SoFi (NASDAQ:SOFI) stock is down by about 30% so far this year. That comes despite an impressive first-quarter earnings report that saw revenue grow by 37% year-over-year (YOY) to $645 million. Meanwhile, diluted EPS attributable to common stockholders was 2 cents compared to a loss of 5 cents a year ago. In other words, SoFi is profitable — a key goal for any publicly traded company.
The SOFI stock bears argue that the company should be valued as a bank. SoFi announced in January 2022 that the Office of the Comptroller of the Currency (OCC) and the Federal Reserve had approved its request to become a bank holding company.
Banks are often valued using the price-to-book (P/B) ratio. SoFi currently trades at a last 12 months (LTM) P/B multiple of 1.2x. That compares to JP Morgan’s (NYSE:JPM) multiple of 1.8x and Goldman Sach’s (NYSE:GS) multiple of 1.5x. At the same time, JP Morgan’s trailing 12 months (TTM) revenue compound annual growth rate (CAGR) is 16.17% and Goldman’s is 4.60% while SoFi’s is a much higher 34.60%.
Valuing a stock is a lengthy process that requires more scrutiny than just revenue growth. In addition, both JP Morgan and Goldman provide more financial services than SoFi, such as investment banking. However, SoFi’s P/B does appear low in relation to its growth.
5 Investors Betting Big on SOFI Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q1, 571 13F filers disclosed a stake in SOFI stock, an increase of 3.07%, or 17 filers, compared to the prior quarter. On top of that, net 13F exposure to SoFi increased by a significant 13.52% to 426.14 million shares. That’s certainly a bullish signal.
With that in mind, let’s take a look at SoFi’s top shareholders:
- Vanguard: 82.82 million shares. Vanguard added 1.36 million shares during Q1.
- BlackRock (NYSE:BLK): 41.79 million shares. BlackRock added 1.30 million shares during Q1.
- Silver Lake Group: 31.15 million shares. Silver Lake’s stake remained unchanged during Q1.
- State Street (NYSE:STT): 16.50 million shares. State Street added 331,750 shares during Q1.
- Geode Capital Management: 15.77 million shares. Geode added 800,972 shares during Q1.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
