LZ
LegalZoom.com, Inc.
Specialty Business Services
Market Cap$1.05B
5Y Perf.-84.0%
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Stock Comparison
LZ vs AFRM
Revenue, margins, valuation, and 5-year total return — side by side.
AFRM
Affirm Holdings, Inc.
Software - Infrastructure
Market Cap$22.44B
5Y Perf.+0.0%
LZ vs AFRM — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | LZ | AFRM |
|---|---|---|
| Industry | Specialty Business Services | Software - Infrastructure |
| Market Cap | $1.05B | $22.44B |
| Revenue (TTM) | $780M | $3.20B |
| Net Income (TTM) | $11M | $382M |
| Gross Margin | 65.9% | 62.6% |
| Operating Margin | 2.6% | 10.2% |
| Forward P/E | 8.2x | 62.5x |
| Total Debt | $24M | $7.85B |
| Cash & Equiv. | $203M | $1.35B |
LZ vs AFRM — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
LZ
AFRM
| Stock | Jun 21 | May 26 | Return |
|---|---|---|---|
| LegalZoom.com, Inc. (LZ) | 100 | 16.0 | -84.0% |
| Affirm Holdings, In… (AFRM) | 100 | 100.0 | +0.0% |
Price return only. Dividends and distributions are not included.
Quick Verdict: LZ vs AFRM
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: AFRM leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. LegalZoom.com, Inc. is the stronger pick specifically for valuation and capital efficiency and capital preservation and lower volatility. This set spans 2 sectors — these stocks serve different portfolio roles, not just different price points.
LZ
LegalZoom.com, Inc.
The Income Pick
LZ is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 0 yrs, beta 1.31
- Lower volatility, beta 1.31, Low D/E 14.2%, current ratio 0.75x
- Beta 1.31, current ratio 0.75x
Best for: income & stability and sleep-well-at-night
AFRM
Affirm Holdings, Inc.
The Growth Play
AFRM carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 38.8%, EPS growth 109.0%, 3Y rev CAGR 33.7%
- -30.7% 10Y total return vs LZ's -84.0%
- 38.8% revenue growth vs LZ's 10.9%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | AFRM | 38.8% revenue growth vs LZ's 10.9% |
| Value | LZ | Lower P/E (8.2x vs 62.5x) |
| Quality / Margins | AFRM | 11.9% margin vs LZ's 1.5% |
| Stability / Safety | LZ | Beta 1.31 vs AFRM's 2.72, lower leverage |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | AFRM | +30.7% vs LZ's -16.3% |
| Efficiency (ROA) | AFRM | 3.1% ROA vs LZ's 2.2% |
LZ vs AFRM — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
LZ vs AFRM — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLLZLAGGINGAFRM
AFRMAffirm Holdings, Inc.
2leads
LZLegalZoom.com, Inc.
2leads
6 Total Categories
CATEGORYLEADERvs AFRMMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
AFRM3/5
Valuation MetricsMultiples, price ratios, and targets
LZ6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
LZ5/8
Total Returns1Y, 3Y, 5Y total returns with dividends
AFRM6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
AFRM leads this category, winning 3 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
AFRM is the larger business by revenue, generating $3.2B annually — 4.1x LZ's $780M. AFRM is the more profitable business, keeping 11.9% of every revenue dollar as net income compared to LZ's 1.5%. On growth, LZ holds the edge at +12.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | LZLegalZoom.com, In… | AFRMAffirm Holdings, … |
|---|---|---|
| RevenueTrailing 12 months | $780M | $3.2B |
| EBITDAEarnings before interest/tax | $56M | $533M |
| Net IncomeAfter-tax profit | $11M | $382M |
| Free Cash FlowCash after capex | $148M | $787M |
| Gross MarginGross profit ÷ Revenue | +65.9% | +62.6% |
| Operating MarginEBIT ÷ Revenue | +2.6% | +10.2% |
| Net MarginNet income ÷ Revenue | +1.5% | +11.9% |
| FCF MarginFCF ÷ Revenue | +18.9% | +24.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | +12.9% | -65.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -64.8% | — |
AFRM leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
LZ leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 75.9x trailing earnings, LZ trades at a 83% valuation discount to AFRM's 449.1x P/E. On an enterprise value basis, LZ's 14.1x EV/EBITDA is more attractive than AFRM's 210.0x.
