Comprehensive Stock Comparison
Compare StoneCo Ltd. (STNE) 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 STNE's 14.9% |
| Value | STNE | Lower P/E (1.5x vs 43.6x) |
| Quality / Margins | AFRM | 9.7% net margin vs STNE's -31.3% |
| Stability / Safety | STNE | Beta 1.02 vs AFRM's 2.41, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | STNE | +81.6% vs AFRM's -26.8% |
| Efficiency (ROA) | AFRM | 2.2% ROA vs STNE's -2.3%, ROIC -0.7% vs -7.2% |
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
StoneCo is a Brazilian financial technology company that provides payment processing and digital commerce solutions primarily to small and medium-sized businesses. It generates revenue mainly from transaction fees on payment processing—both in-store and online—alongside software subscription fees and financial services. The company's competitive advantage lies in its hyper-local distribution network of Stone Hubs, which offer personalized service and deep market penetration across Brazil's fragmented merchant landscape.
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 2 of 6 categories (Financial Metrics, Profitability & Efficiency). STNE leads in 2 (Valuation Metrics, Risk & Volatility). 1 tied.
Financial Metrics (TTM)
STNE and AFRM operate at a comparable scale, with $4.2B and $2.9B in trailing revenue. AFRM is the more profitable business, keeping 9.7% of every revenue dollar as net income compared to STNE's -31.3%. On growth, STNE holds the edge at -15.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | STNEStoneCo Ltd. | AFRMAffirm Holdings, … |
|---|---|---|
| RevenueTrailing 12 months | $4.2B | $2.9B |
| EBITDAEarnings before interest/tax | -$1.5B | $420M |
| Net IncomeAfter-tax profit | -$1.3B | $282M |
| Free Cash FlowCash after capex | -$1.4B | $619M |
| Gross MarginGross profit ÷ Revenue | +12.7% | +59.5% |
| Operating MarginEBIT ÷ Revenue | -59.1% | +7.9% |
| Net MarginNet income ÷ Revenue | -31.3% | +9.7% |
| FCF MarginFCF ÷ Revenue | -33.6% | +21.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | -15.7% | -62.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +36.5% | +60.9% |
Valuation Metrics
| Metric | STNEStoneCo Ltd. | AFRMAffirm Holdings, … |
|---|---|---|
| Market CapShares × price | $4.1B | $15.3B |
| Enterprise ValueMkt cap + debt − cash | $5.6B | $21.8B |
| Trailing P/EPrice ÷ TTM EPS | -17.28x | 313.20x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.50x | 43.63x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | 158.00x |
| Price / SalesMarket cap ÷ Revenue | 3.67x | 4.74x |
| Price / BookPrice ÷ Book value/share | 2.21x | 5.22x |
| Price / FCFMarket cap ÷ FCF | — | 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 STNE. STNE carries lower financial leverage with a 1.09x 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 STNE's 3/9, reflecting solid financial health.
| Metric | STNEStoneCo Ltd. | AFRMAffirm Holdings, … |
|---|---|---|
| ROE (TTM)Return on equity | -11.2% | +8.0% |
| ROA (TTM)Return on assets | -2.3% | +2.2% |
| ROICReturn on invested capital | -7.2% | -0.7% |
| ROCEReturn on capital employed | -8.7% | -0.9% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 6 |
| Debt / EquityFinancial leverage | 1.09x | 2.56x |
| Net DebtTotal debt minus cash | $7.7B | $6.5B |
| Cash & Equiv.Liquid assets | $5.2B | $1.4B |
| Total DebtShort + long-term debt | $12.9B | $7.9B |
| Interest CoverageEBIT ÷ Interest expense | 0.79x | 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 $1,874 for STNE. Over the past 12 months, STNE leads with a +81.6% total return vs AFRM's -26.8%. The 3-year compound annual growth rate (CAGR) favors AFRM at 51.1% vs STNE's 25.4% — a key indicator of consistent wealth creation.
