SoFi Technologies (NASDAQ:SOFI – Get Free Report) and SLM (NASDAQ:SLMBP – Get Free Report) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Institutional and Insider Ownership
32.7% of SoFi Technologies shares are owned by institutional investors. 2.7% of SoFi Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares SoFi Technologies and SLM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoFi Technologies | -13.72% | -4.70% | -1.40% |
| SLM | N/A | N/A | N/A |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoFi Technologies | $1.72 billion | 5.25 | -$320.41 million | ($0.31) | -30.87 |
| SLM | $1.85 billion | N/A | N/A | N/A | N/A |
SLM has higher revenue and earnings than SoFi Technologies.
Analyst Ratings
This is a summary of recent ratings and recommmendations for SoFi Technologies and SLM, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoFi Technologies | 3 | 7 | 4 | 0 | 2.07 |
| SLM | 0 | 0 | 0 | 0 | N/A |
SoFi Technologies currently has a consensus price target of $7.79, suggesting a potential downside of 18.64%. Given SoFi Technologies’ higher probable upside, research analysts clearly believe SoFi Technologies is more favorable than SLM.
About SoFi Technologies
SoFi Technologies, Inc. provides various financial services. 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 also 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 institutions and brokerage services, as well as Technisys, a cloud-native digital and core banking platform with financial services customers. In addition, it offers checking and savings accounts; debit cards; and cash management products. Further, the company provides SoFi Invest, a mobile investment platform that provide its members access to trading and advisory solutions, such as active investing, robo-advisory, and digital assets accounts. The company was founded in 2011 and is headquartered in San Francisco, California.
About SLM
SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States. It also offers retail deposit accounts, including certificates of deposit, money market deposit accounts, and high-yield savings accounts; and interest-bearing omnibus accounts. The company was formerly known as New BLC Corporation and changed its name to SLM Corporation in December 2013. SLM Corporation was founded in 1972 and is headquartered in Newark, Delaware.
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