GS vs. SOFI: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GS and SOFI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
GS’s market capitalization of 222.05 billion USD is substantially larger than SOFI’s 20.53 billion USD, indicating a significant difference in their market valuations.
With betas of 1.31 for GS and 1.83 for SOFI, both stocks show similar sensitivity to overall market movements.
| Symbol | GS | SOFI |
|---|---|---|
| Company Name | The Goldman Sachs Group, Inc. | SoFi Technologies, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Capital Markets | Financial - Credit Services |
| CEO | David Solomon | Anthony J. Noto |
| Price | 723.68 USD | 18.57 USD |
| Market Cap | 222.05 billion USD | 20.53 billion USD |
| Beta | 1.31 | 1.83 |
| Exchange | NYSE | NASDAQ |
| IPO Date | May 4, 1999 | January 4, 2021 |
| ADR | No | No |
Historical Performance
This chart compares the performance of GS and SOFI by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
GS
12.22%
Financial - Capital Markets Industry
- Max
- 42.02%
- Q3
- 20.69%
- Median
- 13.73%
- Q1
- 3.33%
- Min
- -21.32%
GS’s Return on Equity of 12.22% is on par with the norm for the Financial - Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.
SOFI
7.64%
Financial - Credit Services Industry
- Max
- 34.05%
- Q3
- 18.70%
- Median
- 10.57%
- Q1
- 3.55%
- Min
- -12.12%
SOFI’s Return on Equity of 7.64% is on par with the norm for the Financial - Credit Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
GS
1.71%
Financial - Capital Markets Industry
- Max
- 30.24%
- Q3
- 13.34%
- Median
- 6.20%
- Q1
- -1.71%
- Min
- -16.91%
Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Capital Markets industry.
SOFI
1.81%
Financial - Credit Services Industry
- Max
- 68.11%
- Q3
- 32.26%
- Median
- 9.52%
- Q1
- 3.37%
- Min
- -7.03%
Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Credit Services industry.
Net Profit Margin
GS
11.79%
Financial - Capital Markets Industry
- Max
- 28.67%
- Q3
- 13.52%
- Median
- 10.47%
- Q1
- 0.24%
- Min
- -9.55%
GS’s Net Profit Margin of 11.79% is aligned with the median group of its peers in the Financial - Capital Markets industry. This indicates its ability to convert revenue into profit is typical for the sector.
SOFI
17.36%
Financial - Credit Services Industry
- Max
- 39.42%
- Q3
- 20.10%
- Median
- 12.91%
- Q1
- 5.82%
- Min
- -14.80%
SOFI’s Net Profit Margin of 17.36% is aligned with the median group of its peers in the Financial - Credit Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
GS
14.90%
Financial - Capital Markets Industry
- Max
- 56.86%
- Q3
- 25.29%
- Median
- 15.90%
- Q1
- 0.51%
- Min
- -19.18%
GS’s Operating Profit Margin of 14.90% is around the midpoint for the Financial - Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.
SOFI
11.33%
Financial - Credit Services Industry
- Max
- 77.26%
- Q3
- 42.86%
- Median
- 17.99%
- Q1
- 10.82%
- Min
- -14.94%
SOFI’s Operating Profit Margin of 11.33% is around the midpoint for the Financial - Credit Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | GS | SOFI |
|---|---|---|
| Return on Equity (TTM) | 12.22% | 7.64% |
| Return on Assets (TTM) | 0.84% | 1.28% |
| Return on Invested Capital (TTM) | 1.71% | 1.81% |
| Net Profit Margin (TTM) | 11.79% | 17.36% |
| Operating Profit Margin (TTM) | 14.90% | 11.33% |
| Gross Profit Margin (TTM) | 42.02% | 97.15% |
Financial Strength
Current Ratio
GS
0.90
Financial - Capital Markets Industry
- Max
- 4.60
- Q3
- 3.24
- Median
- 1.32
- Q1
- 0.96
- Min
- 0.05
For the Financial - Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
SOFI
--
Financial - Credit Services Industry
- Max
- 8.15
- Q3
- 4.39
- Median
- 2.62
- Q1
- 1.06
- Min
- 0.15
For the Financial - Credit Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio
GS
4.91
Financial - Capital Markets Industry
- Max
- 3.63
- Q3
- 1.68
- Median
- 0.37
- Q1
- 0.09
- Min
- 0.00
With a Debt-to-Equity Ratio of 4.91, GS operates with exceptionally high leverage compared to the Financial - Capital Markets industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
SOFI
0.47
Financial - Credit Services Industry
- Max
- 4.69
- Q3
- 2.55
- Median
- 1.20
- Q1
- 0.55
- Min
- 0.00
Falling into the lower quartile for the Financial - Credit Services industry, SOFI’s Debt-to-Equity Ratio of 0.47 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
GS
0.26
Financial - Capital Markets Industry
- Max
- 12.71
- Q3
- 7.94
- Median
- 1.92
- Q1
- 0.24
- Min
- -7.71
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Capital Markets industry.
