QFIN vs UPST

For growth investors, Upstart Holdings, Inc.

(UPST) is the stronger pick with 58. 9% revenue growth year-over-year, versus 5. 4% for Qfin Holdings, Inc. (QFIN). Qfin Holdings, Inc. (QFIN) offers the better valuation at 2. 2x trailing P/E (0. 5x forward), making it the more compelling value choice. Analysts rate Qfin Holdings, Inc. (QFIN) a "Buy" — based on 4 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, Qfin Holdings, Inc.

(QFIN) is the cheapest at 2. 2x versus Upstart Holdings, Inc. at 63. 7x. On forward P/E, Qfin Holdings, Inc. is actually cheaper at 0. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Qfin Holdings, Inc. wins at 0. 02x versus Upstart Holdings, Inc. 's 1. 02x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Qfin Holdings, Inc.

(QFIN) delivered a total return of -16. 4%, compared to -68. 8% for Upstart Holdings, Inc. (UPST). Over 10 years, the gap is even starker: QFIN returned +16. 1% 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), Qfin Holdings, Inc.

(QFIN) is the lower-risk stock at 1. 20β versus Upstart Holdings, Inc. 's 2. 96β — meaning UPST is approximately 147% more volatile than QFIN relative to the S&P 500. On balance sheet safety, Qfin Holdings, Inc. (QFIN) carries a lower debt/equity ratio of 7% 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 5. 4% for Qfin Holdings, Inc. (QFIN). On earnings-per-share growth, the picture is similar: Upstart Holdings, Inc. grew EPS 131. 3% year-over-year, compared to 60. 7% for Qfin Holdings, 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.

Qfin Holdings, Inc.

(QFIN) is the more profitable company, earning 36. 5% net margin versus 5. 0% for Upstart Holdings, Inc. — meaning it keeps 36. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: QFIN leads at 43. 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, Qfin Holdings, Inc. (QFIN) is the more undervalued stock at a PEG of 0. 02x versus Upstart Holdings, Inc. 's 1. 02x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Qfin Holdings, Inc. (QFIN) trades at 0. 5x forward P/E versus 14. 7x for Upstart Holdings, Inc. — 14. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for QFIN: 104. 7% to $28. 15.

In this comparison, QFIN (8.

9% yield) pays a dividend. UPST does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Qfin Holdings, Inc.

(QFIN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 20), 8. 9% yield). 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 (QFIN: +16. 1%, 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: QFIN is a small-cap deep-value stock; UPST is a small-cap high-growth stock. QFIN pays a dividend while UPST does 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.