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

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

Company Profile

SymbolSOFITW
Company NameSoFi Technologies, Inc.Tradeweb Markets Inc.
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryConsumer FinanceCapital Markets
Market Capitalization31.31 billion USD27.96 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJanuary 4, 2021April 4, 2019
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of SOFI and TW 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.

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

Historical Performance at a Glance

SymbolSOFITW
5-Day Price Return14.95%-1.41%
13-Week Price Return98.26%-12.41%
26-Week Price Return61.62%-2.59%
52-Week Price Return263.70%7.72%
Month-to-Date Return15.81%-8.91%
Year-to-Date Return69.81%-3.60%
10-Day Avg. Volume68.32M1.14M
3-Month Avg. Volume69.83M1.17M
3-Month Volatility47.26%28.30%
Beta1.970.90

Profitability

Return on Equity (TTM)

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.

TW

9.49%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
Min
-4.25%

TW’s Return on Equity of 9.49% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

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.

TW

28.85%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
Min
-15.18%

TW’s Net Profit Margin of 28.85% is aligned with the median group of its peers in the Capital Markets industry. This indicates its ability to convert revenue into profit is typical for the sector.

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

Operating Profit Margin (TTM)

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.

TW

38.86%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
Min
-21.87%

TW’s Operating Profit Margin of 38.86% is around the midpoint for the Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolSOFITW
Return on Equity (TTM)8.58%9.49%
Return on Assets (TTM)1.50%7.44%
Net Profit Margin (TTM)-19.79%28.85%
Operating Profit Margin (TTM)-19.92%38.86%
Gross Profit Margin (TTM)----

Financial Strength

Current Ratio (MRQ)

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.

TW

2.80

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

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

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

Debt-to-Equity Ratio (MRQ)

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.

TW

0.00

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

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

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

Interest Coverage Ratio (TTM)

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.

TW

232.25

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

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

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

Financial Strength at a Glance

SymbolSOFITW
Current Ratio (MRQ)--2.80
Quick Ratio (MRQ)--2.80
Debt-to-Equity Ratio (MRQ)0.570.00
Interest Coverage Ratio (TTM)--232.25

Growth

Revenue Growth

SOFI vs. TW: 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

SOFI vs. TW: 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)

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.

TW

0.30%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

TW’s Dividend Yield of 0.30% is in the lower quartile for the Capital Markets industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

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

Dividend Payout Ratio (TTM)

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.

TW

16.80%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
Min
0.00%

TW’s Dividend Payout Ratio of 16.80% is in the lower quartile for the Capital Markets industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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

Dividend at a Glance

SymbolSOFITW
Dividend Yield (TTM)0.00%0.30%
Dividend Payout Ratio (TTM)0.00%16.80%

Valuation

Price-to-Earnings Ratio (TTM)

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.

TW

55.21

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

A P/E Ratio of 55.21 places TW in the upper quartile for the Capital Markets industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

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

Price-to-Sales Ratio (TTM)

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.

TW

15.93

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

With a P/S Ratio of 15.93, TW trades at a valuation that eclipses even the highest in the Capital Markets industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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

Price-to-Book Ratio (MRQ)

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.

TW

5.12

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

TW’s P/B Ratio of 5.12 is in the upper tier for the Capital Markets 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 vs. TW: A comparison of their Price-to-Book Ratio (MRQ) against their respective Consumer Finance and Capital Markets industry benchmarks.

Valuation at a Glance

SymbolSOFITW
Price-to-Earnings Ratio (TTM)47.5355.21
Price-to-Sales Ratio (TTM)3.3515.93
Price-to-Book Ratio (MRQ)2.935.12
Price-to-Free Cash Flow Ratio (TTM)37.9132.39