Katapult (NASDAQ:KPLT – Get Free Report) and SoFi Technologies (NASDAQ:SOFI – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Volatility and Risk
Katapult has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, SoFi Technologies has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500.
Profitability
This table compares Katapult and SoFi Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Katapult | 3.60% | -26.41% | 10.86% |
| SoFi Technologies | 14.78% | 6.22% | 1.22% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Katapult | $291.76 million | 0.12 | $1.37 million | $1.37 | 4.99 |
| SoFi Technologies | $3.61 billion | 6.54 | $481.32 million | $0.48 | 38.15 |
SoFi Technologies has higher revenue and earnings than Katapult. Katapult is trading at a lower price-to-earnings ratio than SoFi Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Katapult and SoFi Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Katapult | 1 | 0 | 0 | 0 | 1.00 |
| SoFi Technologies | 3 | 10 | 8 | 0 | 2.24 |
SoFi Technologies has a consensus price target of $22.42, indicating a potential upside of 22.43%. Given SoFi Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe SoFi Technologies is more favorable than Katapult.
Insider and Institutional Ownership
26.8% of Katapult shares are owned by institutional investors. Comparatively, 38.4% of SoFi Technologies shares are owned by institutional investors. 8.0% of Katapult shares are owned by company insiders. Comparatively, 2.5% of SoFi Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
SoFi Technologies beats Katapult on 11 of the 14 factors compared between the two stocks.
About Katapult
Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.
About SoFi Technologies
SoFi Technologies, Inc. provides various financial services in the United States, Latin America, and Canada. It operates through three segments: Lending, Technology Platform, and Financial Services. The company offers lending and financial services and products that allows its members to borrow, save, spend, invest, and protect money. It offers personal loans, student loans, home loans, and related services. The company also operates Galileo, a technology platform that offers services to financial and non-financial institution; and Technisys, a cloud-native digital and core banking platform with financial services customers. In addition, it provides SoFi Money offers checking and savings accounts, debit cards, and cash management products; and SoFi Invest, a mobile-first investment platform that provides access to trading and advisory solutions, such as investing and robo-advisory. Further, the company offers SoFi Credit Card that provides cash backs on every purchase; Sofi Relay, a personal finance management product that allows to track all of their financial accounts comprising credit score and spending behaviors; SoFi Protect, which offers insurance product; SoFi Travel, an application that manages travel search and booking experience; SoFi At Work provides financial benefits to employees, including student loan payments made on their employees' behalf; Lantern Credit, a financial services marketplace platform for seeking alternative products and provide product comparisons; and other lending as a service that offers pre-qualified borrower referrals and sells loans to third-party partner. The company was founded in 2011 and is based in San Francisco, California.
Receive News & Ratings for Katapult Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Katapult and related companies with MarketBeat.com's FREE daily email newsletter.
