HOOD vs SOFI vs SCHW vs UPST

For growth investors, Upstart Holdings, Inc.

(UPST) is the stronger pick with 58. 9% revenue growth year-over-year, versus 1. 9% for The Charles Schwab Corporation (SCHW). The Charles Schwab Corporation (SCHW) offers the better valuation at 29. 9x trailing P/E (14. 9x forward), making it the more compelling value choice. Analysts rate Robinhood Markets, Inc. (HOOD) a "Buy" — based on 25 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, The Charles Schwab Corporation (SCHW) is the cheapest at 29.

9x versus Upstart Holdings, Inc. at 64. 4x. On forward P/E, Upstart Holdings, Inc. is actually cheaper at 14. 7x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Robinhood Markets, Inc. wins at 0. 16x versus The Charles Schwab Corporation's 6. 49x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Robinhood Markets, Inc.

(HOOD) delivered a total return of +119. 1%, compared to -69. 8% for Upstart Holdings, Inc. (UPST). Over 10 years, the gap is even starker: SCHW returned +255. 2% versus UPST's -1. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Charles Schwab Corporation (SCHW) is the lower-risk stock at 0.

72β versus Robinhood Markets, Inc. 's 3. 05β — meaning HOOD is approximately 322% more volatile than SCHW relative to the S&P 500. On balance sheet safety, SoFi Technologies, Inc. (SOFI) carries a lower debt/equity ratio of 17% versus 2% for Upstart Holdings, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Upstart Holdings, Inc.

(UPST) is pulling ahead at 58. 9% versus 1. 9% for The Charles Schwab Corporation (SCHW). On earnings-per-share growth, the picture is similar: Upstart Holdings, Inc. grew EPS 131. 3% year-over-year, compared to 0. 0% for SoFi Technologies, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Robinhood Markets, Inc.

(HOOD) is the more profitable company, earning 42. 1% net margin versus 5. 0% for Upstart Holdings, Inc. — meaning it keeps 42. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HOOD leads at 46. 8% versus 5. 1% for UPST. At the gross margin level — before operating expenses — UPST leads at 95. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Robinhood Markets, Inc. (HOOD) is the more undervalued stock at a PEG of 0. 16x versus The Charles Schwab Corporation's 6. 49x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Upstart Holdings, Inc. (UPST) trades at 14. 7x forward P/E versus 40. 5x for Robinhood Markets, Inc. — 25. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UPST: 55. 8% to $45. 17.

In this comparison, SCHW (1.

4% yield) pays a dividend. HOOD, SOFI, UPST do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, The Charles Schwab Corporation (SCHW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

72), 1. 4% yield, +255. 2% 10Y return). Upstart Holdings, Inc. (UPST) carries a higher beta of 2. 96 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (SCHW: +255. 2%, UPST: -1. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: HOOD is a mid-cap high-growth stock; SOFI is a mid-cap high-growth stock; SCHW is a mid-cap quality compounder stock; UPST is a small-cap high-growth stock. SCHW pays a dividend while HOOD, SOFI, UPST do not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.