Comparing Capital One Financial (NYSE:COF) and SoFi Technologies (NASDAQ:SOFI)

Capital One Financial (NYSE:COF) and SoFi Technologies (NASDAQ:SOFI) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

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%

Institutional and Insider 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 is poised for long-term growth.

Valuation and Earnings

This table compares Capital One Financial and SoFi Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital One Financial	$69.25 billion	1.81	$2.45 billion	$16.94	12.09
SoFi Technologies	$3.61 billion	5.99	$481.32 million	$0.55	30.47

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.

Risk & Volatility

Capital One Financial has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, SoFi Technologies has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Capital One Financial and SoFi Technologies, as reported by MarketBeat.

	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 presently has a consensus target price of $256.77, indicating a potential upside of 25.33%. SoFi Technologies has a consensus target price of $21.23, indicating a potential upside of 26.64%. Given SoFi Technologies’ higher probable upside, analysts clearly believe SoFi Technologies is more favorable than Capital One Financial.

Summary

Capital One Financial beats SoFi Technologies on 8 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.