Upstart vs Avant

Upstart and Avant are two well-known fintech companies that offer personal loan services. Upstart utilizes artificial intelligence and machine learning algorithms to assess creditworthiness, while Avant focuses on providing loans to individuals with less-than-perfect credit scores. Both companies have seen rapid growth in recent years, but they differ in their approach to underwriting and customer base. Understanding the strengths and weaknesses of Upstart vs Avant stocks can help investors make informed decisions in the competitive fintech market.

Upstart or Avant?

When comparing Upstart and Avant, 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 Avant.

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 Avant has a dividend yield of 0.82%. 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, Avant reports a 5-year dividend growth of 0.00% year and a payout ratio of 19.81%.

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 -23.19 and Avant's P/E ratio at 30.42. 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 7.87 while Avant's P/B ratio is 6.45.

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 Avant's is 0.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Upstart's ROE at -32.50% and Avant's ROE at 22.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $52.89 for Upstart and ¥2299.00 for Avant. Over the past year, Upstart's prices ranged from $19.84 to $57.31, with a yearly change of 188.86%. Avant's prices fluctuated between ¥1188.00 and ¥2369.00, with a yearly change of 99.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.