Critical Review: SoFi Technologies (NASDAQ:SOFI) vs. SAIHEAT (NASDAQ:SAIH)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SoFi Technologies	18.64%	3.82%	0.69%
SAIHEAT	N/A	N/A	N/A

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoFi Technologies	4	6	5	0	2.07
SAIHEAT	0	0	0	0	0.00

SoFi Technologies presently has a consensus target price of $12.50, suggesting a potential downside of 12.95%. Given SoFi Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe SoFi Technologies is more favorable than SAIHEAT.

Risk & Volatility

SoFi Technologies has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, SAIHEAT has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.

Insider and Institutional Ownership

38.4% of SoFi Technologies shares are owned by institutional investors. Comparatively, 0.2% of SAIHEAT shares are owned by institutional investors. 2.6% of SoFi Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares SoFi Technologies and SAIHEAT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoFi Technologies	$2.67 billion	5.83	$498.67 million	$0.37	38.81
SAIHEAT	$6.78 million	1.51	-$6.12 million	N/A	N/A

SoFi Technologies has higher revenue and earnings than SAIHEAT.

Summary

SoFi Technologies beats SAIHEAT on 12 of the 12 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 SAIHEAT

SAIHEAT Limited engages in the development of liquid-cooling data centers. It develops technologies for the advanced computing center ecosystem, a center that provides high-performance servers, liquid cooling, and systems for capturing and recycling computing heat. The company was formerly known as SAI.TECH Global Corporation and changed its name to SAIHEAT Limited in August 2024. SAIHEAT Limited was founded in 2019 and is headquartered in Singapore.