Apple Inc. (AAPL)vs SoFi Technologies, Inc. (SOFI)

Quick verdict

Apple (AAPL) and SoFi Technologies (SOFI) represent very different investment profiles within the broader market. Apple, a large-cap consumer electronics company, carries a beta of 1.097 and trades at a trailing P/E of 40.26, supported by strong profitability metrics including a 32.64% operating margin and 146.69% ROE. SoFi, a financial-services credit platform, shows a higher beta of 2.149, reflecting greater share-price volatility, alongside a trailing P/E of 36.16 and no forward P/E reported. Apple scores higher on quality (A) and income (A), while SoFi is rated best for growth and value according to the supplied verdicts. Overall scores favour Apple (3.5) over SoFi (2.5), with Apple tagged 'high-quality' and SoFi tagged 'high-growth, high-volatility'. Balance sheet comparisons are rated a tie (TIE). Both carry distinct risk-return characteristics suited to different investor priorities.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

Apple Inc. designs, manufactures and sells consumer electronics, operating within the Technology sector under the Consumer Electronics industry, headquartered in the US and listed on NASDAQ. Its business spans hardware devices alongside services, generating a market capitalisation of approximately $4.90 trillion. SoFi Technologies operates in the Financial Services sector, specifically Financial - Credit Services, providing online financial solutions including lending and banking products. SoFi's market capitalisation stands at approximately $22.17 billion, considerably smaller than Apple's. Apple's average daily trading volume of 54.83 million shares is lower than SoFi's 76.42 million, despite Apple's far larger market size, indicating differing liquidity dynamics. Both companies operate in the US and are listed on NASDAQ, but they serve fundamentally different end markets—consumer hardware versus digital financial services.

Valuation

On valuation, Apple trades at a trailing P/E of 40.26 and a forward P/E of 26.84, alongside a price-to-sales ratio of 10.86 and price-to-book of 46.1. SoFi's trailing P/E of 36.16 is slightly lower than Apple's, though no forward P/E figure is available, and its price-to-sales ratio of 4.31 and price-to-book of 2.04 are both markedly lower than Apple's. Apple's EV/EBITDA of 30.87 exceeds SoFi's 23.18, while SoFi's FCF yield of 3.95% is marginally higher than Apple's 3.57%. Apple's PEG ratio of 1.39 is considerably lower than SoFi's 5.42, suggesting Apple's valuation is more supported by its earnings growth trajectory. The overall valuation verdict is rated B, with SoFi identified as best suited to value-oriented considerations per the supplied verdicts.

Growth profile

SoFi demonstrates a stronger 3-year revenue CAGR of 28.78% compared with Apple's 6.43%, though over five years Apple's revenue CAGR of 29.32% surpasses SoFi's 7.75%. On earnings, Apple's EPS CAGR over three years stands at 22.59% versus SoFi's negative 8.7%, while over five years Apple's 39.1% EPS CAGR outpaces SoFi's 11.33%. These figures indicate that Apple has shown more consistent earnings expansion across both time horizons, whereas SoFi's growth pattern is more mixed, with strong recent top-line expansion but earnings volatility. The growth verdict is rated A, and per the supplied verdicts, SoFi is identified as best suited to growth-focused considerations despite Apple's stronger long-term CAGR figures across most metrics shown here.

Profitability and quality

Apple's margin profile is substantially stronger, with gross margin of 47.86%, operating margin of 32.64%, and net margin of 27.15%, compared with SoFi's gross margin of 76.02% but operating margin of just 12.56% and net margin of 11.22%. Return metrics further highlight the gap: Apple posts ROE of 146.69% and ROIC of 49.57%, versus SoFi's ROE of 6.25% and ROIC of 4.29%. While SoFi's gross margin appears higher on paper, this does not translate into comparable bottom-line profitability or capital efficiency relative to Apple. The quality verdict rated A applies to this comparison, with Apple carrying the 'high-quality' style tag, reflecting its superior operating efficiency and return generation across the metrics provided.

Balance-sheet risk

Apple holds cash of approximately $67.92 billion against total debt of $76.23 billion, with a net debt/EBITDA ratio of -1.5 and a current ratio of 1.07. SoFi holds a larger cash position of $25.83 billion relative to its size, against total debt of $83.74 billion, with a net debt/EBITDA ratio of -0.92 but a notably lower current ratio of 0.17. Apple's interest coverage of 3.19 is considerably below SoFi's 23.65, suggesting SoFi services its interest obligations more comfortably despite the difference in current ratios. Given these mixed signals across leverage, liquidity and coverage metrics, the balance sheet verdict is rated a tie (TIE), indicating neither company shows a clearly superior overall balance sheet position based on the data provided.

Price performance and shareholder returns

Apple's year-to-date return of 58.09% and one-year return of 73.53% outpace SoFi's YTD return of -2.38%, though SoFi's one-year return of 86.87% exceeds Apple's over that period. Over three years annualised, Apple's 27.16% return is close to SoFi's 23.51%, while over five years annualised Apple shows a slight decline of -0.6% versus SoFi's positive 13.61%. SoFi's maximum five-year drawdown of -47.4% is considerably deeper than Apple's -19.47%, consistent with SoFi's higher beta of 2.149 against Apple's 1.097. The momentum verdict is rated B for this comparison, with return patterns across different timeframes showing no consistent outperformer between the two names based on the supplied data.

Which stock fits which investor

Based on the supplied verdicts, Apple is identified as best suited to investors prioritising income and quality, supported by its A-rated income and quality scores, dividend yield of 0.31%, and buyback yield of 2.3%. SoFi is identified as best suited to investors prioritising growth and value considerations, aligning with its 'high-growth, high-volatility' style tag and stronger three-year revenue CAGR of 28.78%. Apple's overall score of 3.5 exceeds SoFi's 2.5 in this comparison. Investors weighing these two names may consider how factors such as beta (1.097 for Apple versus 2.149 for SoFi) and maximum drawdown (-19.47% versus -47.4%) align with their own risk tolerance and stated priorities, as reflected in the bestFor categorisations supplied.

• Value: SOFI
• Growth: AAPL
• Income: AAPL
• Quality: AAPL

Frequently asked questions

Which company has stronger profitability metrics, Apple or SoFi?

Apple shows stronger profitability across most measures, with an operating margin of 32.64%, net margin of 27.15%, ROE of 146.69% and ROIC of 49.57%, compared with SoFi's operating margin of 12.56%, net margin of 11.22%, ROE of 6.25% and ROIC of 4.29%. SoFi's gross margin of 76.02% is higher than Apple's 47.86%, but this does not carry through to comparable bottom-line returns.

How do Apple and SoFi compare on valuation?

Apple trades at a trailing P/E of 40.26 and forward P/E of 26.84, with a PEG ratio of 1.39. SoFi's trailing P/E is 36.16 with no forward P/E reported, and a higher PEG ratio of 5.42. SoFi's price-to-sales (4.31) and price-to-book (2.04) ratios are notably lower than Apple's (10.86 and 46.1 respectively).

Which stock has shown higher volatility historically?

SoFi carries a beta of 2.149 versus Apple's 1.097, and its maximum five-year drawdown of -47.4% is considerably deeper than Apple's -19.47%, indicating SoFi has experienced larger price swings historically based on the supplied data.

What do the overall verdicts suggest about each company's strengths?

Per the supplied verdicts, Apple carries an overall score of 3.5 with a 'high-quality' style tag and is rated best for income and quality. SoFi carries an overall score of 2.5 with a 'high-growth, high-volatility' style tag and is rated best for value and growth. The balance sheet comparison between the two is rated a tie.

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