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Börse Express – 2 growth stocks that are more of a buy than Dogecoin




Returns in the stock markets have been stable and strong this year, with the benchmark index S&P 500 increased by about 21%. That is much better than the around 14% that the index has achieved on average over the past ten years. And we are still a long way from the end of the year.

But these returns are nothing compared to the profits cryptocurrencies made in 2021. One of the top performers this year Dogecoin, a token that has become popular in a segment of retail investors – it’s up more than 6,000% this year.

However, anyone who has now entered cannot look forward to these immense returns. Around a week ago, Dogecoin fell nearly 60% from its all-time highs in the spring. One of the reasons for the steep decline is the lack of utility from Dogecoin. In contrast to the more widely used tokens Bitcoin and Ethereum Dogecoin is not an efficient means of carrying out transactions. The founder of Dogecoin invented it as a joke. He became famous through viral advertising on social media. There is no concrete benefit.

If you are considering buying Dogecoin now, you should bet on high-growth stocks instead. Owning a portfolio of real companies with real sources of income can be far more rewarding in the long run. Here are two strong stocks to help make that decision easier.

Upstart Holdings

Upstart Holdings (NYSE: AI) uses artificial intelligence to screen borrowers based on unusual criteria and automate the approval process.

The company uses its technology to lend to banks, which in turn pay Upstart a fee so the company is not exposed to credit risk. Upstart recently expanded its offering to auto loans, the largest credit market the company has ever operated. As a result, growth exploded.

identification number

Q2 2020

Q2 2021

Growth

sales

$ 17.4 million

$ 193.9 million

1,018%

Loans granted

$ 164 million

$ 2.795 billion

1,604%

Source: Company filings

Upstart has so far raised its sales forecast for the full year 2021 twice. The company now expects sales of $ 750 million. If it lives up to this forecast, that means a year-on-year growth of 221%.

But it gets even better for investors. In April, Upstart acquired Prodigy, a dealership sales software company that contributed $ 1 billion in vehicle sales in the second quarter alone. Upstart and Prodigy are now working on an integration that will allow Upstart to fund some of these sales, which could add to its automotive ambitions.

Upstart is already profitable, which is a rare trait in high-growth tech companies. Analysts expect the company to post earnings per share of $ 1.33 in 2021. So at 178 times that, the stock doesn’t look cheap. That’s the growth rate investors are paying for, however, and in three to five years, today’s price could look like a bargain in retrospect.

Bill.com

A second high growth stock to consider in lieu of Dogecoin is Bill.com (WKN: A2PWWA), which operates a cloud-based payment management platform for small and medium-sized businesses. The company created a digital inbox that its customers can use to manage the flow of invoices, so companies can pay bills quickly and from one place.




Bill.com believes the US economy will continue to recover, which is beneficial for small businesses. And in its earnings announcement for the fourth quarter (which ended June 30), the company made explosive projections for fiscal 2022.

identification number

Fiscal year 2020

Fiscal year 2021

Fiscal year 2022 (guidance)

Expected 2 year CAGR

sales

$ 158 million

$ 238 million

$ 478 million

74%

Source: Company filings, CAGR = Compound Annual Growth Rate

Bill.com generates the majority of its revenue from software subscriptions and transaction fees. The latter grew twice as fast as core revenue in the quarter that ended June 30 – 204% to 100%. The reason was the $ 42 billion in payments processed.

On June 1, the company completed the acquisition of Divvy, a business expense management platform that also offers credit products, for $ 2.5 billion. The acquisition gives Bill.com a more holistic range of business solutions.

While Bill.com is not yet profitable, it is likely to approach breakeven in fiscal 2022. With a gross margin in excess of 74%, the company can afford to invest in growth at the expense of short-term gains. It is clear that sales growth has not yet peaked, but when it does, the company will be able to cut spending in order to generate profits for investors.

The stock trades at more than 110 times sales in fiscal 2021, which is extremely high. However, this multiple is halved when compared with the forecast for fiscal year 2022. Much like Upstart, it’s a high-growth opportunity at a price that may seem cheap in retrospect to patient investors who buy now.

Most importantly, Bill.com has useful payment solutions for businesses. And that’s exactly what Dogecoin doesn’t do.

The article 2 Growth Stocks That Are More of a Buy than Dogecoin first appeared on The Motley Fool Germany.

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Anthony di Pizio does not own any of the listed BioNtech stocks. The Motley Fool owns shares of and recommends ill.com Holdings, Inc., Bitcoin, Ethereum, and Upstart Holdings, Inc. This article appeared on 2/9/2021 on Fool.com and has been translated for our German readers.

Motley Fool Germany 2021


Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.
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