Comparative Analysis of OneMain and Upstart
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 57 minutes ago
0mins
Source: Fool
- OneMain's Steady Performance: OneMain's FY 2025 revenue reached nearly $6.2 billion, reflecting a 9.1% increase, with a net income of approximately $783 million and a net margin of 12.5%, indicating a stable recovery in the nonprime borrower market despite macroeconomic risks and competitive pressures.
- Upstart's Rapid Growth: Upstart's revenue surged nearly 59% in FY 2025 to about $1.1 billion, with a net income of roughly $53.6 million and a net margin close to 5.0%, marking a return to profitability after two years of losses, although its high customer concentration poses certain risks.
- Risk Profile Comparison: OneMain faces significant risks from adverse macroeconomic conditions, particularly regarding defaults among its nonprime borrower base, while Upstart relies heavily on a few key partners, and its AI models may encounter pricing errors during rapid economic shifts, adding uncertainty to its business.
- Valuation Differences: OneMain's forward P/E ratio stands at 7.8x, significantly lower than Upstart's 35.1x, highlighting its appeal to value-oriented investors, even as it experienced an uptick in delinquencies early in the year, while Upstart is projected to see a nearly 36% revenue increase in 2026, exceeding $1.4 billion.
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Analyst Views on OMF
Wall Street analysts forecast OMF stock price to rise
11 Analyst Rating
6 Buy
4 Hold
1 Sell
Moderate Buy
Current: 57.770
Low
64.00
Averages
72.20
High
80.00
Current: 57.770
Low
64.00
Averages
72.20
High
80.00
About OMF
OneMain Holdings, Inc. is a financial services holding company. The Company provides personal loan products; offers auto financing; offers credit cards; offers optional products; offers a customer-focused financial wellness program; services loans, and acquisitions and dispositions of assets and businesses. It provides origination, underwriting, and servicing of personal loans, primarily to nonprime customers. In addition, the Company offers two credit cards, BrightWay and BrightWay+, through a third-party bank partner. The Company offers optional credit insurance products, such as credit life insurance, which provides for payment to the lender of the finance receivable in the event of the borrower’s death; credit disability insurance, which provides scheduled monthly loan payments to the lender during a borrower’s disability due to illness or injury, and credit involuntary unemployment insurance, which provides scheduled monthly loan payments during involuntary unemployment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Comparative Analysis of OneMain and Upstart
- OneMain's Steady Performance: OneMain's FY 2025 revenue reached nearly $6.2 billion, reflecting a 9.1% increase, with a net income of approximately $783 million and a net margin of 12.5%, indicating a stable recovery in the nonprime borrower market despite macroeconomic risks and competitive pressures.
- Upstart's Rapid Growth: Upstart's revenue surged nearly 59% in FY 2025 to about $1.1 billion, with a net income of roughly $53.6 million and a net margin close to 5.0%, marking a return to profitability after two years of losses, although its high customer concentration poses certain risks.
- Risk Profile Comparison: OneMain faces significant risks from adverse macroeconomic conditions, particularly regarding defaults among its nonprime borrower base, while Upstart relies heavily on a few key partners, and its AI models may encounter pricing errors during rapid economic shifts, adding uncertainty to its business.
- Valuation Differences: OneMain's forward P/E ratio stands at 7.8x, significantly lower than Upstart's 35.1x, highlighting its appeal to value-oriented investors, even as it experienced an uptick in delinquencies early in the year, while Upstart is projected to see a nearly 36% revenue increase in 2026, exceeding $1.4 billion.
See More
Comparative Analysis of OneMain and Upstart in Lending Market
- Profitability Comparison: OneMain's revenue for FY 2025 reached nearly $6.2 billion, reflecting a 9.1% increase year-over-year, with a net income of approximately $783 million and a net margin of 12.5%, showcasing its stable profitability in the nonprime lending market.
- Growth Potential Analysis: Upstart's revenue surged nearly 59% in FY 2025 to about $1.1 billion, achieving a net income of roughly $53.6 million and a net margin close to 5%, indicating strong growth potential for its AI-driven lending platform in a rapidly expanding market.
- Risk Assessment: OneMain faces significant risks from adverse macroeconomic conditions, particularly impacting its nonprime borrower base, while also contending with intense competition from larger financial institutions, which may lead to increased compliance costs.
- Market Outlook: Upstart is projected to see a nearly 36% revenue increase in 2026, exceeding $1.4 billion, compared to OneMain's expected 10% growth, suggesting that Upstart may be more competitive in the future market.
See More
High Yield Opportunities in Financial Stocks
- High Yield Investment: Amidst the overall weakness in financial stocks, investors can achieve dividend yields of up to 12.3% by selecting certain regional banks, with an expected $500,000 investment generating $44,000 annually in dividend income, thus providing a stable cash flow for investors.