SOFI
0.29
Financial - Credit Services Industry
- Max
- 17.48
- Q3
- 7.42
- Median
- 1.59
- Q1
- 0.38
- Min
- -7.77
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Credit Services industry.
Financial Strength at a Glance
| Symbol | GS | SOFI |
|---|---|---|
| Current Ratio (TTM) | 0.90 | -- |
| Quick Ratio (TTM) | 0.90 | -- |
| Debt-to-Equity Ratio (TTM) | 4.91 | 0.47 |
| Debt-to-Asset Ratio (TTM) | 0.35 | 0.08 |
| Net Debt-to-EBITDA Ratio (TTM) | 20.99 | 2.69 |
| Interest Coverage Ratio (TTM) | 0.26 | 0.29 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for GS and SOFI. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
GS
1.66%
Financial - Capital Markets Industry
- Max
- 5.86%
- Q3
- 1.74%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
GS’s Dividend Yield of 1.66% is consistent with its peers in the Financial - Capital Markets industry, providing a dividend return that is standard for its sector.
SOFI
0.00%
Financial - Credit Services Industry
- Max
- 14.68%
- Q3
- 2.97%
- Median
- 1.03%
- Q1
- 0.00%
- Min
- 0.00%
SOFI currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio
GS
30.16%
Financial - Capital Markets Industry
- Max
- 128.06%
- Q3
- 43.11%
- Median
- 12.56%
- Q1
- 0.00%
- Min
- 0.00%
GS’s Dividend Payout Ratio of 30.16% is within the typical range for the Financial - Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
SOFI
0.00%
Financial - Credit Services Industry
- Max
- 169.58%
- Q3
- 38.15%
- Median
- 18.30%
- Q1
- 0.00%
- Min
- 0.00%
SOFI has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | GS | SOFI |
|---|---|---|
| Dividend Yield (TTM) | 1.66% | 0.00% |
| Dividend Payout Ratio (TTM) | 30.16% | 0.00% |
Valuation
Price-to-Earnings Ratio
GS
15.60
Financial - Capital Markets Industry
- Max
- 42.65
- Q3
- 29.09
- Median
- 20.52
- Q1
- 14.58
- Min
- 8.28
GS’s P/E Ratio of 15.60 is within the middle range for the Financial - Capital Markets industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
SOFI
42.33
Financial - Credit Services Industry
- Max
- 42.04
- Q3
- 25.88
- Median
- 12.28
- Q1
- 9.55
- Min
- 3.09
At 42.33, SOFI’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial - Credit Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
GS
1.30
Financial - Capital Markets Industry
- Max
- 4.05
- Q3
- 2.46
- Median
- 1.52
- Q1
- 0.78
- Min
- 0.02
GS’s Forward PEG Ratio of 1.30 is within the middle range of its peers in the Financial - Capital Markets industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
SOFI
0.65
Financial - Credit Services Industry
- Max
- 2.76
- Q3
- 1.57
- Median
- 0.82
- Q1
- 0.51
- Min
- 0.06
SOFI’s Forward PEG Ratio of 0.65 is within the middle range of its peers in the Financial - Credit Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
GS
1.76
Financial - Capital Markets Industry
- Max
- 14.34
- Q3
- 7.63
- Median
- 2.98
- Q1
- 1.50
- Min
- 0.04
The P/S Ratio is often not a primary valuation tool in the Financial - Capital Markets industry.
SOFI
7.40
Financial - Credit Services Industry
- Max
- 6.24
- Q3
- 3.02
- Median
- 1.54
- Q1
- 0.75
- Min
- 0.32
The P/S Ratio is often not a primary valuation tool in the Financial - Credit Services industry.
Price-to-Book Ratio
GS
1.87
Financial - Capital Markets Industry
- Max
- 9.60
- Q3
- 6.00
- Median
- 2.91
- Q1
- 1.84
- Min
- 0.53
GS’s P/B Ratio of 1.87 is within the conventional range for the Financial - Capital Markets industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
SOFI
3.05
Financial - Credit Services Industry
- Max
- 3.58
- Q3
- 2.84
- Median
- 1.28
- Q1
- 0.84
- Min
- 0.07
SOFI’s P/B Ratio of 3.05 is in the upper tier for the Financial - Credit Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | GS | SOFI |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 15.60 | 42.33 |
| Forward PEG Ratio (TTM) | 1.30 | 0.65 |
| Price-to-Sales Ratio (P/S, TTM) | 1.76 | 7.40 |
| Price-to-Book Ratio (P/B, TTM) | 1.87 | 3.05 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -9.06 | -10.16 |
| EV-to-EBITDA (TTM) | 31.52 | 55.15 |
| EV-to-Sales (TTM) | 5.26 | 7.78 |