American Express (NYSE:AXP – Get Rating) and SoFi Technologies (NASDAQ:SOFI – Get Rating) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Valuation & Earnings
This table compares American Express and SoFi Technologies’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Express | $52.86 billion | 2.15 | $7.51 billion | $9.51 | 16.08 |
| SoFi Technologies | $1.57 billion | 2.93 | -$320.41 million | ($0.31) | -15.90 |
American Express has higher revenue and earnings than SoFi Technologies. SoFi Technologies is trading at a lower price-to-earnings ratio than American Express, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
Analyst Recommendations
This is a summary of current ratings and price targets for American Express and SoFi Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Express | 3 | 8 | 6 | 0 | 2.18 |
| SoFi Technologies | 1 | 5 | 6 | 0 | 2.42 |
American Express presently has a consensus target price of $177.41, indicating a potential upside of 15.99%. SoFi Technologies has a consensus target price of $7.14, indicating a potential upside of 44.75%. Given SoFi Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe SoFi Technologies is more favorable than American Express.
Risk & Volatility
American Express has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, SoFi Technologies has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.
Profitability
This table compares American Express and SoFi Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Express | 13.00% | 29.44% | 3.26% |
| SoFi Technologies | -13.72% | -4.70% | -1.40% |
Summary
American Express beats SoFi Technologies on 8 of the 13 factors compared between the two stocks.
About American Express
American Express Co. engages in the provision of charge and credit card products and travel-related services. It operates through the following segments: U.S Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS), Global Merchant and Network Services (GMNS), and Corporate and Other. The USCS segment issues a wide range of proprietary consumer cards to U.S consumers. The CS segment offers proprietary corporate and small business cards and provides services to U.S. businesses, including payment and expense management, banking and non-card financing products. The ICS segment focuses on a range of proprietary consumer, small business and corporate cards outside the United States. It also provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and loyalty coalition businesses. The GMNS segment operates a global payments network that processes and settles card transactions, acquires merchants, and provides multi-channel marketing programs and capabilities, services, and data analytics. The Corporate and Other segment covers corporate functions and certain other businesses and op
About SoFi Technologies
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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