Upstart (NASDAQ:UPST – Get Free Report) and Oportun Financial (NASDAQ:OPRT – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.
Profitability
This table compares Upstart and Oportun Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Upstart | 4.86% | 9.67% | 2.50% |
| Oportun Financial | 3.88% | 14.99% | 1.87% |
Earnings & Valuation
This table compares Upstart and Oportun Financial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Upstart | $1.04 billion | 2.11 | $53.60 million | $0.59 | 37.71 |
| Oportun Financial | $956.70 million | 0.56 | $25.25 million | $0.74 | 15.70 |
Upstart has higher revenue and earnings than Oportun Financial. Oportun Financial is trading at a lower price-to-earnings ratio than Upstart, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
63.0% of Upstart shares are owned by institutional investors. Comparatively, 82.7% of Oportun Financial shares are owned by institutional investors. 17.3% of Upstart shares are owned by insiders. Comparatively, 1.6% of Oportun Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Upstart and Oportun Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Upstart | 2 | 8 | 7 | 0 | 2.29 |
| Oportun Financial | 0 | 3 | 2 | 0 | 2.40 |
Upstart currently has a consensus price target of $32.40, indicating a potential upside of 45.62%. Oportun Financial has a consensus price target of $9.25, indicating a potential downside of 20.40%. Given Upstart’s higher probable upside, equities analysts plainly believe Upstart is more favorable than Oportun Financial.
Volatility & Risk
Upstart has a beta of 2.48, suggesting that its share price is 148% more volatile than the S&P 500. Comparatively, Oportun Financial has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.
Summary
Upstart beats Oportun Financial on 10 of the 14 factors compared between the two stocks.
About Upstart
Upstart Holdings, Inc., together with its subsidiaries, operates a cloud-based artificial intelligence (AI) lending platform in the United States. Its platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar loans that connects consumer demand for loans to its to bank and credit unions. Upstart Holdings, Inc. was founded in 2012 and is headquartered in San Mateo, California.
About Oportun Financial
Oportun Financial Corporation provides financial services. The company offers personal loans and credit cards. It serves customers through online and over the phone, as well as through retail and Lending as a Service partner locations. The company was founded in 2005 and is headquartered in San Carlos, California.
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