KLAR vs AFRM Stock Comparison: AI Score, Valuation, Performance and Upside
Klarna offers a larger, more globally diversified buy-now-pay-later platform, while Affirm provides a more US-focused installment lending business with a longer public trading history.
Investors weighing Klarna against Affirm are choosing between global scale in buy-now-pay-later and a more established, US-centric competitor with a longer track record as a public company.
AFRM holds the edge across 4 of 5 key metrics in this comparison. AFRM leads on both 1-year return (+3.91%) and forward P/E quality (14.45x vs 18.16x for KLAR), a relatively favorable combination of momentum and valuation. AFRM leads on both revenue growth (33.00%) and operating margin (12.63%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies similar upside for both: +39.85% for KLAR and +39.12% for AFRM.
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want exposure to a globally diversified buy-now-pay-later platform
- Believe in continued international e-commerce and installment payment adoption
- Are comfortable with the risks of a newly public company
- Seek broader geographic diversification than a US-focused competitor
- Prefer a more US-focused buy-now-pay-later business
- Want a longer public company track record to evaluate
- Believe in the company's path toward sustained profitability
- Are comfortable with credit risk inherent in consumer installment lending
| Metric | KLAR | AFRM |
|---|---|---|
| AI scorei | 21.4 | 27.1 |
| AI ranki | N/A | #2356 |
| Latest closei | $13.51 | $75.92 |
| 1M returni | -4.25% | +5.31% |
| 3M returni | -29.71% | -4.91% |
| 6M returni | -7.91% | +25.95% |
| 1Y returni | -64.22% | +3.91% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | KLAR | AFRM |
|---|---|---|
| 1Y ago | $3.58K (-64.2%) started 2025-10-15 | $10.99K (+9.9%) started 2025-10-16 |
| 5Y ago | $3.16K (-68.4%) started 2025-09-11 | $4.83K (-51.7%) started 2021-10-18 |
| 10Y ago | $3.16K (-68.4%) started 2025-09-11 | $7.88K (-21.2%) started 2021-01-13 |
Hypothetical — past performance does not guarantee future results.
| Metric | KLAR | AFRM |
|---|---|---|
| Market capi | $5.48B | $24.11B |
| Trailing P/Ei | N/A | 12.92 |
| Forward P/Ei | 18.16 | 14.45 |
| Price/Salesi | N/A | N/A |
| EV/Revenuei | 0.64 | 7.61 |
| Analyst targeti | $20.28 | $99.39 |
| Target upsidei | +39.85% | +39.12% |
| Metric | KLAR | AFRM |
|---|---|---|
| Revenue growthi | 26.60% | 33.00% |
| Earnings growthi | N/A | 2186.90% |
| EPS growthi | N/A | +2186.90% |
| FCF margini | +19.77% | +11.23% |
| Operating margini | 2.97% | 12.63% |
| Profit margini | -3.52% | 45.29% |
| ROIC proxyi | -4.29% | 45.13% |
| Return on equityi | -4.29% | 45.13% |
| Dividend yieldi | N/A | N/A |
| Payout ratioi | 0.00% | 0.00% |
| Dividend growth streaki | N/A | N/A |
| Betai | N/A | 3.61 |
| Debt/equityi | 65.72 | 182.77 |
| Current ratioi | 23.15 | 11.98 |
| Quick ratioi | 22.34 | 8.36 |
Over the past year, KLAR and AFRM have moved moderately in the same direction (correlation of 0.54), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | KLAR | AFRM |
|---|---|---|---|
| 1Y | Growthi | -64.22% | +9.92% |
| CAGRi | -64.25% | +9.93% | |
| Volatilityi | 69.14% | 59.75% | |
| Sharpe ratioi | -1.19 | 0.38 | |
| Sortino ratioi | -1.51 | 0.56 | |
| Max drawdowni | 69.12% | 48.79% | |
| Current drawdowni | 66.00% | 11.49% | |
| Avg drawdowni | 47.98% | 17.95% | |
| Ulcer Indexi | 52.05% | 22.08% | |
| Max daily dropi | 26.91% | 11.99% | |
| Max wkly dropi | 32.30% | 17.23% | |
| 5Y | Growthi | -68.39% | -51.72% |
| CAGRi | -65.16% | -13.57% | |
| Volatilityi | 68.03% | 91.63% | |
| Sharpe ratioi | -1.26 | 0.24 | |
| Sortino ratioi | -1.60 | 0.37 | |
| Max drawdowni | 73.02% | 94.71% | |
| Current drawdowni | 70.29% | 54.95% | |
| Avg drawdowni | 50.62% | 72.15% | |
| Ulcer Indexi | 54.90% | 74.20% | |
| Max daily dropi | 26.91% | 22.63% | |
| Max wkly dropi | 32.30% | 53.94% | |
| 10Y | Growthi | -68.39% | -21.22% |
| CAGRi | -65.16% | -4.06% | |
| Volatilityi | 68.03% | 93.54% | |
| Sharpe ratioi | -1.26 | 0.36 | |
| Sortino ratioi | -1.60 | 0.57 | |
| Max drawdowni | 73.02% | 94.71% | |
| Current drawdowni | 70.29% | 54.95% | |
| Avg drawdowni | 50.62% | 67.85% | |
| Ulcer Indexi | 54.90% | 70.97% | |
| Max daily dropi | 26.91% | 22.63% | |
| Max wkly dropi | 32.30% | 53.94% |
| Category | KLAR | AFRM |
|---|---|---|
| Company | Klarna Group plc | Affirm Holdings, Inc. |
| Sector | Financial Services | Financial Services |
| Industry | Credit Services | Credit Services |
| Core business | Klarna is a global buy-now-pay-later and digital payments company, originally founded in Sweden, offering installment payment options and shopping-related financial services to consumers and merchants worldwide. | Affirm provides buy-now-pay-later installment loans and related payment products to US consumers at the point of sale, partnering with merchants across e-commerce and retail. |
| Investor focus | Watch global merchant and consumer adoption trends, credit loss rates, and progress expanding into broader financial services beyond installment payments. | Watch loan volume growth, credit performance, and the pace toward sustained profitability as key metrics. |
- Large, globally diversified user and merchant base across many countries
- Well-established brand recognition in the buy-now-pay-later category internationally
- Expanding into adjacent financial services beyond core installment payments
- Established partnerships with major US merchants and e-commerce platforms
- Longer public trading history than some newer buy-now-pay-later peers
- Transparent, no-hidden-fee installment lending model that appeals to consumers
- Relatively new public company with a limited track record of reporting results
- Credit and consumer default risk inherent in installment lending, especially in economic downturns
- Intensifying competition from other buy-now-pay-later and payment providers globally
- Credit risk and default rates can rise during periods of economic weakness
- Profitability has historically been inconsistent as the company invests in growth
- Regulatory attention on buy-now-pay-later lending practices remains a risk
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