| Metric | LZLegalZoom.com, In… | AFRMAffirm Holdings, … |
|---|---|---|
| Market CapShares × price | $1.0B | $22.4B |
| Enterprise ValueMkt cap + debt − cash | $871M | $28.9B |
| Trailing P/EPrice ÷ TTM EPS | 75.88x | 449.07x |
| Forward P/EPrice ÷ next-FY EPS est. | 8.17x | 62.49x |
| PEG RatioP/E ÷ EPS growth rate | 4.53x | — |
| EV / EBITDAEnterprise value multiple | 14.10x | 209.99x |
| Price / SalesMarket cap ÷ Revenue | 1.39x | 6.96x |
| Price / BookPrice ÷ Book value/share | 6.52x | 7.48x |
| Price / FCFMarket cap ÷ FCF | 7.10x | 37.29x |
LZ leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
LZ leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
AFRM delivers a 11.2% return on equity — every $100 of shareholder capital generates $11 in annual profit, vs $6 for LZ. LZ carries lower financial leverage with a 0.14x 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 LZ's 5/9, reflecting solid financial health.
| Metric | LZLegalZoom.com, In… | AFRMAffirm Holdings, … |
|---|---|---|
| ROE (TTM)Return on equity | +6.4% | +11.2% |
| ROA (TTM)Return on assets | +2.2% | +3.1% |
| ROICReturn on invested capital | — | -0.7% |
| ROCEReturn on capital employed | +9.0% | -0.9% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 0.14x | 2.56x |
| Net DebtTotal debt minus cash | -$179M | $6.5B |
| Cash & Equiv.Liquid assets | $203M | $1.4B |
| Total DebtShort + long-term debt | $24M | $7.9B |
| Interest CoverageEBIT ÷ Interest expense | 58.95x | 1.88x |
LZ leads this category, winning 5 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
AFRM leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in AFRM five years ago would be worth $12,474 today (with dividends reinvested), compared to $1,604 for LZ. Over the past 12 months, AFRM leads with a +30.7% total return vs LZ's -16.3%. The 3-year compound annual growth rate (CAGR) favors AFRM at 78.0% vs LZ's -8.8% — a key indicator of consistent wealth creation.
| Metric | LZLegalZoom.com, In… | AFRMAffirm Holdings, … |
|---|---|---|
| YTD ReturnYear-to-date | -36.7% | -9.0% |
| 1-Year ReturnPast 12 months | -16.3% | +30.7% |
| 3-Year ReturnCumulative with dividends | -24.1% | +464.2% |
| 5-Year ReturnCumulative with dividends | -84.0% | +24.7% |
| 10-Year ReturnCumulative with dividends | -84.0% | -30.7% |
| CAGR (3Y)Annualised 3-year return | -8.8% | +78.0% |
AFRM leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — LZ and AFRM each lead in 1 of 2 comparable metrics.
Risk & Volatility
LZ is the less volatile stock with a 1.31 beta — it tends to amplify market swings less than AFRM's 2.72 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. AFRM currently trades 67.4% from its 52-week high vs LZ's 49.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LZLegalZoom.com, In… | AFRMAffirm Holdings, … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.31x | 2.72x |
| 52-Week HighHighest price in past year | $12.40 | $100.00 |
| 52-Week LowLowest price in past year | $5.28 | $42.09 |
| % of 52W HighCurrent price vs 52-week peak | +49.0% | +67.4% |
| RSI (14)Momentum oscillator 0–100 | 47.1 | 63.1 |
| Avg Volume (50D)Average daily shares traded | 2.5M | 5.3M |
Evenly matched — LZ and AFRM each lead in 1 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates LZ as "Buy" and AFRM as "Buy". Consensus price targets imply 34.6% upside for LZ (target: $8) vs 19.9% for AFRM (target: $81).
| Metric | LZLegalZoom.com, In… | AFRMAffirm Holdings, … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $8.17 | $80.77 |
| # AnalystsCovering analysts | 12 | 33 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 0 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +7.7% | +1.1% |
Insufficient data to determine a leader in this category.
