Upstart vs Marcus Which Is Superior?

Upstart and Marcus are two prominent companies in the financial sector known for their innovative approaches to investing and lending. Upstart utilizes artificial intelligence and machine learning algorithms to assess creditworthiness and provide loans, appealing to both borrowers and investors. On the other hand, Marcus, operated by Goldman Sachs, offers a range of financial products, including high-yield savings accounts and personal loans. Both companies have their strengths and weaknesses, making them valuable options for investors seeking growth and stability in their portfolios.

Upstart or Marcus?

When comparing Upstart and Marcus, 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 Marcus.

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 Marcus has a dividend yield of 1.27%. 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, Marcus reports a 5-year dividend growth of -13.65% year and a payout ratio of -86.08%.

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 -41.29 and Marcus's P/E ratio at -69.31. 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 11.66 while Marcus's P/B ratio is 1.53.

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 Marcus's is -0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Upstart's ROE at -27.60% and Marcus's ROE at -2.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $76.69 for Upstart and $22.02 for Marcus. Over the past year, Upstart's prices ranged from $20.60 to $86.07, with a yearly change of 317.82%. Marcus's prices fluctuated between $9.56 and $23.16, with a yearly change of 142.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.