PYPL vs. SOFI: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at PYPL and SOFI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | PYPL | SOFI |
|---|---|---|
| Company Name | PayPal Holdings, Inc. | SoFi Technologies, Inc. |
| Country | United States | United States |
| GICS Sector | Financials | Financials |
| GICS Industry | Financial Services | Consumer Finance |
| Market Capitalization | 72.73 billion USD | 33.55 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | July 6, 2015 | January 4, 2021 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of PYPL 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.
Historical Performance at a Glance
| Symbol | PYPL | SOFI |
|---|---|---|
| 5-Day Price Return | 10.45% | 7.89% |
| 13-Week Price Return | 1.74% | 38.58% |
| 26-Week Price Return | 23.37% | 163.35% |
| 52-Week Price Return | -5.15% | 238.82% |
| Month-to-Date Return | 13.53% | 6.06% |
| Year-to-Date Return | -10.80% | 81.95% |
| 10-Day Avg. Volume | 17.86M | 77.00M |
| 3-Month Avg. Volume | 11.51M | 71.69M |
| 3-Month Volatility | 34.49% | 46.84% |
| Beta | 1.42 | 1.96 |
Profitability
Return on Equity (TTM)
PYPL
23.09%
Financial Services Industry
- Max
- 39.28%
- Q3
- 18.88%
- Median
- 9.97%
- Q1
- 4.03%
- Min
- -10.25%
In the upper quartile for the Financial Services industry, PYPL’s Return on Equity of 23.09% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
SOFI
8.58%
Consumer Finance Industry
- Max
- 32.87%
- Q3
- 21.72%
- Median
- 12.80%
- Q1
- 9.07%
- Min
- -3.88%
SOFI’s Return on Equity of 8.58% is in the lower quartile for the Consumer Finance industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Net Profit Margin (TTM)
PYPL
14.49%
Financial Services Industry
- Max
- 52.16%
- Q3
- 25.35%
- Median
- 12.68%
- Q1
- 6.11%
- Min
- -11.69%
PYPL’s Net Profit Margin of 14.49% is aligned with the median group of its peers in the Financial Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
SOFI
-19.79%
Consumer Finance Industry
- Max
- 19.68%
- Q3
- 17.11%
- Median
- 13.55%
- Q1
- 9.71%
- Min
- -0.75%
SOFI has a negative Net Profit Margin of -19.79%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Operating Profit Margin (TTM)
PYPL
18.17%
Financial Services Industry
- Max
- 75.57%
- Q3
- 37.78%
- Median
- 19.09%
- Q1
- 10.04%
- Min
- -19.42%
PYPL’s Operating Profit Margin of 18.17% is around the midpoint for the Financial Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
SOFI
-19.92%
Consumer Finance Industry
- Max
- 50.11%
- Q3
- 32.02%
- Median
- 19.92%
- Q1
- 14.90%
- Min
- -5.45%
SOFI has a negative Operating Profit Margin of -19.92%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | PYPL | SOFI |
|---|---|---|
| Return on Equity (TTM) | 23.09% | 8.58% |
| Return on Assets (TTM) | 5.74% | 1.50% |
| Net Profit Margin (TTM) | 14.49% | -19.79% |
| Operating Profit Margin (TTM) | 18.17% | -19.92% |
| Gross Profit Margin (TTM) | 41.68% | -- |
Financial Strength
Current Ratio (MRQ)
PYPL
1.33
Financial Services Industry
- Max
- 4.83
- Q3
- 2.70
- Median
- 1.44
- Q1
- 0.86
- Min
- 0.01
For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
SOFI
--
Consumer Finance Industry
- Max
- 7.85
- Q3
- 4.26
- Median
- 2.28
- Q1
- 0.82
- Min
- 0.07
For the Consumer Finance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio (MRQ)
PYPL
0.56
Financial Services Industry
- Max
- 5.07
- Q3
- 2.14
- Median
- 0.66
- Q1
- 0.12
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.
SOFI
0.57
Consumer Finance Industry
- Max
- 6.63
- Q3
- 3.60
- Median
- 2.40
- Q1
- 0.99
- Min
- 0.23
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Consumer Finance industry.
Interest Coverage Ratio (TTM)
PYPL
1,066.80
Financial Services Industry
- Max
- 136.23
- Q3
- 56.08
- Median
- 6.55
- Q1
- 2.01
- Min
- -33.27
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.
SOFI
--
Consumer Finance Industry
- Max
- 49.63
- Q3
- 28.11
- Median
- 4.75
- Q1
- 2.86
- Min
- -15.69
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Consumer Finance industry.
Financial Strength at a Glance
| Symbol | PYPL | SOFI |
|---|---|---|
| Current Ratio (MRQ) | 1.33 | -- |
| Quick Ratio (MRQ) | 1.28 | -- |
| Debt-to-Equity Ratio (MRQ) | 0.56 | 0.57 |
| Interest Coverage Ratio (TTM) | 1,066.80 | -- |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
PYPL
0.00%
Financial Services Industry
- Max
- 8.12%
- Q3
- 3.37%
- Median
- 1.70%
- Q1
- 0.00%
- Min
- 0.00%
PYPL 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.
SOFI
0.00%
Consumer Finance Industry
- Max
- 7.21%
- Q3
- 3.38%
- Median
- 2.39%
- Q1
- 0.67%
- 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 (TTM)
PYPL
0.00%
Financial Services Industry
- Max
- 132.10%
- Q3
- 64.32%
- Median
- 18.23%
- Q1
- 0.00%
- Min
- 0.00%
PYPL 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.
SOFI
0.00%
Consumer Finance Industry
- Max
- 145.89%
- Q3
- 88.89%
- Median
- 25.97%
- Q1
- 9.25%
- 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 | PYPL | SOFI |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
PYPL
15.54
Financial Services Industry
- Max
- 45.81
- Q3
- 30.21
- Median
- 16.29
- Q1
- 10.14
- Min
- 0.70
PYPL’s P/E Ratio of 15.54 is within the middle range for the Financial Services 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
59.14
Consumer Finance Industry
- Max
- 35.93
- Q3
- 20.63
- Median
- 12.65
- Q1
- 9.73
- Min
- 3.96
At 59.14, SOFI’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Consumer Finance industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Price-to-Sales Ratio (TTM)
PYPL
2.25
Financial Services Industry
- Max
- 10.88
- Q3
- 5.34
- Median
- 2.64
- Q1
- 1.24
- Min
- 0.06
The P/S Ratio is often not a primary valuation tool in the Financial Services industry.
SOFI
3.35
Consumer Finance Industry
- Max
- 3.79
- Q3
- 2.71
- Median
- 1.91
- Q1
- 1.14
- Min
- 0.61
SOFI’s P/S Ratio of 3.35 is in the upper echelon for the Consumer Finance industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
PYPL
3.58
Financial Services Industry
- Max
- 7.93
- Q3
- 3.78
- Median
- 1.49
- Q1
- 0.88
- Min
- 0.08
PYPL’s P/B Ratio of 3.58 is within the conventional range for the Financial Services 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
2.93
Consumer Finance Industry
- Max
- 3.80
- Q3
- 2.83
- Median
- 2.02
- Q1
- 1.18
- Min
- 0.26
SOFI’s P/B Ratio of 2.93 is in the upper tier for the Consumer Finance 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 | PYPL | SOFI |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 15.54 | 59.14 |
| Price-to-Sales Ratio (TTM) | 2.25 | 3.35 |
| Price-to-Book Ratio (MRQ) | 3.58 | 2.93 |
| Price-to-Free Cash Flow Ratio (TTM) | 13.74 | 47.17 |