Contrasting Upstart (NASDAQ:UPST) & Lufax (NYSE:LU)

Upstart (NASDAQ:UPSTGet Rating) and Lufax (NYSE:LUGet Rating) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Upstart and Lufax, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Upstart 5 6 2 0 1.77
Lufax 1 2 2 0 2.20

Upstart presently has a consensus target price of $88.38, suggesting a potential upside of 261.20%. Lufax has a consensus target price of $5.80, suggesting a potential upside of 64.77%. Given Upstart’s higher probable upside, analysts clearly believe Upstart is more favorable than Lufax.

Institutional & Insider Ownership

44.8% of Upstart shares are held by institutional investors. Comparatively, 15.7% of Lufax shares are held by institutional investors. 18.9% of Upstart shares are held 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.

Volatility and Risk

Upstart has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Lufax has a beta of -0.29, suggesting that its share price is 129% less volatile than the S&P 500.

Profitability

This table compares Upstart and Lufax’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Upstart 8.48% 11.50% 4.96%
Lufax 23.77% 16.50% 4.40%

Earnings & Valuation

This table compares Upstart and Lufax’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Upstart $848.59 million 2.35 $135.44 million $0.89 27.49
Lufax $9.70 billion 0.83 $2.60 billion $0.97 3.63

Lufax has higher revenue and earnings than Upstart. Lufax is trading at a lower price-to-earnings ratio than Upstart, indicating that it is currently the more affordable of the two stocks.

Summary

Upstart beats Lufax on 7 of the 13 factors compared between the two stocks.

About Upstart

(Get Rating)

Upstart Holdings, Inc., together with its subsidiaries, operates a cloud-based artificial intelligence (AI) lending platform in the United States. Its platform aggregates consumer demand for loans and connects it to its network of the company's AI-enabled bank partners. The company was founded in 2012 and is headquartered in San Mateo, California.

About Lufax

(Get Rating)

Lufax Holding Ltd operates a technology-empowered personal financial services platform in China. It offers loan products, including unsecured loans and secured loans, as well as consumer finance loans. The company also provides wealth management platforms, such as Lufax (Lu.com), Lu International (Singapore), and Lu International (Hong Kong) to the middle class and affluent investors to invest in products and portfolios; retail credit facilitation services platform that offers small business owners with lending solutions; and technology empowerment solutions for financial institutions. Lufax Holding Ltd was founded in 2005 and is headquartered in Shanghai, China.

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