Head to Head Review: SoFi Technologies (NASDAQ:SOFI) versus MARA (NASDAQ:MARA)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for SoFi Technologies and MARA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoFi Technologies	3	5	7	1	2.38
MARA	1	4	5	0	2.40

SoFi Technologies currently has a consensus price target of $14.38, suggesting a potential upside of 7.99%. MARA has a consensus price target of $20.83, suggesting a potential upside of 40.20%. Given MARA’s stronger consensus rating and higher probable upside, analysts plainly believe MARA is more favorable than SoFi Technologies.

Risk & Volatility

SoFi Technologies has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, MARA has a beta of 6.82, suggesting that its share price is 582% more volatile than the S&P 500.

Profitability

This table compares SoFi Technologies and MARA’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%
MARA	27.48%	-8.40%	-6.92%

Insider and Institutional Ownership

38.4% of SoFi Technologies shares are held by institutional investors. Comparatively, 44.5% of MARA shares are held by institutional investors. 2.6% of SoFi Technologies shares are held by insiders. Comparatively, 0.8% of MARA shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares SoFi Technologies and MARA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoFi Technologies	$2.80 billion	5.26	$498.67 million	$0.41	32.49
MARA	$705.06 million	7.42	$261.17 million	($1.45)	-10.25

SoFi Technologies has higher revenue and earnings than MARA. MARA is trading at a lower price-to-earnings ratio than SoFi Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

SoFi Technologies beats MARA on 9 of the 15 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 MARA

MARA Holdings, Inc. operates as a digital asset technology company that mines digital assets with a focus on the bitcoin ecosystem in United States. The company was formerly known as Marathon Digital Holdings, Inc. and changed its name to MARA Holdings, Inc. in August 2024. MARA Holdings, Inc. was incorporated in 2010 and is headquartered in Fort Lauderdale, Florida.