AFRM’s 13% Single Week Rise Brings Valuations Into Focus – Is PAY a Better Deal?
Paymentus (PAY) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Affirm (AFRM), suggesting you may be better off investing in PAY
- PAY’s quarterly revenue growth was 48.9%, vs. AFRM’s 35.9%.
- In addition, its Last 12 Months revenue growth came in at 47.8%, ahead of AFRM’s 42.5%.
- PAY’s 3-year average margin is stronger: 3.0% vs. AFRM’s -28.7%.
AFRM operates a digital, mobile-first commerce platform offering point-of-sale payments, merchant solutions, and a consumer app, serving around 29,000 merchants in the US and Canada. PAY provides cloud-based bill payment technology and solutions, founded in 2004 and based in Redmond, Washington.
Valuation & Performance Overview
| AFRM | PAY | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 128.0 | 81.7 | PAY |
| Revenue Growth | |||
| Last Quarter | 35.9% | 48.9% | PAY |
| Last 12 Months | 42.5% | 47.8% | PAY |
| Last 3 Year Average | 34.5% | 32.3% | AFRM |
| Operating Margins | |||
| Last 12 Months | 6.5% | 5.4% | AFRM |
| Last 3 Year Average | -28.7% | 3.0% | PAY |
| Momentum | |||
| Last 3 Year Return | 131.4% | 160.5% | PAY |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: AFRM Revenue Comparison | PAY Revenue Comparison
See more margin details: AFRM Operating Income Comparison | PAY Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell PAY Stock to see if Paymentus’s edge holds up under the hood or if Affirm still has cards to play (see Buy or Sell AFRM Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| AFRM Return | – | – | -90% | 408% | 24% | 27% | -34% | ||
| PAY Return | 0% | 52% | -77% | 123% | 83% | 3% | 23% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 8% | 93% | <=== | |
| Monthly Win Rates [3] | |||||||||
| AFRM Win Rate | – | 36% | 25% | 67% | 33% | 71% | 39% | ||
| PAY Win Rate | 0% | 42% | 17% | 75% | 50% | 29% | 35% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| AFRM Max Drawdown | – | – | -91% | -7% | -51% | -41% | -32% | ||
| PAY Max Drawdown | 0% | -0% | -80% | -9% | -17% | -26% | -22% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read PAY Dip Buyer Analyses and AFRM Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.