Analyzing SoFi Technologies (SOFI) & Its Rivals

SoFi Technologies (NASDAQ:SOFIGet Rating) is one of 71 publicly-traded companies in the “Nondepository credit institutions” industry, but how does it contrast to its competitors? We will compare SoFi Technologies to similar companies based on the strength of its dividends, valuation, earnings, risk, analyst recommendations, institutional ownership and profitability.

Insider & Institutional Ownership

56.5% of SoFi Technologies shares are held by institutional investors. Comparatively, 52.4% of shares of all “Nondepository credit institutions” companies are held by institutional investors. 35.1% of SoFi Technologies shares are held by insiders. Comparatively, 16.4% of shares of all “Nondepository credit institutions” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares SoFi Technologies and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SoFi Technologies -36.32% -9.24% -4.49%
SoFi Technologies Competitors 1.81% 5.06% 4.72%

Volatility and Risk

SoFi Technologies has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, SoFi Technologies’ competitors have a beta of 8.63, suggesting that their average share price is 763% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for SoFi Technologies and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SoFi Technologies 0 5 7 0 2.58
SoFi Technologies Competitors 435 1664 1896 83 2.40

SoFi Technologies presently has a consensus price target of $14.04, suggesting a potential upside of 93.10%. As a group, “Nondepository credit institutions” companies have a potential upside of 88.39%. Given SoFi Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe SoFi Technologies is more favorable than its competitors.

Earnings & Valuation

This table compares SoFi Technologies and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
SoFi Technologies $984.87 million -$483.94 million -8.87
SoFi Technologies Competitors $4.26 billion $795.25 million 8.20

SoFi Technologies’ competitors have higher revenue and earnings than SoFi Technologies. SoFi Technologies is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

SoFi Technologies competitors beat SoFi Technologies on 8 of the 13 factors compared.

About SoFi Technologies (Get Rating)

SoFi Technologies, Inc. provides digital financial services. It operates through three segments: Lending, Technology Platform, and Financial Services. The company's lending and financial services and products allows its members to borrow, save, spend, invest, and protect their money. It offers student loans; personal loans for debt consolidation and home improvement projects; and home loans. The company also provides cash management, investment, and technology services. In addition, it operates Galileo, a technology platform that offers services to financial and non-financial institutions; and Apex, a technology enabled platform that provides investment custody and clearing brokerage services, as well as Technisys, a cloud-based digital multi-product core banking platform. The company was founded in 2011 and is headquartered in San Francisco, California.

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