Comprehensive Stock Comparison
Compare Block, Inc. (XYZ) vs Affirm Holdings, Inc. (AFRM) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
Selected Stocks
Add up to 10 tickers. Use presets or search to get started.
Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AFRM | 38.8% revenue growth vs XYZ's 0.3% |
| Value | XYZ | Lower P/E (19.0x vs 43.6x) |
| Quality / Margins | AFRM | 9.7% net margin vs XYZ's 5.4% |
| Stability / Safety | XYZ | Beta 1.59 vs AFRM's 2.41, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | XYZ | -2.5% vs AFRM's -26.8% |
| Efficiency (ROA) | XYZ | 3.3% ROA vs AFRM's 2.2%, ROIC 6.4% 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
Block is a financial technology company that provides payment processing and business software tools primarily for small and medium-sized businesses. It generates revenue primarily from transaction fees on payment processing — about 90% of total revenue — with additional income from subscription services, hardware sales, and banking services like Cash App. The company's key advantage is its integrated ecosystem that combines payment hardware, software, and banking services, creating network effects and high switching costs for merchants.
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
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
XYZ leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). AFRM leads in 1 (Financial Metrics). 1 tied.
Financial Metrics (TTM)
XYZ is the larger business by revenue, generating $24.2B annually — 8.3x AFRM's $2.9B. Profitability is closely matched — net margins range from 9.7% (AFRM) to 5.4% (XYZ). On growth, XYZ holds the edge at +3.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | XYZBlock, Inc. | AFRMAffirm Holdings, … |
|---|---|---|
| RevenueTrailing 12 months | $24.2B | $2.9B |
| EBITDAEarnings before interest/tax | $1.7B | $420M |
| Net IncomeAfter-tax profit | $1.3B | $282M |
| Free Cash FlowCash after capex | $2.4B | $619M |
| Gross MarginGross profit ÷ Revenue | +42.8% | +59.5% |
| Operating MarginEBIT ÷ Revenue | +7.1% | +7.9% |
| Net MarginNet income ÷ Revenue | +5.4% | +9.7% |
| FCF MarginFCF ÷ Revenue | +10.0% | +21.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +3.6% | -62.1% |
| EPS Growth (YoY)Latest quarter vs prior year | -93.8% | +60.9% |
Valuation Metrics
At 30.3x trailing earnings, XYZ trades at a 90% valuation discount to AFRM's 313.2x P/E. On an enterprise value basis, XYZ's 22.9x EV/EBITDA is more attractive than AFRM's 158.0x.
| Metric | XYZBlock, Inc. | AFRMAffirm Holdings, … |
|---|---|---|
| Market CapShares × price | $38.4B | $15.3B |
| Enterprise ValueMkt cap + debt − cash | $39.1B | $21.8B |
| Trailing P/EPrice ÷ TTM EPS | 30.33x | 313.20x |
| Forward P/EPrice ÷ next-FY EPS est. | 19.00x | 43.63x |
| PEG RatioP/E ÷ EPS growth rate | 0.83x | — |
| EV / EBITDAEnterprise value multiple | 22.87x | 158.00x |
| Price / SalesMarket cap ÷ Revenue | 1.59x | 4.74x |
| Price / BookPrice ÷ Book value/share | 1.79x | 5.22x |
| Price / FCFMarket cap ÷ FCF | 15.82x | 25.38x |
Profitability & Efficiency
AFRM delivers a 8.0% return on equity — every $100 of shareholder capital generates $8 in annual profit, vs $6 for XYZ. XYZ carries lower financial leverage with a 0.33x debt-to-equity ratio, signaling a more conservative balance sheet compared to AFRM's 2.56x.
| Metric | XYZBlock, Inc. | AFRMAffirm Holdings, … |
|---|---|---|
| ROE (TTM)Return on equity | +5.9% | +8.0% |
| ROA (TTM)Return on assets | +3.3% | +2.2% |
| ROICReturn on invested capital | +6.4% | -0.7% |
| ROCEReturn on capital employed | +6.0% | -0.9% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 6 |
| Debt / EquityFinancial leverage | 0.33x | 2.56x |
| Net DebtTotal debt minus cash | $725M | $6.5B |
| Cash & Equiv.Liquid assets | $6.6B | $1.4B |
| Total DebtShort + long-term debt | $7.3B | $7.9B |
| Interest CoverageEBIT ÷ Interest expense | 13.21x | 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 $2,643 for XYZ. Over the past 12 months, XYZ leads with a -2.5% total return vs AFRM's -26.8%. The 3-year compound annual growth rate (CAGR) favors AFRM at 51.1% vs XYZ's -6.0% — a key indicator of consistent wealth creation.
