Radian vs Upstart

This page compares Radian and Upstart, examining their business models, financial performance indicators, and the market context in which they operate. It presents neutral, accessible information to help readers understand how each company positions itself, the services they offer, and the broader industry environment. Educational content, not financial advice.

This page compares Radian and Upstart, examining their business models, financial performance indicators, and the market context in which they operate. It presents neutral, accessible information to h...

Comparison Snapshot

Key Financial Metrics

RDN

Metric

UPST

$4.51B

Market Cap

$4.47B

18.51%

Potential Profit

32.57%

Hold

Analyst Rating

Buy

Investment Analysis

Radian

RDN

Pros

Radian Group has demonstrated consistent profitability with a net profit margin above 45% in recent quarters.
The company maintains a strong balance sheet with a low debt-to-equity ratio, supporting financial stability.
Radian offers a competitive dividend yield above 3%, with a history of regular payouts to shareholders.

Considerations

Radian's business is highly sensitive to the US housing market, exposing it to cyclical downturns and regulatory changes.
Revenue growth has been modest, with only single-digit percentage increases in recent years.
Analyst consensus is a 'hold' rating, indicating limited near-term upside potential.

Upstart

UPST

Pros

Upstart's AI lending platform has achieved rapid revenue growth, with a year-on-year increase of over 20% in 2024.
The company operates with a gross margin near 100%, reflecting a scalable and asset-light business model.
Upstart has generated positive free cash flow, showing improved operational efficiency despite net losses.

Considerations

Upstart remains unprofitable, reporting a net loss in 2024 and negative net margins.
The company's valuation is high relative to earnings, with a negative PE ratio and elevated price-to-sales multiple.
Upstart's performance is closely tied to credit market conditions and regulatory scrutiny, increasing volatility risk.

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About The Companies

Radian (RDN)

Radian Group Inc. (RDN) is a US-based mortgage insurance and real-estate services firm that underwrites mortgage default risk and offers related risk-management solutions. Investors should know that Radian’s earnings come from premium income, investment returns on capital and the company’s ability to manage claims and reserves. The business tends to benefit from stable or rising home prices and strong employment, which reduce claim rates, while a downturn in housing or weakening borrower credit can raise losses. Radian is also sensitive to interest-rate moves because they influence mortgage origination and refinancing activity. Capitalisation and regulatory capital requirements affect how much new business the group can write and how it returns capital to shareholders. With a market capitalisation of about $4.6bn, Radian sits in the mid‑cap financial space; it may appeal to investors seeking exposure to the mortgage finance cycle, but suitability depends on risk tolerance, time horizon and portfolio context. This is general information, not personalised financial advice.

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.

Which Baskets Do They Appear In?

The Great Mortgage Privatization

The planned IPOs for mortgage giants Fannie Mae and Freddie Mac signal a historic shift toward privatization in the U.S. housing market. This move stands to benefit not only the investment banks managing the deal but also a wider ecosystem of mortgage lenders and insurers.

Published: August 11, 2025

Explore Basket

Which Baskets Do They Appear In?

The Great Mortgage Privatization

The planned IPOs for mortgage giants Fannie Mae and Freddie Mac signal a historic shift toward privatization in the U.S. housing market. This move stands to benefit not only the investment banks managing the deal but also a wider ecosystem of mortgage lenders and insurers.

Published: August 11, 2025

Explore Basket

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Comparison Snapshot