| Metric | STNEStoneCo Ltd. | AFRMAffirm Holdings, … |
|---|---|---|
| YTD ReturnYear-to-date | +14.4% | -36.5% |
| 1-Year ReturnPast 12 months | +81.6% | -26.8% |
| 3-Year ReturnCumulative with dividends | +97.4% | +244.9% |
| 5-Year ReturnCumulative with dividends | -81.3% | -48.6% |
| 10-Year ReturnCumulative with dividends | -46.4% | -51.7% |
| CAGR (3Y)Annualised 3-year return | +25.4% | +51.1% |
Risk & Volatility
STNE is the less volatile stock with a 1.02 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. STNE currently trades 84.2% from its 52-week high vs AFRM's 47.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | STNEStoneCo Ltd. | AFRMAffirm Holdings, … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.02x | 2.41x |
| 52-Week HighHighest price in past year | $19.95 | $100.00 |
| 52-Week LowLowest price in past year | $8.64 | $30.90 |
| % of 52W HighCurrent price vs 52-week peak | +84.2% | +47.0% |
| RSI (14)Momentum oscillator 0–100 | 51.4 | 34.4 |
| Avg Volume (50D)Average daily shares traded | 4.2M | 5.3M |
Analyst Outlook
Wall Street rates STNE as "Buy" and AFRM as "Buy". Consensus price targets imply 79.7% upside for AFRM (target: $84) vs 21.3% for STNE (target: $20).
| Metric | STNEStoneCo Ltd. | AFRMAffirm Holdings, … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $20.38 | $84.40 |
| # AnalystsCovering analysts | 20 | 32 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +7.5% | +1.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 21 | Feb 26 | Change |
|---|---|---|---|
| StoneCo Ltd. (STNE) | 100 | 22.63 | -77.4% |
| Affirm Holdings, In… (AFRM) | 110.66 | 63.75 | -42.4% |
Affirm Holdings, In… (AFRM) returned -49% over 5 years vs StoneCo Ltd. (STNE)'s -81%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| StoneCo Ltd. (STNE) | $165M | $5.8B | +3429.3% |
| Affirm Holdings, In… (AFRM) | $264M | $3.2B | +1119.7% |
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| StoneCo Ltd. (STNE) | -66.5% | -29.9% | +55.0% |
| Affirm Holdings, In… (AFRM) | -45.6% | 1.6% | +103.6% |
Chart 4P/E Ratio History — 4 Years
| Stock | 2018 | 2023 | Change |
|---|---|---|---|
| StoneCo Ltd. (STNE) | 16.8 | 3.6 | -78.6% |
StoneCo Ltd. has traded in a 4x–29x P/E range over 4 years; current trailing P/E is ~-17x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| StoneCo Ltd. (STNE) | -0.58 | -5.02 | -765.5% |
| Affirm Holdings, In… (AFRM) | -0.47 | 0.15 | +131.9% |
Chart 6Free Cash Flow — 5 Years
StoneCo Ltd. generated $-5B FCF in 2024 (-312% vs 2021). Affirm Holdings, Inc. generated $602M FCF in 2025 (+382% vs 2021).
STNE vs AFRM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is STNE 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 StoneCo Ltd. (STNE) a "Buy" — based on 20 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 — STNE or AFRM?
On forward P/E, StoneCo Ltd. is actually cheaper at 1.5x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — STNE or AFRM?
Over the past 5 years, Affirm Holdings, Inc. (AFRM) delivered a total return of -48.6%, compared to -81.3% for StoneCo Ltd. (STNE). 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: STNE returned -46.4% versus AFRM's -51.7%. 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 — STNE or AFRM?
By beta (market sensitivity over 5 years), StoneCo Ltd. (STNE) is the lower-risk stock at 1.02β versus Affirm Holdings, Inc.'s 2.41β — meaning AFRM is approximately 137% more volatile than STNE relative to the S&P 500. On balance sheet safety, StoneCo Ltd. (STNE) carries a lower debt/equity ratio of 109% versus 3% for Affirm Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — STNE or AFRM?
Affirm Holdings, Inc. (AFRM) is the more profitable company, earning 1.6% net margin versus -29.9% for StoneCo Ltd. — 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 -30.9% for STNE. 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 STNE or AFRM more undervalued right now?
On forward earnings alone, StoneCo Ltd. (STNE) trades at 1.5x forward P/E versus 43.6x for Affirm Holdings, Inc. — 42.1x 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 — STNE 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 STNE or AFRM better for a retirement portfolio?
For long-horizon retirement investors, StoneCo Ltd. (STNE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.02)). 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 (STNE: -46.4%, 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 STNE 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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