Upwork vs Freelancer Which Is More Promising?

Upwork and Freelancer are both leading platforms in the freelance industry, connecting businesses with talented professionals from around the world. While they have similar business models, there are key differences that set them apart. Upwork, a publicly traded company, has seen significant growth in recent years and is considered a safer investment option with a larger market share. Freelancer, on the other hand, is a smaller, privately-held company with more volatility in its stock performance. Investors should carefully consider these factors when deciding between Upwork and Freelancer stocks.

Upwork or Freelancer?

When comparing Upwork and Freelancer, 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 Upwork and Freelancer.

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. Upwork has a dividend yield of -%, while Freelancer has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Upwork reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Freelancer 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 Upwork P/E ratio at 26.74 and Freelancer's P/E ratio at 208.27. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Upwork P/B ratio is 5.58 while Freelancer's P/B ratio is 3.27.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Upwork has seen a 5-year revenue growth of 0.06%, while Freelancer's is 0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Upwork's ROE at 22.84% and Freelancer's ROE at 1.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.08 for Upwork and $0.09 for Freelancer. Over the past year, Upwork's prices ranged from $8.43 to $17.79, with a yearly change of 111.03%. Freelancer's prices fluctuated between $0.04 and $0.42, with a yearly change of 950.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.