- Northwest Bank's Stability: Northwest Bancshares (NWBI) is known for its 5.7% dividend yield and robust lending practices; while it faces limited growth prospects, its merger with Penn Woods Bancorp is expected to enhance profitability and strengthen its competitive position in the market.
- Washington Trust's Returns: Washington Trust (WASH) experienced volatility in 2026, but despite missing Q1 estimates, it maintains a 7% dividend yield and shows improving profitability, indicating potential for future growth.
- Mechanics Bancorp's Rapid Growth: Mechanics Bancorp (MCHB) reintroduced dividends in 2025, currently boasting a 12.3% yield, with management projecting to pay out about 80% of net income as dividends, reflecting a strong commitment to shareholder returns.
See More
OneMain Reports Strong Q1 Results with Growth in Loans and Credit
- Revenue and Earnings Beat: OneMain's Q1 revenue reached $1.26 billion, reflecting a 6.6% year-on-year growth that met analyst expectations, while adjusted EPS of $1.95 surpassed the forecast of $1.86, indicating robust performance in personal loans and credit card sectors.
- Stable Credit Performance: The company has implemented disciplined underwriting and conservative credit practices, resulting in credit performance aligning with expectations despite an uncertain market environment, showcasing strong risk management capabilities.
- Customer Resilience Highlighted: CEO Douglas Shulman emphasized customer resilience, noting that despite rising oil prices, consumers have not shown significant financial distress, which reinforces the company's confidence in executing its 2026 financial plan.
- Future Growth Potential: Looking ahead, the company will focus on the pace of scaling its auto and credit card businesses, as well as the impact of AI and technology investments on operational efficiency and credit performance, demonstrating its commitment to sustained profitable growth.
See More
OneMain Holdings Reports Strong Q1 2026 Earnings with Capital Generation of $194 Million
- Capital Generation Performance: OneMain Holdings generated $194 million in capital during Q1 2026, showcasing the company's resilience and profitability in the current economic environment.
- Revenue and Receivables Growth: The adjusted EPS stood at $1.95, reflecting a 13% year-over-year increase, while total revenue and receivables both grew by 6% year-over-year, indicating sustained business expansion and strong market demand.
- Strong Credit Performance: The 30 to 89-day delinquency rate declined year-over-year, with net charge-offs at 8.4%, demonstrating effective credit management and risk control, which enhances investor confidence.
- Shareholder Return Strategy: The company repurchased 1.9 million shares for $105 million in Q1, with an annual dividend of $4.20 per share yielding 7%, reflecting a strong commitment to shareholders and an enhanced capital return strategy.
See More
OneMain Holdings Declares Quarterly Dividend of $1.05 per Share
- Quarterly Dividend Declaration: OneMain Holdings has declared a quarterly dividend of $1.05 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 7.15% reflects the company's attractiveness in the current market environment, potentially enhancing shareholder confidence and stabilizing the stock price.
- Financial Performance Beats Expectations: OneMain Holdings reported a non-GAAP EPS of $1.95, exceeding expectations by $0.09, with revenue reaching $1.6 billion, surpassing forecasts by $330 million, demonstrating the company's strong performance and growth potential in the market.
- Shareholder Return Strategy: The company's ongoing dividend payments and robust financial results indicate a commitment to creating value for shareholders, which may attract income-seeking investors and further boost market demand for its stock.
See More
Comparative Analysis of OneMain and Upstart
- OneMain's Steady Performance: OneMain's FY 2025 revenue reached nearly $6.2 billion, reflecting a 9.1% increase, with a net income of approximately $783 million and a net margin of 12.5%, indicating a stable recovery in the nonprime borrower market despite macroeconomic risks and competitive pressures.
- Upstart's Rapid Growth: Upstart's revenue surged nearly 59% in FY 2025 to about $1.1 billion, with a net income of roughly $53.6 million and a net margin close to 5.0%, marking a return to profitability after two years of losses, although its high customer concentration poses certain risks.
- Risk Profile Comparison: OneMain faces significant risks from adverse macroeconomic conditions, particularly regarding defaults among its nonprime borrower base, while Upstart relies heavily on a few key partners, and its AI models may encounter pricing errors during rapid economic shifts, adding uncertainty to its business.
- Valuation Differences: OneMain's forward P/E ratio stands at 7.8x, significantly lower than Upstart's 35.1x, highlighting its appeal to value-oriented investors, even as it experienced an uptick in delinquencies early in the year, while Upstart is projected to see a nearly 36% revenue increase in 2026, exceeding $1.4 billion.
