Critical Contrast: SoFi Technologies (NASDAQ:SOFI) versus BitFuFu (NASDAQ:FUFU)

SoFi Technologies (NASDAQ:SOFI) and BitFuFu (NASDAQ:FUFU) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Insider and Institutional Ownership

38.4% of SoFi Technologies shares are owned by institutional investors. Comparatively, 37.3% of BitFuFu shares are owned by institutional investors. 2.6% of SoFi Technologies shares are owned by insiders. Comparatively, 35.0% of BitFuFu shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares SoFi Technologies and BitFuFu”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoFi Technologies	$2.61 billion	5.28	$498.67 million	$0.37	34.03
BitFuFu	$452.74 million	1.70	$10.49 million	N/A	N/A

SoFi Technologies has higher revenue and earnings than BitFuFu.

Risk & Volatility

SoFi Technologies has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500. Comparatively, BitFuFu has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for SoFi Technologies and BitFuFu, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoFi Technologies	4	6	5	1	2.19
BitFuFu	0	0	1	0	3.00

SoFi Technologies presently has a consensus target price of $12.50, indicating a potential downside of 0.71%. BitFuFu has a consensus target price of $7.00, indicating a potential upside of 47.99%. Given BitFuFu’s stronger consensus rating and higher possible upside, analysts plainly believe BitFuFu is more favorable than SoFi Technologies.

Profitability

This table compares SoFi Technologies and BitFuFu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoFi Technologies	18.64%	3.82%	0.69%
BitFuFu	8.17%	40.15%	13.55%

Summary

SoFi Technologies beats BitFuFu on 8 of the 13 factors compared between the two stocks.

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.

About BitFuFu

BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.