 for KLAR. KLAR carries lower financial leverage with a 0.35x debt-to-equity ratio, signaling a more conservative balance sheet compared to AFRM's 2.56x. On the Piotroski fundamental quality scale (0–9), KLAR scores 7/9 vs AFRM's 6/9, reflecting strong financial health.
| Metric | KLARKlarna Group plc | AFRMAffirm Holdings, … |
|---|---|---|
| ROE (TTM)Return on equity | -10.6% | +8.0% |
| ROA (TTM)Return on assets | -1.3% | +2.2% |
| ROICReturn on invested capital | -2.2% | -0.7% |
| ROCEReturn on capital employed | -3.0% | -0.9% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 0.35x | 2.56x |
| Net DebtTotal debt minus cash | -$2.5B | $6.5B |
| Cash & Equiv.Liquid assets | $3.2B | $1.4B |
| Total DebtShort + long-term debt | $791M | $7.9B |
| Interest CoverageEBIT ÷ Interest expense | 0.15x | 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 $2,959 for KLAR. Over the past 12 months, AFRM leads with a -26.8% total return vs KLAR's -70.4%. The 3-year compound annual growth rate (CAGR) favors AFRM at 51.1% vs KLAR's -33.4% — a key indicator of consistent wealth creation.
| Metric | KLARKlarna Group plc | AFRMAffirm Holdings, … |
|---|---|---|
| YTD ReturnYear-to-date | -52.5% | -36.5% |
| 1-Year ReturnPast 12 months | -70.4% | -26.8% |
| 3-Year ReturnCumulative with dividends | -70.4% | +244.9% |
| 5-Year ReturnCumulative with dividends | -70.4% | -48.6% |
| 10-Year ReturnCumulative with dividends | -70.4% | -51.7% |
| CAGR (3Y)Annualised 3-year return | -33.4% | +51.1% |
Risk & Volatility
AFRM is the less volatile stock with a 2.41 beta — it tends to amplify market swings less than KLAR's 2.77 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. AFRM currently trades 47.0% from its 52-week high vs KLAR's 23.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | KLARKlarna Group plc | AFRMAffirm Holdings, … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.77x | 2.41x |
| 52-Week HighHighest price in past year | $57.20 | $100.00 |
| 52-Week LowLowest price in past year | $12.50 | $30.90 |
| % of 52W HighCurrent price vs 52-week peak | +23.7% | +47.0% |
| RSI (14)Momentum oscillator 0–100 | 27.0 | 34.4 |
| Avg Volume (50D)Average daily shares traded | 3.4M | 5.3M |
Analyst Outlook
Wall Street rates KLAR as "Buy" and AFRM as "Buy". Consensus price targets imply 182.9% upside for KLAR (target: $38) vs 79.7% for AFRM (target: $84).
| Metric | KLARKlarna Group plc | AFRMAffirm Holdings, … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $38.36 | $84.40 |
| # AnalystsCovering analysts | 8 | 32 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +1.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Klarna Group plc (KLAR) | $390M | $2.7B | +584.5% |
| Affirm Holdings, In… (AFRM) | $264M | $3.2B | +1119.7% |
Chart 2Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Klarna Group plc (KLAR) | 3.2% | 0.1% | -96.5% |
| Affirm Holdings, In… (AFRM) | -45.6% | 1.6% | +103.6% |
Chart 3EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Klarna Group plc (KLAR) | 0 | 0.01 | — |
| Affirm Holdings, In… (AFRM) | -0.47 | 0.15 | +131.9% |
Chart 4Free Cash Flow — 5 Years
Klarna Group plc generated $542M FCF in 2024 (+238% vs 2021). Affirm Holdings, Inc. generated $602M FCF in 2025 (+382% vs 2021).
KLAR vs AFRM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is KLAR or AFRM a better buy right now?
Affirm Holdings, Inc. (AFRM) offers the better valuation at 313.2x trailing P/E (43.6x forward), making it the more compelling value choice. Analysts rate Klarna Group plc (KLAR) a "Buy" — based on 8 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 — KLAR or AFRM?
On trailing P/E, Affirm Holdings, Inc. (AFRM) is the cheapest at 313.2x versus Klarna Group plc at 2023.9x.
03Which is the better long-term investment — KLAR or AFRM?
Over the past 5 years, Affirm Holdings, Inc. (AFRM) delivered a total return of -48.6%, compared to -70.4% for Klarna Group plc (KLAR). 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 KLAR's -70.4%. 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 — KLAR or AFRM?
By beta (market sensitivity over 5 years), Affirm Holdings, Inc. (AFRM) is the lower-risk stock at 2.41β versus Klarna Group plc's 2.77β — meaning KLAR is approximately 15% more volatile than AFRM relative to the S&P 500. On balance sheet safety, Klarna Group plc (KLAR) carries a lower debt/equity ratio of 35% versus 3% for Affirm Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — KLAR or AFRM?
Affirm Holdings, Inc. (AFRM) is the more profitable company, earning 1.6% net margin versus 0.1% for Klarna Group plc — meaning it keeps 1.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AFRM leads at -2.7% versus -4.5% for KLAR. At the gross margin level — before operating expenses — KLAR leads at 77.7%, 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 KLAR or AFRM more undervalued right now?
Analyst consensus price targets imply the most upside for KLAR: 182.9% to $38.36.
07Which pays a better dividend — KLAR 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 KLAR or AFRM better for a retirement portfolio?
For long-horizon retirement investors, Affirm Holdings, Inc. (AFRM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Klarna Group plc (KLAR) carries a higher beta of 2.77 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AFRM: -51.7%, KLAR: -70.4%), 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 KLAR 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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