Key Takeaway
AFRM leads in 2 of 6 categories (Income & Cash Flow, Total Returns). LZ leads in 2 (Valuation Metrics, Profitability & Efficiency). 1 tied.
Best OverallLegalZoom.com, Inc. (LZ)Leads 2 of 6 categories
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LZ vs AFRM: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is LZ or AFRM a better buy right now?
For growth investors, Affirm Holdings, Inc.
(AFRM) is the stronger pick with 38. 8% revenue growth year-over-year, versus 10. 9% for LegalZoom. com, Inc. (LZ). LegalZoom. com, Inc. (LZ) offers the better valuation at 75. 9x trailing P/E (8. 2x forward), making it the more compelling value choice. Analysts rate LegalZoom. com, Inc. (LZ) a "Buy" — based on 12 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 — LZ or AFRM?
On trailing P/E, LegalZoom.
com, Inc. (LZ) is the cheapest at 75. 9x versus Affirm Holdings, Inc. at 449. 1x. On forward P/E, LegalZoom. com, Inc. is actually cheaper at 8. 2x.
03Which is the better long-term investment — LZ or AFRM?
Over the past 5 years, Affirm Holdings, Inc.
(AFRM) delivered a total return of +24. 7%, compared to -84. 0% for LegalZoom. com, Inc. (LZ). Over 10 years, the gap is even starker: AFRM returned -30. 7% versus LZ's -84. 0%. 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 — LZ or AFRM?
By beta (market sensitivity over 5 years), LegalZoom.
com, Inc. (LZ) is the lower-risk stock at 1. 31β versus Affirm Holdings, Inc. 's 2. 72β — meaning AFRM is approximately 108% more volatile than LZ relative to the S&P 500. On balance sheet safety, LegalZoom. com, Inc. (LZ) carries a lower debt/equity ratio of 14% versus 3% for Affirm Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — LZ or AFRM?
By revenue growth (latest reported year), Affirm Holdings, Inc.
(AFRM) is pulling ahead at 38. 8% versus 10. 9% for LegalZoom. com, Inc. (LZ). On earnings-per-share growth, the picture is similar: Affirm Holdings, Inc. grew EPS 109. 0% year-over-year, compared to -50. 0% for LegalZoom. com, Inc.. Over a 3-year CAGR, AFRM leads at 33. 7% annualised revenue growth. 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.
06Which has better profit margins — LZ or AFRM?
LegalZoom.
com, Inc. (LZ) is the more profitable company, earning 2. 0% net margin versus 1. 6% for Affirm Holdings, Inc. — meaning it keeps 2. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LZ leads at 1. 9% 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.
07Is LZ or AFRM more undervalued right now?
On forward earnings alone, LegalZoom.
com, Inc. (LZ) trades at 8. 2x forward P/E versus 62. 5x for Affirm Holdings, Inc. — 54. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LZ: 34. 6% to $8. 17.
08Which pays a better dividend — LZ 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.
09Is LZ or AFRM better for a retirement portfolio?
For long-horizon retirement investors, LegalZoom.
com, Inc. (LZ) 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 (LZ: -84. 0%, AFRM: -30. 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.
10What are the main differences between LZ and AFRM?
These companies operate in different sectors (LZ (Industrials) and AFRM (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: LZ is a small-cap quality compounder stock; AFRM is a mid-cap high-growth stock. 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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%
(LZ: 12.9% · AFRM: -65.8%)P/E Ratio<
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