WallStSmart

Upstart Holdings Inc (UPST)vsVisa Inc. Class A (V)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Visa Inc. Class A generates 3360% more annual revenue ($44.49B vs $1.29B). V leads profitability with a 50.8% profit margin vs 4.7%. V trades at a lower P/E of 31.3x. V earns a higher WallStSmart Score of 68/100 (B-).

UPST

Buy

53

out of 100

Grade: C-

Growth: 8.7Profit: 4.5Value: 4.0Quality: 5.0
Piotroski: 5/9Altman Z: 0.80

V

Strong Buy

68

out of 100

Grade: B-

Growth: 6.7Profit: 10.0Value: 4.3Quality: 5.0
Piotroski: 4/9Altman Z: 1.84

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

UPST2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
42.3%10/10

Revenue surging 42.3% year-over-year

EPS GrowthGrowth
211.2%10/10

Earnings expanding 211.2% YoY

V5 strengths · Avg: 9.6/10
Market CapQuality
$691.65B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
64.2%10/10

Every $100 of equity generates 64 in profit

Profit MarginProfitability
50.8%10/10

Keeps 51 of every $100 in revenue as profit

Operating MarginProfitability
66.1%10/10

Strong operational efficiency at 66.1%

Free Cash FlowQuality
$6.14B8/10

Generating 6.1B in free cash flow

Areas to Watch

UPST4 concerns · Avg: 2.5/10
Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Profit MarginProfitability
4.7%3/10

4.7% margin — thin

P/E RatioValuation
51.8x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-138.82M2/10

Negative free cash flow — burning cash

V4 concerns · Avg: 4.0/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
19.9x4/10

Trading at 19.9x book value

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Comparative Analysis Report

WallStSmart Research

Bull Case : UPST

The strongest argument for UPST centers on Revenue Growth, EPS Growth. Revenue growth of 42.3% demonstrates continued momentum.

Bull Case : V

The strongest argument for V centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 50.8% and operating margin at 66.1%. Revenue growth of 14.4% demonstrates continued momentum.

Bear Case : UPST

The primary concerns for UPST are Return on Equity, Profit Margin, P/E Ratio. A P/E of 51.8x leaves little room for execution misses. Debt-to-equity of 2.54 is elevated, increasing financial risk.

Bear Case : V

The primary concerns for V are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

UPST profiles as a hypergrowth stock while V is a mature play — different risk/reward profiles.

UPST carries more volatility with a beta of 2.17 — expect wider price swings.

UPST is growing revenue faster at 42.3% — sustainability is the question.

V generates stronger free cash flow (6.1B), providing more financial flexibility.

Bottom Line

V scores higher overall (68/100 vs 53/100), backed by strong 50.8% margins and 14.4% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Upstart Holdings Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Upstart Holdings, Inc. operates a cloud-based artificial intelligence (AI) lending platform. The company is headquartered in San Mateo, California.

Visa Inc. Class A

FINANCIAL SERVICES · CREDIT SERVICES · USA

Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.

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