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RY vs. SOFI: A Head-to-Head Stock Comparison

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Here’s a clear look at RY and SOFI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolRYSOFI
Company NameRoyal Bank of CanadaSoFi Technologies, Inc.
CountryCanadaUnited States
GICS SectorFinancialsFinancials
GICS IndustryBanksConsumer Finance
Market Capitalization193.37 billion USD26.97 billion USD
ExchangeNYSENasdaqGS
Listing DateOctober 16, 1995January 4, 2021
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of RY 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.

RY vs. SOFI: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolRYSOFI
5-Day Price Return1.07%-3.31%
13-Week Price Return7.50%64.02%
26-Week Price Return11.77%48.26%
52-Week Price Return22.93%201.88%
Month-to-Date Return6.32%-0.27%
Year-to-Date Return9.06%46.23%
10-Day Avg. Volume2.86M59.93M
3-Month Avg. Volume4.46M68.54M
3-Month Volatility12.15%46.66%
Beta0.041.97

Profitability

Return on Equity (TTM)

RY

14.09%

Banks Industry

Max
26.37%
Q3
15.92%
Median
12.25%
Q1
8.69%
Min
0.15%

RY’s Return on Equity of 14.09% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

SOFI

8.58%

Consumer Finance Industry

Max
32.87%
Q3
20.39%
Median
14.14%
Q1
7.64%
Min
-10.63%

SOFI’s Return on Equity of 8.58% is on par with the norm for the Consumer Finance industry, indicating its profitability relative to shareholder equity is typical for the sector.

RY vs. SOFI: A comparison of their Return on Equity (TTM) against their respective Banks and Consumer Finance industry benchmarks.

Net Profit Margin (TTM)

RY

26.26%

Banks Industry

Max
54.20%
Q3
35.70%
Median
28.97%
Q1
22.53%
Min
6.98%

RY’s Net Profit Margin of 26.26% is aligned with the median group of its peers in the Banks 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
15.94%
Median
13.37%
Q1
9.73%
Min
3.66%

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.

RY vs. SOFI: A comparison of their Net Profit Margin (TTM) against their respective Banks and Consumer Finance industry benchmarks.

Operating Profit Margin (TTM)

RY

34.59%

Banks Industry

Max
63.35%
Q3
44.59%
Median
37.24%
Q1
28.25%
Min
13.37%

RY’s Operating Profit Margin of 34.59% is around the midpoint for the Banks 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
29.38%
Median
18.31%
Q1
14.26%
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.

RY vs. SOFI: A comparison of their Operating Profit Margin (TTM) against their respective Banks and Consumer Finance industry benchmarks.

Profitability at a Glance

SymbolRYSOFI
Return on Equity (TTM)14.09%8.58%
Return on Assets (TTM)0.84%1.50%
Net Profit Margin (TTM)26.26%-19.79%
Operating Profit Margin (TTM)34.59%-19.92%
Gross Profit Margin (TTM)----

Financial Strength

Current Ratio (MRQ)

RY

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

For the Banks industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

SOFI

--

Consumer Finance Industry

Max
5.34
Q3
4.21
Median
2.67
Q1
0.71
Min
0.20

For the Consumer Finance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

RY vs. SOFI: A comparison of their Current Ratio (MRQ) against their respective Banks and Consumer Finance industry benchmarks.

Debt-to-Equity Ratio (MRQ)

RY

2.58

Banks Industry

Max
4.75
Q3
2.62
Median
1.02
Q1
0.39
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.

SOFI

0.57

Consumer Finance Industry

Max
6.63
Q3
3.39
Median
2.21
Q1
0.94
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Consumer Finance industry.

RY vs. SOFI: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Banks and Consumer Finance industry benchmarks.

Interest Coverage Ratio (TTM)

RY

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks industry.

SOFI

--

Consumer Finance Industry

Max
49.63
Q3
39.33
Median
4.56
Q1
2.97
Min
-15.69

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Consumer Finance industry.

RY vs. SOFI: A comparison of their Interest Coverage Ratio (TTM) against their respective Banks and Consumer Finance industry benchmarks.

Financial Strength at a Glance

SymbolRYSOFI
Current Ratio (MRQ)----
Quick Ratio (MRQ)----
Debt-to-Equity Ratio (MRQ)2.580.57
Interest Coverage Ratio (TTM)----

Growth

Revenue Growth

RY vs. SOFI: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

RY vs. SOFI: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

RY

3.17%

Banks Industry

Max
10.27%
Q3
5.83%
Median
3.81%
Q1
2.50%
Min
0.00%

RY’s Dividend Yield of 3.17% is consistent with its peers in the Banks industry, providing a dividend return that is standard for its sector.

SOFI

0.00%

Consumer Finance Industry

Max
8.31%
Q3
3.93%
Median
2.51%
Q1
0.84%
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.

RY vs. SOFI: A comparison of their Dividend Yield (TTM) against their respective Banks and Consumer Finance industry benchmarks.

Dividend Payout Ratio (TTM)

RY

46.36%

Banks Industry

Max
147.07%
Q3
80.55%
Median
54.40%
Q1
35.71%
Min
0.00%

RY’s Dividend Payout Ratio of 46.36% is within the typical range for the Banks industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

SOFI

0.00%

Consumer Finance Industry

Max
145.89%
Q3
88.53%
Median
23.79%
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.

RY vs. SOFI: A comparison of their Dividend Payout Ratio (TTM) against their respective Banks and Consumer Finance industry benchmarks.

Dividend at a Glance

SymbolRYSOFI
Dividend Yield (TTM)3.17%0.00%
Dividend Payout Ratio (TTM)46.36%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

RY

14.63

Banks Industry

Max
20.05
Q3
12.65
Median
10.21
Q1
7.54
Min
2.74

A P/E Ratio of 14.63 places RY in the upper quartile for the Banks industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

SOFI

47.53

Consumer Finance Industry

Max
34.39
Q3
20.36
Median
13.05
Q1
9.29
Min
4.74

At 47.53, 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.

RY vs. SOFI: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Banks and Consumer Finance industry benchmarks.

Price-to-Sales Ratio (TTM)

RY

3.00

Banks Industry

Max
5.06
Q3
2.98
Median
2.24
Q1
1.59
Min
0.45

The P/S Ratio is often not a primary valuation tool in the Banks industry.

SOFI

3.35

Consumer Finance Industry

Max
4.28
Q3
2.67
Median
1.88
Q1
1.15
Min
0.55

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.

RY vs. SOFI: A comparison of their Price-to-Sales Ratio (TTM) against their respective Banks and Consumer Finance industry benchmarks.

Price-to-Book Ratio (MRQ)

RY

1.76

Banks Industry

Max
2.18
Q3
1.36
Median
1.09
Q1
0.81
Min
0.20

RY’s P/B Ratio of 1.76 is in the upper tier for the Banks 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.

SOFI

2.93

Consumer Finance Industry

Max
3.63
Q3
2.40
Median
1.96
Q1
1.16
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.

RY vs. SOFI: A comparison of their Price-to-Book Ratio (MRQ) against their respective Banks and Consumer Finance industry benchmarks.

Valuation at a Glance

SymbolRYSOFI
Price-to-Earnings Ratio (TTM)14.6347.53
Price-to-Sales Ratio (TTM)3.003.35
Price-to-Book Ratio (MRQ)1.762.93
Price-to-Free Cash Flow Ratio (TTM)3.3837.91