Mastercard Incorporated (MA) vs SoFi Technologies, Inc. (SOFI)

Mastercard Incorporated and SoFi Technologies, Inc. are both Credit Services companies. Mastercard Incorporated is the larger, with a market value of $494.4B against $21.8B — 22.7× the size. Mastercard Incorporated trades at the lower P/E: 31.2× against 32.5×. SoFi Technologies, Inc. grew revenue faster over the last twelve months: 34.1% against 16.0%. Mastercard Incorporated has the higher net margin (46.3% vs 11.4%) and the higher return on invested capital (70.5% vs 4.26%). Across the 20 metrics below, Mastercard Incorporated leads on 13 and SoFi Technologies, Inc. on 7.

Valuation

Metric MA SOFI Credit Services median
P/E 31.17 32.51 9.64
P/S 14.27 3.81 0.87
P/B 89.31 1.92 1.16
Price to free cash flow 31.34 n/m 2.99
EV/EBITDA 21.32 n/m 9.58
EV/Sales 14.63 3.77 2.32
Earnings yield 3.21% 3.08% 6.72%
Free cash flow yield 3.19% (41.33%) 12.33%

Profitability

Metric MA SOFI Credit Services median
Gross margin 100.00% 77.13% 77.13%
Operating margin 58.33% 0.00% 0.34%
Net margin 46.34% 11.39% 9.25%
Free cash flow margin 45.53% (157.63%) 13.03%
Return on equity 241.20% 7.09% 8.49%
Return on assets 29.80% 1.25% 2.29%
Return on invested capital 70.46% 4.26% 4.09%

Growth

Metric MA SOFI Credit Services median
Revenue growth (TTM) 16.01% 34.08% 4.62%
EPS growth (last fiscal year) 18.93% 0.00% —
Revenue growth, 5-year CAGR 16.47% 44.73% 9.13%
Net income growth, 5-year CAGR 18.48% 0.00% 0.00%

Health

Metric MA SOFI Credit Services median
Debt to equity 4.40 0.30 0.68
Current ratio 1.06 0.74 1.55
Net debt to EBITDA 0.34 0.00 0.13

Dividend

Metric MA SOFI Credit Services median
Dividend yield 0.54% — 3.34%
Payout ratio 0.20 0.00 0.00

Size

Metric MA SOFI Credit Services median
Market cap 494.44b 21.79b 872.19m

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