Bread Financial vs Upstart Which Performs Better?

Bread Financial and Upstart are both fintech companies that have gained attention in the stock market recently. Bread Financial, a buy now, pay later platform, has experienced significant growth as consumers seek alternative payment options. On the other hand, Upstart, an AI lending platform, has captured investor interest with its innovative approach to credit underwriting. Both companies offer unique investment opportunities in the evolving fintech sector, and investors are closely watching their performance in the market.

Bread Financial or Upstart?

When comparing Bread Financial 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 Bread Financial 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. Bread Financial has a dividend yield of 1.29%, while Upstart has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bread Financial reports a 5-year dividend growth of -18.10% year and a payout ratio of 13.46%. 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 Bread Financial P/E ratio at 10.40 and Upstart's P/E ratio at -45.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bread Financial P/B ratio is 1.04 while Upstart's P/B ratio is 12.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bread Financial has seen a 5-year revenue growth of -0.40%, while Upstart's is -0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bread Financial's ROE at 10.20% and Upstart's ROE at -27.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $65.20 for Bread Financial and $80.17 for Upstart. Over the past year, Bread Financial's prices ranged from $28.00 to $66.71, with a yearly change of 138.25%. Upstart's prices fluctuated between $20.60 and $88.94, with a yearly change of 331.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.