SoFi Technologies, Inc. (SOFI)vs COIN Holdings, Inc. (COIN)

Quick verdict

SoFi Technologies, Inc. (SOFI) and COIN Holdings, Inc. (COIN) appeal to different investors. On our six-factor framework, SOFI scores 4 and COIN scores 2. SOFI looks cheaper on the multiples that matter, while COIN grows faster and COIN earns higher returns on capital. Overall, SOFI edges this comparison, but the right pick depends on whether you prioritise value, growth, income or balance-sheet safety.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

SoFi Technologies, Inc. operates in Credit Services (Financial Services), while COIN Holdings, Inc. sits in Credit Services (Financial Services). Because both compete in the same sector, this is a direct head-to-head and the financial differences below are especially meaningful. SOFI carries a beta of 1.54 versus 0.65 for COIN, meaning SOFI has historically been the more volatile of the two.

Valuation

On valuation, SOFI is the cheaper stock. SOFI trades on a forward P/E of n/a and EV/EBITDA of 30.92, against 36.74 and 10.32 for COIN. Price-to-sales is 9.11 vs 15.99, and free-cash-flow yield is 4.0% vs 2.0%. A higher multiple is only justified if the company can sustain faster growth or wider margins, which is exactly what the next sections test.

Growth profile

COIN is the faster grower. SOFI has compounded revenue at 9.9% over three years with EPS growth of 13.3%, while COIN has delivered 28.3% revenue and 41.6% EPS growth. Growth like this is the single biggest driver of long-term returns, but it also tends to come with a richer valuation, so it must be weighed against the multiples above.

Profitability and quality

On profitability and quality, COIN is stronger. SOFI posts a 1.5% operating margin, -14.2% return on equity and -2.7% return on invested capital. COIN posts 33.2%, 44.1% and 8.9% respectively. Return on invested capital above roughly 15% is a hallmark of a durable competitive advantage, so this metric deserves particular attention.

Balance-sheet risk

SOFI has the safer balance sheet. SOFI carries net-debt/EBITDA of -0.92x with a current ratio of 3.00, versus -0.28x and 2.79 for COIN. Lower leverage gives a company more room to invest through a downturn and reduces the risk of dilution or distress.

Price performance and shareholder returns

Over the past year SOFI returned 86.9% against 6.3% for COIN; on a three-year annualised basis it is 23.5% vs 28.4%. SOFI yields 0.0% and COIN yields 0.0%. Past performance never guarantees future results, but the multi-year track record shows how the market has rewarded each business so far.

Which stock fits which investor

For value-oriented investors, SOFI is the better fit on today's multiples. Growth investors will likely prefer COIN, which is expanding faster. Income investors should lean toward SOFI for its higher shareholder yield, while investors who prize quality-at-a-reasonable-price will favour COIN for its superior returns on capital. This is a comparison of facts, not a recommendation — your time horizon, risk tolerance and existing holdings should drive the final decision.

• Value: SOFI
• Growth: COIN
• Income: SOFI
• Quality: COIN

Frequently asked questions

Is SOFI or COIN the better buy right now?

Neither is universally "better." SOFI scores 4 and COIN scores 2 on our six-factor framework. SOFI is cheaper, COIN grows faster, and COIN is higher quality — so the right pick depends on your objective.

Which stock is cheaper, SOFI or COIN?

SOFI is the cheaper stock across forward P/E (n/a vs 36.74), EV/EBITDA (30.92 vs 10.32) and price-to-sales (9.11 vs 15.99).

Which has grown faster, SOFI or COIN?

COIN has the stronger growth profile, with three-year revenue CAGR of 9.9% for SOFI versus 28.3% for COIN.

Which stock pays a bigger dividend?

SOFI yields 0.0% and COIN yields 0.0%, so SOFI is the stronger income choice.

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