See More
Comparative Analysis of OneMain and Upstart in Lending Market
- Profitability Comparison: OneMain's revenue for FY 2025 reached nearly $6.2 billion, reflecting a 9.1% increase year-over-year, with a net income of approximately $783 million and a net margin of 12.5%, showcasing its stable profitability in the nonprime lending market.
- Growth Potential Analysis: Upstart's revenue surged nearly 59% in FY 2025 to about $1.1 billion, achieving a net income of roughly $53.6 million and a net margin close to 5%, indicating strong growth potential for its AI-driven lending platform in a rapidly expanding market.
- Risk Assessment: OneMain faces significant risks from adverse macroeconomic conditions, particularly impacting its nonprime borrower base, while also contending with intense competition from larger financial institutions, which may lead to increased compliance costs.
- Market Outlook: Upstart is projected to see a nearly 36% revenue increase in 2026, exceeding $1.4 billion, compared to OneMain's expected 10% growth, suggesting that Upstart may be more competitive in the future market.
See More
High Yield Opportunities in Financial Stocks
- High Yield Investment: Amidst the overall weakness in financial stocks, investors can achieve dividend yields of up to 12.3% by selecting certain regional banks, with an expected $500,000 investment generating $44,000 annually in dividend income, thus providing a stable cash flow for investors.
- Northwest Bank's Stability: Northwest Bancshares (NWBI) is known for its 5.7% dividend yield and robust lending practices; while it faces limited growth prospects, its merger with Penn Woods Bancorp is expected to enhance profitability and strengthen its competitive position in the market.
- Washington Trust's Returns: Washington Trust (WASH) experienced volatility in 2026, but despite missing Q1 estimates, it maintains a 7% dividend yield and shows improving profitability, indicating potential for future growth.
- Mechanics Bancorp's Rapid Growth: Mechanics Bancorp (MCHB) reintroduced dividends in 2025, currently boasting a 12.3% yield, with management projecting to pay out about 80% of net income as dividends, reflecting a strong commitment to shareholder returns.
See More
OneMain Reports Strong Q1 Results with Growth in Loans and Credit
- Revenue and Earnings Beat: OneMain's Q1 revenue reached $1.26 billion, reflecting a 6.6% year-on-year growth that met analyst expectations, while adjusted EPS of $1.95 surpassed the forecast of $1.86, indicating robust performance in personal loans and credit card sectors.
- Stable Credit Performance: The company has implemented disciplined underwriting and conservative credit practices, resulting in credit performance aligning with expectations despite an uncertain market environment, showcasing strong risk management capabilities.
- Customer Resilience Highlighted: CEO Douglas Shulman emphasized customer resilience, noting that despite rising oil prices, consumers have not shown significant financial distress, which reinforces the company's confidence in executing its 2026 financial plan.
- Future Growth Potential: Looking ahead, the company will focus on the pace of scaling its auto and credit card businesses, as well as the impact of AI and technology investments on operational efficiency and credit performance, demonstrating its commitment to sustained profitable growth.
See More
OneMain Holdings Reports Strong Q1 2026 Earnings with Capital Generation of $194 Million
- Capital Generation Performance: OneMain Holdings generated $194 million in capital during Q1 2026, showcasing the company's resilience and profitability in the current economic environment.
- Revenue and Receivables Growth: The adjusted EPS stood at $1.95, reflecting a 13% year-over-year increase, while total revenue and receivables both grew by 6% year-over-year, indicating sustained business expansion and strong market demand.
- Strong Credit Performance: The 30 to 89-day delinquency rate declined year-over-year, with net charge-offs at 8.4%, demonstrating effective credit management and risk control, which enhances investor confidence.
- Shareholder Return Strategy: The company repurchased 1.9 million shares for $105 million in Q1, with an annual dividend of $4.20 per share yielding 7%, reflecting a strong commitment to shareholders and an enhanced capital return strategy.
See More
OneMain Holdings Declares Quarterly Dividend of $1.05 per Share
- Quarterly Dividend Declaration: OneMain Holdings has declared a quarterly dividend of $1.05 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 7.15% reflects the company's attractiveness in the current market environment, potentially enhancing shareholder confidence and stabilizing the stock price.
- Financial Performance Beats Expectations: OneMain Holdings reported a non-GAAP EPS of $1.95, exceeding expectations by $0.09, with revenue reaching $1.6 billion, surpassing forecasts by $330 million, demonstrating the company's strong performance and growth potential in the market.
- Shareholder Return Strategy: The company's ongoing dividend payments and robust financial results indicate a commitment to creating value for shareholders, which may attract income-seeking investors and further boost market demand for its stock.
See More
