Affirm (NASDAQ:AFRM) & Oxford Square Capital (NASDAQ:OXSQ) Head-To-Head Comparison

Affirm (NASDAQ:AFRM) and Oxford Square Capital (NASDAQ:OXSQ) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Risk and Volatility

Affirm has a beta of 3.82, suggesting that its share price is 282% more volatile than the S&P 500. Comparatively, Oxford Square Capital has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Affirm and Oxford Square Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Affirm	0	8	24	0	2.75
Oxford Square Capital	1	0	0	0	1.00

Affirm presently has a consensus target price of $98.15, indicating a potential upside of 27.22%. Given Affirm’s stronger consensus rating and higher possible upside, research analysts clearly believe Affirm is more favorable than Oxford Square Capital.

Insider & Institutional Ownership

69.3% of Affirm shares are owned by institutional investors. Comparatively, 6.4% of Oxford Square Capital shares are owned by institutional investors. 11.0% of Affirm shares are owned by company insiders. Comparatively, 6.5% of Oxford Square Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Affirm and Oxford Square Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Affirm	$4.26 billion	6.11	$1.93 billion	$5.52	13.98
Oxford Square Capital	-$32.67 million	-4.22	-$18.73 million	($0.45)	-2.84

Affirm has higher revenue and earnings than Oxford Square Capital. Oxford Square Capital is trading at a lower price-to-earnings ratio than Affirm, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Affirm and Oxford Square Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Affirm	45.29%	47.91%	14.46%
Oxford Square Capital	-93.65%	14.41%	6.81%

Summary

Affirm beats Oxford Square Capital on 14 of the 14 factors compared between the two stocks.

About Affirm

Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time with terms ranging up to 60 months. The company has active merchants covering small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and companies with an omni-channel presence. Its merchants represent a range of industries, including sporting goods and outdoors, furniture and homewares, travel and ticketing, apparel, accessories, consumer electronics, and jewelry. Affirm Holdings, Inc. was founded in 2012 and is headquartered in San Francisco, California.

About Oxford Square Capital

Oxford Square Capital Corp. is a business development company, operates as a closed-end, non-diversified management investment company. It is a private equity and mezzanine firm. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, common stock and syndicated bank loans. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. Oxford Square Capital Corp., formerly known as TICC Capital Corp., was founded in 2003 and is headquartered in Greenwich, Connecticut.