Financial Comparison: Katapult (NASDAQ:KPLT) vs. SoFi Technologies (NASDAQ:SOFI)

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

Analyst Ratings

This is a summary of current recommendations and price targets for SoFi Technologies and Katapult, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoFi Technologies	3	10	8	0	2.24
Katapult	1	0	0	0	1.00

SoFi Technologies presently has a consensus price target of $22.42, suggesting a potential upside of 20.11%. Given SoFi Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe SoFi Technologies is more favorable than Katapult.

Insider & Institutional Ownership

38.4% of SoFi Technologies shares are held by institutional investors. Comparatively, 26.8% of Katapult shares are held by institutional investors. 2.5% of SoFi Technologies shares are held by company insiders. Comparatively, 8.0% of Katapult shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

SoFi Technologies has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500. Comparatively, Katapult has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SoFi Technologies	14.78%	6.22%	1.22%
Katapult	3.60%	-26.41%	10.86%

Earnings and Valuation

This table compares SoFi Technologies and Katapult”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoFi Technologies	$3.61 billion	6.67	$481.32 million	$0.48	38.88
Katapult	$291.76 million	0.10	$1.37 million	$1.37	4.24

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

Summary

SoFi Technologies beats Katapult on 11 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 Katapult

Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.