| Metric | XYZBlock, Inc. | AFRMAffirm Holdings, … |
|---|---|---|
| YTD ReturnYear-to-date | -2.2% | -36.5% |
| 1-Year ReturnPast 12 months | -2.5% | -26.8% |
| 3-Year ReturnCumulative with dividends | -17.0% | +244.9% |
| 5-Year ReturnCumulative with dividends | -73.6% | -48.6% |
| 10-Year ReturnCumulative with dividends | +510.2% | -51.7% |
| CAGR (3Y)Annualised 3-year return | -6.0% | +51.1% |
Risk & Volatility
XYZ is the less volatile stock with a 1.59 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. XYZ currently trades 77.2% from its 52-week high vs AFRM's 47.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | XYZBlock, Inc. | AFRMAffirm Holdings, … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.59x | 2.41x |
| 52-Week HighHighest price in past year | $82.50 | $100.00 |
| 52-Week LowLowest price in past year | $44.27 | $30.90 |
| % of 52W HighCurrent price vs 52-week peak | +77.2% | +47.0% |
| RSI (14)Momentum oscillator 0–100 | 45.6 | 34.4 |
| Avg Volume (50D)Average daily shares traded | 5.8M | 5.3M |
Analyst Outlook
Wall Street rates XYZ as "Buy" and AFRM as "Buy". Consensus price targets imply 79.7% upside for AFRM (target: $84) vs 32.9% for XYZ (target: $85).
| Metric | XYZBlock, Inc. | AFRMAffirm Holdings, … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $84.67 | $84.40 |
| # AnalystsCovering analysts | 33 | 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 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 21 | Feb 26 | Change |
|---|---|---|---|
| Block, Inc. (XYZ) | 100 | 27.21 | -72.8% |
| Affirm Holdings, In… (AFRM) | 110.66 | 63.75 | -42.4% |
Affirm Holdings, In… (AFRM) returned -49% over 5 years vs Block, Inc. (XYZ)'s -74%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Block, Inc. (XYZ) | $1.7B | $24.2B | +1315.9% |
| Affirm Holdings, In… (AFRM) | $264M | $3.2B | +1119.7% |
Block, Inc.'s revenue grew from $1.7B (2016) to $24.2B (2025) — a 34.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Block, Inc. (XYZ) | -10.0% | 5.4% | +153.7% |
| Affirm Holdings, In… (AFRM) | -45.6% | 1.6% | +103.6% |
Block, Inc.'s net margin went from -10% (2016) to 5% (2025).
Chart 4P/E Ratio History — 5 Years
| Stock | 2019 | 2025 | Change |
|---|---|---|---|
| Block, Inc. (XYZ) | 77.2 | 31 | -59.8% |
Block, Inc. has traded in a 19x–495x P/E range over 5 years; current trailing P/E is ~30x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Block, Inc. (XYZ) | -0.5 | 2.1 | +520.0% |
| Affirm Holdings, In… (AFRM) | -0.47 | 0.15 | +131.9% |
Block, Inc.'s EPS grew from $-0.50 (2016) to $2.10 (2025).
Chart 6Free Cash Flow — 5 Years
Block, Inc. generated $2B FCF in 2025 (+346% vs 2021). Affirm Holdings, Inc. generated $602M FCF in 2025 (+382% vs 2021).
XYZ vs AFRM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is XYZ or AFRM a better buy right now?
Block, Inc. (XYZ) offers the better valuation at 30.3x trailing P/E (19.0x forward), making it the more compelling value choice. Analysts rate Block, Inc. (XYZ) a "Buy" — based on 33 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 — XYZ or AFRM?
On trailing P/E, Block, Inc. (XYZ) is the cheapest at 30.3x versus Affirm Holdings, Inc. at 313.2x. On forward P/E, Block, Inc. is actually cheaper at 19.0x.
03Which is the better long-term investment — XYZ or AFRM?
Over the past 5 years, Affirm Holdings, Inc. (AFRM) delivered a total return of -48.6%, compared to -73.6% for Block, Inc. (XYZ). 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: XYZ returned +510.2% 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 — XYZ or AFRM?
By beta (market sensitivity over 5 years), Block, Inc. (XYZ) is the lower-risk stock at 1.59β versus Affirm Holdings, Inc.'s 2.41β — meaning AFRM is approximately 52% more volatile than XYZ relative to the S&P 500. On balance sheet safety, Block, Inc. (XYZ) carries a lower debt/equity ratio of 33% versus 3% for Affirm Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — XYZ or AFRM?
Block, Inc. (XYZ) is the more profitable company, earning 5.4% net margin versus 1.6% for Affirm Holdings, Inc. — meaning it keeps 5.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: XYZ leads at 7.1% 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 XYZ or AFRM more undervalued right now?
On forward earnings alone, Block, Inc. (XYZ) trades at 19.0x forward P/E versus 43.6x for Affirm Holdings, Inc. — 24.6x 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 — XYZ 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 XYZ or AFRM better for a retirement portfolio?
For long-horizon retirement investors, Block, Inc. (XYZ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+510.2% 10Y return). 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 (XYZ: +510.2%, 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 XYZ 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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.