LendingTree vs Upstart Which Is More Profitable?

LendingTree and Upstart are two prominent companies in the financial technology sector, both offering unique services that cater to different aspects of the lending industry. LendingTree is a leading online marketplace that connects consumers with various financial products, while Upstart specializes in using artificial intelligence and machine learning to facilitate faster and more accurate loan approvals. Investors looking to diversify their portfolio with exposure to the lending sector may find both LendingTree and Upstart stocks appealing due to their innovative approaches and potential for growth.

LendingTree or Upstart?

When comparing LendingTree 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 LendingTree 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. LendingTree 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. LendingTree reports a 5-year dividend growth of 0.00% year and a payout ratio of -4.64%. 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 LendingTree P/E ratio at -19.11 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. LendingTree P/B ratio is 7.40 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, LendingTree has seen a 5-year revenue growth of -0.04%, while Upstart's is -0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LendingTree's ROE at -29.44% and Upstart's ROE at -27.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $47.56 for LendingTree and $76.63 for Upstart. Over the past year, LendingTree's prices ranged from $13.87 to $62.49, with a yearly change of 350.54%. 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.