Analyzing Provident Financial (OTCMKTS:FPLPY) and Affirm (NASDAQ:AFRM)

Provident Financial (OTCMKTS:FPLPYGet Rating) and Affirm (NASDAQ:AFRMGet Rating) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Valuation and Earnings

This table compares Provident Financial and Affirm’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Provident Financial $735.12 million 0.99 -$44.14 million N/A N/A
Affirm $870.46 million 7.13 -$430.92 million ($2.37) -9.14

Provident Financial has higher earnings, but lower revenue than Affirm.

Profitability

This table compares Provident Financial and Affirm’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Provident Financial N/A N/A N/A
Affirm -52.07% -18.00% -7.42%

Risk & Volatility

Provident Financial has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Affirm has a beta of 3.03, meaning that its stock price is 203% more volatile than the S&P 500.

Institutional & Insider Ownership

58.3% of Affirm shares are owned by institutional investors. 16.5% of Affirm shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Provident Financial and Affirm, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Provident Financial 0 1 0 0 2.00
Affirm 3 6 6 0 2.20

Affirm has a consensus target price of $65.29, suggesting a potential upside of 201.45%. Given Affirm’s stronger consensus rating and higher probable upside, analysts plainly believe Affirm is more favorable than Provident Financial.

Summary

Affirm beats Provident Financial on 8 of the 12 factors compared between the two stocks.

Provident Financial Company Profile (Get Rating)

Provident Financial plc provides personal credit products to the non-standard lending market in the United Kingdom and the Republic of Ireland. The company operates through Vanquis Bank and Moneybarn segments. It offers credit cards products, unsecured personal loans, and savings products. The company also provides vehicle finance for cars, motorbikes, and light commercial vehicles. It serves 1.6 million customers. Provident Financial plc was founded in 1880 and is headquartered in Bradford, the United Kingdom.

Affirm Company Profile (Get Rating)

Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States and Canada. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its payments network and partnership with an originating bank, enables consumers to pay for a purchase over time with terms ranging from one to forty-eight months. As of June 30, 2021, the company had approximately 29,000 merchants integrated on its platform covering small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and companies. Its merchants represent a range of industries, including sporting goods and outdoors, furniture and homewares, travel, apparel, accessories, consumer electronics, and jewelry. The company was founded in 2012 and is headquartered in San Francisco, California.

Receive News & Ratings for Provident Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Provident Financial and related companies with MarketBeat.com's FREE daily email newsletter.