Nelnet vs Upstart

This page compares Nelnet Inc and Upstart Holdings, Inc across business models, financial performance, and market context, offering a clear, neutral overview for readers. It explains how each company operates, the sectors they serve, and the factors shaping their outlook, without asserting recommendations. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

NNI

Metric

UPST

$4.68B

Market Cap

$4.34B

6.19%

Potential Profit

30.01%

Hold

Analyst Rating

Buy

Investment Analysis

Nelnet

NNI

Pros

Nelnet maintains a diversified business model spanning loan servicing, education technology, and payment processing, reducing reliance on any single sector.
The company has demonstrated consistent profitability and a strong balance sheet, supporting its ability to weather economic downturns.
Nelnet pays a regular dividend, providing income to investors in addition to potential capital appreciation.

Considerations

Nelnet's loan servicing segment is exposed to regulatory changes and shifts in student loan policies, which could impact future earnings.
Growth in the education technology and payment processing segments may be limited by intense competition from larger players.
The company's stock has relatively low analyst coverage, which may reduce market liquidity and price transparency.

Upstart

UPST

Pros

Upstart's AI-driven lending platform enables rapid innovation and expansion into new credit segments, differentiating it from traditional lenders.
Recent financial reports show strong revenue growth and improving net losses, indicating progress toward profitability.
Analysts project significant earnings and revenue growth over the next year, reflecting optimism about the company's business model.

Considerations

Upstart has a negative return on equity, suggesting ongoing challenges in generating shareholder value from its assets.
The stock is highly volatile, with a beta above 2, making it sensitive to broader market swings and investor sentiment.
Upstart does not pay a dividend, offering no income stream to investors during periods of share price stagnation or decline.

About The Companies

Nelnet (NNI)

Nelnet is a diversified American company with a significant footprint in financial services and education technology. While it started with a focus on student loan servicing, it has expanded considerably. Today, its business is split into several key areas: servicing student and consumer loans, providing technology and payment processing services for schools and businesses, managing a portfolio of loan assets, and operating its own online bank. This multi-faceted model means Nelnet isn't reliant on just one stream of income. For investors, understanding these different segments—from loan systems and EdTech to asset management and banking—is key to appreciating the company's overall strategy and market position. It aims to provide a broad range of services that support customers throughout their educational and financial journeys.

Upstart (UPST)

Upstart Holdings (UPST) operates a technology-driven lending platform that connects borrowers with banks and also offers loans it holds on balance sheet. The company uses machine-learning models to assess creditworthiness and prize underwriting signals beyond traditional FICO scores, aiming to increase approval rates while managing default risk. Revenue derives from origination and servicing fees, interest income on held loans and platform fees from bank partners. Investors should note sensitivity to credit cycles, model performance and data drift, funding costs, and potential regulatory scrutiny around algorithmic lending. Upstart has experienced periods of rapid growth and volatility; future profit depends on charge-offs, loan volumes and funding conditions. This is general educational information, not personalised advice — values can fall as well as rise and past performance is not a guide to the future.

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Nelnet vs Upstart

Comparison Snapshot

Investment Analysis

Nelnet

Pros

Considerations

Upstart

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy NNI or UPST in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Nelnet vs Lazard

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Frequently asked questions

What is the basic difference between Nelnet and Upstart in terms of business models?

How does diversification affect risk for these two stocks?

Why might Nelnet’s dividend be relevant to an investor?

What do the profitability and balance sheet aspects suggest about Upstart’s investment profile?

How should one view analyst coverage and liquidity for these stocks?

What does the term ‘volatility’ mean for Upstart in practical terms?

How do regulatory and policy changes affect Nelnet and Upstart differently?

In what market conditions might each stock perform better or worse?

What should a beginner look for when comparing these stocks side by side?

Is it important to understand the pros and cons list provided for each stock?

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Educational disclaimer: Do these FAQs constitute financial advice?

Comparison Snapshot

About The Companies