Affirm vs Upstart Which Performs Better?

Affirm and Upstart are two companies revolutionizing the financial industry with their innovative approaches to lending and online payments. Affirm specializes in providing consumers with flexible financing options at the point of sale, while Upstart uses artificial intelligence to assess creditworthiness and make personalized loan offers. Both companies have experienced rapid growth and garnered significant investor interest. As Affirm and Upstart continue to disrupt the traditional banking sector, investors are keeping a close eye on their stocks for potential opportunities in the market.

Affirm or Upstart?

When comparing Affirm and Upstart, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Affirm and Upstart.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Affirm has a dividend yield of -%, while Upstart has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Affirm reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Upstart reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Affirm P/E ratio at -40.52 and Upstart's P/E ratio at -41.51. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Affirm P/B ratio is 6.38 while Upstart's P/B ratio is 11.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Affirm has seen a 5-year revenue growth of 4.24%, while Upstart's is -0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Affirm's ROE at -16.49% and Upstart's ROE at -27.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $47.98 for Affirm and $76.63 for Upstart. Over the past year, Affirm's prices ranged from $21.88 to $57.76, with a yearly change of 163.99%. Upstart's prices fluctuated between $20.25 and $86.07, with a yearly change of 325.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.