SBI (OTCMKTS:SBHGF – Get Free Report) and SoFi Technologies (NASDAQ:SOFI – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Risk & Volatility
SBI has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, SoFi Technologies has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.
Insider and Institutional Ownership
38.4% of SoFi Technologies shares are owned by institutional investors. 2.6% 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.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SBI | $8.39 billion | 1.06 | $601.98 million | $2.07 | 14.25 |
| SoFi Technologies | $2.67 billion | 6.83 | $498.67 million | $0.37 | 45.49 |
SBI has higher revenue and earnings than SoFi Technologies. SBI is trading at a lower price-to-earnings ratio than SoFi Technologies, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SBI and SoFi Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SBI | 7.24% | 5.09% | 0.35% |
| SoFi Technologies | 18.64% | 3.82% | 0.69% |
Analyst Ratings
This is a breakdown of recent recommendations for SBI and SoFi Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SBI | 0 | 0 | 0 | 1 | 4.00 |
| SoFi Technologies | 4 | 6 | 5 | 0 | 2.07 |
SoFi Technologies has a consensus target price of $12.50, indicating a potential downside of 25.73%. Given SoFi Technologies’ higher probable upside, analysts clearly believe SoFi Technologies is more favorable than SBI.
Summary
SoFi Technologies beats SBI on 9 of the 15 factors compared between the two stocks.
About SBI
SBI Holdings, Inc. engages in the online securities and investment businesses. It operates through five business segments: Financial Services Business, Asset Management Business, Investment Business, Crypto-Asset Business, and Non-financial Business segments. The Financial Services Business segment consists of a range of finance-related business, including securities brokerage business; banking services business; and life, property, and casualty insurance business. The Asset Management Business segment includes setting, solicitation, and management of investment trust; investment advice; and financial products information. The Investment Business segment includes fund management and investment in Internet technology, fintech, blockchain, finance, and biotechnology-related venture companies; private equity; and funds management businesses. The Crypto-asset Business segment provides crypto-asset exchange and trading services. The Non-Financial Business segment consists of biotechnology; development and distribution of pharmaceutical products, health foods, and cosmetics with 5-aminolevulinic acid; research and development of antibody drugs and nucleic acid medicine in the field of cancer and immunology; the digitization of medical and health information; provision of solutions and services that promote the use of medical big data, medical finance; business working on advanced fields related to Web 3.0; and renewable energy business. The company is also involved in the real estate secured loans, online mobile game, and e-sports related businesses. In addition, it operates and develops cybersecurity systems; exports used cars; offers back-office support services; and develops, operates, manages, and invests in real estate properties. The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan.
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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