Comparing SoFi Technologies (NASDAQ:SOFI) & SWK (NASDAQ:SWKH)

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

Earnings & Valuation

This table compares SoFi Technologies and SWK”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoFi Technologies	$3.61 billion	6.72	$481.32 million	$0.38	50.08
SWK	$41.46 million	4.64	-$2.53 million	$1.86	8.55

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

Volatility & Risk

SoFi Technologies has a beta of 2.24, suggesting that its stock price is 124% more volatile than the S&P 500. Comparatively, SWK has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SoFi Technologies and SWK, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoFi Technologies	3	10	7	0	2.20
SWK	0	2	0	0	2.00

SoFi Technologies currently has a consensus target price of $24.85, suggesting a potential upside of 30.60%. SWK has a consensus target price of $18.00, suggesting a potential upside of 13.21%. Given SoFi Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe SoFi Technologies is more favorable than SWK.

Institutional and Insider Ownership

38.4% of SoFi Technologies shares are held by institutional investors. Comparatively, 99.3% of SWK shares are held by institutional investors. 2.6% of SoFi Technologies shares are held by insiders. Comparatively, 1.3% of SWK shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SoFi Technologies	13.34%	5.88%	1.10%
SWK	-6.11%	0.22%	0.19%

Summary

SoFi Technologies beats SWK on 12 of the 14 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 SWK

SWK Holdings Corporation, offers specialty finance and asset management services in the United States. It operates in two segments, Finance Receivables and Pharmaceutical Development. The Finance Receivables segment provides customized financing solutions to a range of life science companies, including companies in the biotechnology, medical device, medical diagnostics and related tools, animal health, and pharmaceutical industries, as well as institutions and inventors. This segment also offers non-discretionary investment advisory services to institutional clients in separately managed accounts to invest in life science finance. The Pharmaceutical Development segment provides customers pharmaceutical development, formulation, and manufacturing services, as well as formulation solutions built around its proprietary oral drug delivery technologies, the Peptelligence platform. It also offers intellectual property licensing business. The company was formerly known as Kana Software, Inc. and changed its name to SWK Holdings Corporation in December 2009. SWK Holdings Corporation was incorporated in 1996 and is headquartered in Dallas, Texas.