LC vs OMF vs SLM vs UPST

For growth investors, Upstart Holdings, Inc.

(UPST) is the stronger pick with 58. 9% revenue growth year-over-year, versus 4. 1% for SLM Corporation (SLM). SLM Corporation (SLM) offers the better valuation at 6. 5x trailing P/E (7. 3x forward), making it the more compelling value choice. Analysts rate LendingClub Corporation (LC) a "Buy" — based on 29 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, SLM Corporation (SLM) is the cheapest at 6.

5x versus Upstart Holdings, Inc. at 64. 4x. On forward P/E, SLM Corporation is actually cheaper at 7. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: SLM Corporation wins at 0. 81x versus OneMain Holdings, Inc. 's 1. 92x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, OneMain Holdings, Inc.

(OMF) delivered a total return of +36. 4%, compared to -69. 8% for Upstart Holdings, Inc. (UPST). Over 10 years, the gap is even starker: SLM returned +284. 8% versus LC's -27. 7%. 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), SLM Corporation (SLM) is the lower-risk stock at 1.

13β versus Upstart Holdings, Inc. 's 2. 96β — meaning UPST is approximately 161% more volatile than SLM relative to the S&P 500. On balance sheet safety, LendingClub Corporation (LC) carries a lower debt/equity ratio of 1% versus 7% for OneMain 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 4. 1% for SLM Corporation (SLM). On earnings-per-share growth, the picture is similar: LendingClub Corporation grew EPS 155. 6% year-over-year, compared to 29. 1% for SLM Corporation. 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.

SLM Corporation (SLM) is the more profitable company, earning 24.

0% net margin versus 5. 0% for Upstart Holdings, Inc. — meaning it keeps 24. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SLM leads at 31. 9% 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, SLM Corporation (SLM) is the more undervalued stock at a PEG of 0. 81x versus OneMain Holdings, Inc. 's 1. 92x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, SLM Corporation (SLM) trades at 7. 3x forward P/E versus 14. 7x for Upstart Holdings, Inc. — 7. 4x 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, SLM (14.

9% yield), OMF (4. 7% yield) pay a dividend. LC, UPST do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, SLM Corporation (SLM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

13), 14. 9% yield, +284. 8% 10Y return). LendingClub Corporation (LC) carries a higher beta of 2. 36 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (SLM: +284. 8%, LC: -27. 7%), 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: LC is a small-cap deep-value stock; OMF is a small-cap deep-value stock; SLM is a small-cap deep-value stock; UPST is a small-cap high-growth stock. OMF, SLM pay a dividend while LC, 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.