Capital One Financial (NYSE:COF – Get Free Report) and SoFi Technologies (NASDAQ:SOFI – Get Free Report) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
Insider and Institutional Ownership
89.8% of Capital One Financial shares are owned by institutional investors. Comparatively, 38.4% of SoFi Technologies shares are owned by institutional investors. 0.8% of Capital One Financial 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Capital One Financial and SoFi Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Capital One Financial | 13.70% | 11.64% | 1.94% |
| SoFi Technologies | 15.60% | 6.89% | 1.35% |
Analyst Ratings
This is a breakdown of current ratings and target prices for Capital One Financial and SoFi Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Capital One Financial | 0 | 4 | 20 | 0 | 2.83 |
| SoFi Technologies | 3 | 10 | 10 | 1 | 2.38 |
Capital One Financial currently has a consensus price target of $256.77, suggesting a potential upside of 23.03%. SoFi Technologies has a consensus price target of $21.23, suggesting a potential upside of 20.53%. Given Capital One Financial’s stronger consensus rating and higher possible upside, equities analysts clearly believe Capital One Financial is more favorable than SoFi Technologies.
Volatility & Risk
Capital One Financial has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, SoFi Technologies has a beta of 2.33, indicating that its stock price is 133% more volatile than the S&P 500.
Earnings and Valuation
This table compares Capital One Financial and SoFi Technologies”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Capital One Financial | $62.76 billion | 2.04 | $2.45 billion | $16.94 | 12.32 |
| SoFi Technologies | $3.61 billion | 6.29 | $481.32 million | $0.48 | 36.69 |
Capital One Financial has higher revenue and earnings than SoFi Technologies. Capital One Financial is trading at a lower price-to-earnings ratio than SoFi Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
Capital One Financial beats SoFi Technologies on 9 of the 15 factors compared between the two stocks.
About Capital One Financial
Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.
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.
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