Upstart vs. Pagaya Technologies: Which Financial Stock Is a Better Buy in 2026?

As lending shifts toward machine learning, Upstart (NASDAQ:UPST) and Pagaya Technologies (NASDAQ:PGY) are racing to replace traditional credit scores. Both companies offer unique paths for investors seeking exposure to the next generation of credit.These companies are frequently compared because they both use sophisticated algorithms to help lenders assess borrower risk more accurately than a standard FICO score. While they operate in the same general ecosystem, their business models and financial health vary significantly, making a side-by-side comparison essential for any long-term investor.Upstart operates an AI-based marketplace that connects consumers with more than 100 partners among financial services for various loan products. Its expansion includes home equity lines of credit and small-dollar relief loans, while its top three lending partners accounted for nearly 61% of total revenue in 2025. Customer concentration like this adds a layer of risk to the business, as the platform's success relies on maintaining relationships with a limited number of high-volume institutions.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool