Cannae (NYSE:CNNE – Get Free Report) and Affirm (NASDAQ:AFRM – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Profitability
This table compares Cannae and Affirm’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cannae | -38.18% | -14.10% | -10.60% |
| Affirm | 45.29% | 47.91% | 14.46% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Cannae and Affirm, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cannae | 1 | 1 | 2 | 0 | 2.25 |
| Affirm | 0 | 8 | 24 | 0 | 2.75 |
Risk & Volatility
Cannae has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Affirm has a beta of 3.61, suggesting that its stock price is 261% more volatile than the S&P 500.
Institutional and Insider Ownership
88.1% of Cannae shares are held by institutional investors. Comparatively, 69.3% of Affirm shares are held by institutional investors. 10.9% of Cannae shares are held by company insiders. Comparatively, 11.0% of Affirm shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Cannae and Affirm”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cannae | $423.60 million | 1.59 | -$513.20 million | ($3.02) | -5.14 |
| Affirm | $4.26 billion | 5.67 | $1.93 billion | $5.52 | 12.97 |
Affirm has higher revenue and earnings than Cannae. Cannae is trading at a lower price-to-earnings ratio than Affirm, indicating that it is currently the more affordable of the two stocks.
Summary
Affirm beats Cannae on 13 of the 14 factors compared between the two stocks.
About Cannae
Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. was founded in 2014 and is based in Las Vegas, Nevada.
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.
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