SoFi Technologies vs Affirm Which Is More Profitable?

SoFi Technologies and Affirm are both financial technology companies that have gained significant attention in the stock market in recent years. SoFi offers a wide range of financial products and services, including student loan refinancing, personal loans, and investing options, while Affirm specializes in buy-now-pay-later services for online shoppers. Both companies have experienced rapid growth and volatility in their stock prices, making them popular choices among investors seeking exposure to the fintech sector. The competition between SoFi Technologies and Affirm continues to intensify as they vie for market share and investor confidence.

SoFi Technologies or Affirm?

When comparing SoFi Technologies and Affirm, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between SoFi Technologies and Affirm.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. SoFi Technologies has a dividend yield of -%, while Affirm has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SoFi Technologies reports a 5-year dividend growth of 0.00% year and a payout ratio of 17.23%. On the other hand, Affirm reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with SoFi Technologies P/E ratio at 77.90 and Affirm's P/E ratio at -49.08. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SoFi Technologies P/B ratio is 2.72 while Affirm's P/B ratio is 7.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SoFi Technologies has seen a 5-year revenue growth of -0.18%, while Affirm's is 4.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SoFi Technologies's ROE at 3.61% and Affirm's ROE at -16.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $15.23 for SoFi Technologies and $67.12 for Affirm. Over the past year, SoFi Technologies's prices ranged from $6.01 to $16.61, with a yearly change of 176.37%. Affirm's prices fluctuated between $22.25 and $72.82, with a yearly change of 227.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.