LC vs SOFI vs UPST vs PFSI vs ATLC

For growth investors, PennyMac Financial Services, Inc.

(PFSI) is the stronger pick with 173. 8% revenue growth year-over-year, versus 15. 0% for LendingClub Corporation (LC). PennyMac Financial Services, Inc. (PFSI) offers the better valuation at 9. 5x trailing P/E (7. 2x 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, PennyMac Financial Services, Inc.

(PFSI) is the cheapest at 9. 5x versus Upstart Holdings, Inc. at 64. 4x. On forward P/E, PennyMac Financial Services, Inc. is actually cheaper at 7. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Atlanticus Holdings Corporation wins at 1. 01x versus Upstart Holdings, Inc. 's 1. 02x — a reasonable growth-adjusted valuation.

Over the past 5 years, Atlanticus Holdings Corporation (ATLC) delivered a total return of +128.

9%, compared to -69. 8% for Upstart Holdings, Inc. (UPST). Over 10 years, the gap is even starker: ATLC returned +25. 1% 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), PennyMac Financial Services, Inc.

(PFSI) is the lower-risk stock at 0. 93β versus Upstart Holdings, Inc. 's 2. 96β — meaning UPST is approximately 218% more volatile than PFSI relative to the S&P 500. On balance sheet safety, LendingClub Corporation (LC) carries a lower debt/equity ratio of 1% versus 11% for Atlanticus Holdings Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), PennyMac Financial Services, Inc.

(PFSI) is pulling ahead at 173. 8% versus 15. 0% for LendingClub Corporation (LC). On earnings-per-share growth, the picture is similar: LendingClub Corporation grew EPS 155. 6% 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.

Atlanticus Holdings Corporation (ATLC) is the more profitable company, earning 17.

3% net margin versus 5. 0% for Upstart Holdings, Inc. — meaning it keeps 17. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PFSI leads at 34. 6% 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, Atlanticus Holdings Corporation (ATLC) is the more undervalued stock at a PEG of 1. 01x versus Upstart Holdings, Inc. 's 1. 02x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, PennyMac Financial Services, Inc. (PFSI) trades at 7. 2x forward P/E versus 26. 5x for SoFi Technologies, Inc. — 19. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PFSI: 61. 3% to $143. 00.

In this comparison, PFSI (1.

3% yield), ATLC (0. 8% yield) pay a dividend. LC, SOFI, UPST do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, PennyMac Financial Services, Inc.

(PFSI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 93), 1. 3% yield, +603. 4% 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 (PFSI: +603. 4%, 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; SOFI is a mid-cap high-growth stock; UPST is a small-cap high-growth stock; PFSI is a small-cap high-growth stock; ATLC is a small-cap high-growth stock. PFSI, ATLC pay a dividend while LC, 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.