Upstart Holdings, Inc. (UPST) vs The Western Union Company (WU)

Upstart Holdings, Inc. and The Western Union Company are both Credit Services companies. Upstart Holdings, Inc. is the larger, with a market value of $2.4B against $1.9B — 1.3× the size. The Western Union Company trades at the lower P/E: 4.9× against 38.4×. Upstart Holdings, Inc. grew revenue faster over the last twelve months: 46.3% against −1.63%. The Western Union Company has the higher net margin (9.79% vs 4.84%) and the higher return on invested capital (14.9% vs 1.75%). Across the 21 metrics below, The Western Union Company leads on 15 and Upstart Holdings, Inc. on 6.

Valuation

Metric UPST WU Credit Services median
P/E 38.40 4.94 9.64
P/S 1.85 0.48 0.87
P/B 2.88 2.11 1.16
Price to free cash flow n/m 4.56 2.99
EV/EBITDA 43.56 4.52 9.58
EV/Sales 2.63 0.92 2.32
Earnings yield 2.60% 20.23% 6.72%
Free cash flow yield (13.27%) 21.94% 12.33%

Profitability

Metric UPST WU Credit Services median
Gross margin 82.50% 35.09% 77.13%
Operating margin 3.99% 15.91% 0.34%
Net margin 4.84% 9.79% 9.25%
Free cash flow margin (24.49%) 10.51% 13.03%
Return on equity 7.94% 43.97% 8.49%
Return on assets 2.14% 4.96% 2.29%
Return on invested capital 1.75% 14.91% 4.09%

Growth

Metric UPST WU Credit Services median
Revenue growth (TTM) 46.30% (1.63%) 4.62%
EPS growth (last fiscal year) 131.25% (44.53%) —
Revenue growth, 5-year CAGR 34.93% (3.48%) 9.13%
Net income growth, 5-year CAGR 55.04% (7.66%) 0.00%

Health

Metric UPST WU Credit Services median
Debt to equity 2.51 2.95 0.68
Current ratio 0.49 1.12 1.55
Net debt to EBITDA 10.83 1.78 0.13

Dividend

Metric UPST WU Credit Services median
Dividend yield — 7.89% 3.34%
Payout ratio 0.00 0.48 0.00

Size

Metric UPST WU Credit Services median
Market cap 2.41b 1.89b 872.19m

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