Atlanticus (NASDAQ:ATLC – Get Free Report) and Upstart (NASDAQ:UPST – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Atlanticus and Upstart, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Atlanticus | 0 | 2 | 5 | 1 | 2.88 |
| Upstart | 1 | 9 | 7 | 0 | 2.35 |
Atlanticus presently has a consensus target price of $127.00, indicating a potential upside of 56.13%. Upstart has a consensus target price of $32.40, indicating a potential upside of 54.65%. Given Atlanticus’ stronger consensus rating and higher probable upside, equities analysts plainly believe Atlanticus is more favorable than Upstart.
Profitability
This table compares Atlanticus and Upstart’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Atlanticus | 7.65% | 27.37% | 2.48% |
| Upstart | 4.86% | 9.67% | 2.50% |
Earnings & Valuation
This table compares Atlanticus and Upstart”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Atlanticus | $1.97 billion | 0.63 | $122.20 million | $11.35 | 7.17 |
| Upstart | $1.04 billion | 1.99 | $53.60 million | $0.59 | 35.51 |
Atlanticus has higher revenue and earnings than Upstart. Atlanticus is trading at a lower price-to-earnings ratio than Upstart, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Atlanticus has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, Upstart has a beta of 2.48, indicating that its share price is 148% more volatile than the S&P 500.
Institutional and Insider Ownership
14.2% of Atlanticus shares are owned by institutional investors. Comparatively, 63.0% of Upstart shares are owned by institutional investors. 51.0% of Atlanticus shares are owned by company insiders. Comparatively, 17.3% of Upstart shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Atlanticus beats Upstart on 9 of the 15 factors compared between the two stocks.
About Atlanticus
Atlanticus Holdings Corporation is a financial technology and consumer finance company that provides credit products to consumers, including people who may have limited access to traditional credit. It works with banks, retailers and other partners to offer credit cards, installment loans and point-of-sale financing. The company’s offerings include general-purpose and private-label credit cards, as well as financing for purchases in areas such as healthcare and home improvement. Atlanticus also provides financing solutions through relationships with auto dealers and other businesses.
About Upstart
Upstart Holdings, Inc. operates an artificial intelligence–based lending marketplace that connects consumers seeking loans with banks and credit unions. Its platform uses machine-learning models and borrower data to help lending partners assess credit risk and make lending decisions. The company’s offerings include personal loans and technology for auto lending, including auto retail and refinancing. Upstart was founded in 2012 by Dave Girouard, Paul Gu and Anna Counselman. Girouard serves as the company’s chief executive officer.
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