Head-To-Head Analysis: EZCORP (NASDAQ:EZPW) vs. SoFi Technologies (NASDAQ:SOFI)

SoFi Technologies (NASDAQ:SOFI) and EZCORP (NASDAQ:EZPW) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Profitability

This table compares SoFi Technologies and EZCORP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoFi Technologies	14.78%	6.39%	1.28%
EZCORP	9.97%	13.99%	7.49%

Valuation and Earnings

This table compares SoFi Technologies and EZCORP”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoFi Technologies	$3.61 billion	6.54	$481.32 million	$0.48	38.40
EZCORP	$1.27 billion	1.38	$109.61 million	$1.98	14.47

SoFi Technologies has higher revenue and earnings than EZCORP. EZCORP is trading at a lower price-to-earnings ratio than SoFi Technologies, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

SoFi Technologies has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500. Comparatively, EZCORP has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for SoFi Technologies and EZCORP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoFi Technologies	3	10	7	0	2.20
EZCORP	0	2	6	0	2.75

SoFi Technologies presently has a consensus price target of $22.44, indicating a potential upside of 21.76%. EZCORP has a consensus price target of $38.80, indicating a potential upside of 35.43%. Given EZCORP’s stronger consensus rating and higher possible upside, analysts clearly believe EZCORP is more favorable than SoFi Technologies.

Insider & Institutional Ownership

38.4% of SoFi Technologies shares are held by institutional investors. Comparatively, 99.8% of EZCORP shares are held by institutional investors. 2.5% of SoFi Technologies shares are held by insiders. Comparatively, 2.1% of EZCORP shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

SoFi Technologies beats EZCORP on 8 of the 14 factors compared between the two stocks.

About SoFi Technologies

SoFi Technologies, Inc. provides various financial services in the United States, Latin America, and Canada. It operates through three segments: Lending, Technology Platform, and Financial Services. The company offers lending and financial services and products that allows its members to borrow, save, spend, invest, and protect money. It offers personal loans, student loans, home loans, and related services. The company also operates Galileo, a technology platform that offers services to financial and non-financial institution; and Technisys, a cloud-native digital and core banking platform with financial services customers. In addition, it provides SoFi Money offers checking and savings accounts, debit cards, and cash management products; and SoFi Invest, a mobile-first investment platform that provides access to trading and advisory solutions, such as investing and robo-advisory. Further, the company offers SoFi Credit Card that provides cash backs on every purchase; Sofi Relay, a personal finance management product that allows to track all of their financial accounts comprising credit score and spending behaviors; SoFi Protect, which offers insurance product; SoFi Travel, an application that manages travel search and booking experience; SoFi At Work provides financial benefits to employees, including student loan payments made on their employees' behalf; Lantern Credit, a financial services marketplace platform for seeking alternative products and provide product comparisons; and other lending as a service that offers pre-qualified borrower referrals and sells loans to third-party partner. The company was founded in 2011 and is based in San Francisco, California.

About EZCORP

EZCORP, Inc. provides pawn services in the United States and Latin America. The company operates through three segments: U.S. Pawn, Latin America Pawn, and Other Investments. The company offers pawn loans collateralized by tangible personal property, jewelry, consumer electronics, tools, sporting goods, and musical instruments. It also retails merchandise, primarily collateral forfeited from pawn lending operations and pre-owned merchandise purchased from customers. In addition, the company provides EZ+, a web-based application that allow customers to manage their pawn transactions, layaways, and loyalty rewards online. Further, it operates under the EZPAWN, Value Pawn & Jewelry, Empeño Fácil, Cash Apoyo Efectivo, GuatePrenda, and MaxiEfectivo brands. EZCORP, Inc. was incorporated in 1989 and is headquartered in Austin, Texas.