Better Buy: SoFi Technologies vs. Bank of America Stock
Financial stocks can cover the gamut of big, established banks through digital upstarts. SoFi Technologies (NASDAQ: SOFI) is a young and growing all-digital bank that's adding customers at a rapid pace. Bank of America (NYSE: BAC) is a large, traditional bank that pays a dividend. Which of these stocks is the better buy today?
Jennifer Saibil (SoFi): SoFi has been reporting incredible growth, and its strategy of recruiting new customers and getting them to adopt more products and services is leading to improved profitability. In addition to its core lending products, SoFi now offers banking accounts, investing, and more all on its easy-to-use digital app.
There was more of the same in the 2023 fourth quarter. Revenue increased 35% over last year, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was up 159%. It added 585,000 new accounts, a 44% increase over last year, for a total of 7.5 million, and it added almost 700,000 new products.
Source Fool.com
