SoFi Technologies (NASDAQ:SOFI) vs. PROG (NYSE:PRG) Head to Head Comparison

SoFi Technologies (NASDAQ:SOFI) and PROG (NYSE:PRG) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Volatility & Risk

SoFi Technologies has a beta of 2.33, indicating that its stock price is 133% more volatile than the S&P 500. Comparatively, PROG has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500.

Institutional and Insider Ownership

38.4% of SoFi Technologies shares are owned by institutional investors. Comparatively, 97.9% of PROG shares are owned by institutional investors. 2.5% of SoFi Technologies shares are owned by insiders. Comparatively, 3.7% of PROG shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for SoFi Technologies and PROG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoFi Technologies	3	10	10	1	2.38
PROG	0	3	7	0	2.70

SoFi Technologies currently has a consensus price target of $21.27, indicating a potential upside of 26.86%. PROG has a consensus price target of $47.38, indicating a potential upside of 29.05%. Given PROG’s stronger consensus rating and higher possible upside, analysts clearly believe PROG is more favorable than SoFi Technologies.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoFi Technologies	$4.73 billion	4.58	$481.32 million	$0.55	30.49
PROG	$2.76 billion	0.53	$146.79 million	$3.71	9.89

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SoFi Technologies	15.60%	6.89%	1.35%
PROG	5.46%	22.01%	8.89%

Summary

SoFi Technologies beats PROG on 8 of the 15 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 PROG

PROG Holdings, Inc. (NYSE:PRG) is a financial technology holding company based in Salt Lake City, Utah with three business segments: Progressive Leasing, which offers lease-to-own transactions primarily to credit-challenged consumers through e-commerce and point-of-sale retail partners, via online, mobile, and in-store solutions; Vive Financial, which provides consumers who may not qualify for traditional prime lending with a variety of second-look, revolving credit products through private label and branded credit cards; and Four Technologies, which provides consumers of all credit backgrounds Buy Now, Pay Later (BNPL) options through four interest-free installments via its platform, Four.