Upstart vs Affirm Which Is Stronger?

Upstart and Affirm are two innovative companies in the financial technology sector that have gained attention from investors in recent years. Upstart, a peer-to-peer lending platform, uses artificial intelligence to assess creditworthiness and underwrite loans, while Affirm is a buy-now-pay-later service that allows customers to split purchases into manageable payments. Both companies have shown impressive growth and market potential, making their stocks attractive options for investors seeking exposure to the evolving fintech industry.

Upstart or Affirm?

When comparing Upstart and Affirm, 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 Upstart and Affirm.

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. Upstart has a dividend yield of -%, while Affirm has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Upstart reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Affirm 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 Upstart P/E ratio at -36.62 and Affirm's P/E ratio at -40.05. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Upstart P/B ratio is 10.34 while Affirm's P/B ratio is 6.30.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $64.60 for Upstart and $51.70 for Affirm. Over the past year, Upstart's prices ranged from $20.60 to $86.07, with a yearly change of 317.82%. Affirm's prices fluctuated between $22.25 and $59.27, with a yearly change of 166.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.