Analyzing SHF (NASDAQ:SHFS) & Upstart (NASDAQ:UPST)

Upstart (NASDAQ:UPST) and SHF (NASDAQ:SHFS) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Valuation and Earnings

This table compares Upstart and SHF”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Upstart	$628.83 million	7.23	-$128.58 million	($1.46)	-33.25
SHF	$22.21 million	0.72	-$17.28 million	$0.17	1.68

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Upstart	-20.20%	-25.87%	-7.95%
SHF	36.34%	10.24%	5.66%

Risk and Volatility

Upstart has a beta of 2.25, suggesting that its stock price is 125% more volatile than the S&P 500. Comparatively, SHF has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Upstart and SHF, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Upstart	2	7	5	0	2.21
SHF	0	0	0	0	0.00

Upstart currently has a consensus price target of $73.38, suggesting a potential upside of 51.18%. Given Upstart’s stronger consensus rating and higher possible upside, equities analysts plainly believe Upstart is more favorable than SHF.

Institutional & Insider Ownership

63.0% of Upstart shares are owned by institutional investors. Comparatively, 29.2% of SHF shares are owned by institutional investors. 18.1% of Upstart shares are owned by insiders. Comparatively, 60.5% of SHF shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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 SHF

SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.