Financial Analysis: Upstart (NASDAQ:UPST) vs. Binah Capital Group (NASDAQ:BCG)

Binah Capital Group (NASDAQ:BCG) and Upstart (NASDAQ:UPST) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Volatility & Risk

Binah Capital Group has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Upstart has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500.

Profitability

This table compares Binah Capital Group and Upstart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Binah Capital Group	N/A	N/A	-7.16%
Upstart	-38.05%	-32.01%	-10.23%

Analyst Ratings

This is a summary of recent recommendations and price targets for Binah Capital Group and Upstart, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Binah Capital Group	0	0	0	0	N/A
Upstart	3	7	1	0	1.82

Upstart has a consensus price target of $31.50, indicating a potential downside of 35.02%. Given Upstart’s higher possible upside, analysts clearly believe Upstart is more favorable than Binah Capital Group.

Earnings and Valuation

This table compares Binah Capital Group and Upstart”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Binah Capital Group	$167.96 million	0.21	$570,000.00	N/A	N/A
Upstart	$513.56 million	8.45	-$240.13 million	($2.34)	-20.72

Binah Capital Group has higher earnings, but lower revenue than Upstart.

Institutional and Insider Ownership

5.0% of Binah Capital Group shares are held by institutional investors. Comparatively, 63.0% of Upstart shares are held by institutional investors. 83.0% of Binah Capital Group shares are held by insiders. Comparatively, 18.1% of Upstart shares are held 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.

Summary

Upstart beats Binah Capital Group on 6 of the 11 factors compared between the two stocks.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.

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.