Forget Bank of America; Buy This Magnificent Bank Stock Instead

With a market cap approaching $300 billion and total assets on the balance sheet of $3.3 trillion, Bank of America is undoubtedly one of the largest financial institutions out there. It’s also known to be one of Warren Buffett-led Berkshire Hathaway‘s top holdings.

That might prompt you to give this bank stock some added attention, or even to buy shares. But if you continue reading, you may forget soon about Bank of America and instead strongly consider buying the magnificent bank stock featured below.

Strong growth trends

Capitalism creates (and requires) constant innovation. Perhaps no business has innovated in the banking sector quite like SoFi Technologies (NASDAQ: SOFI) has. This company went from focusing solely on refinancing student debt to now becoming a full-on digital banking powerhouse. SoFi provides checking and savings accounts, a brokerage service, credit and debit cards, and various loan products.

The business has been growing rapidly over the years. It has 7.5 million customers, up from fewer than 1 million four years ago. This has resulted in revenue rising 375% between 2019 and 2023. SoFi is clearly doing a good job catering specifically to the needs of its user base, attracting a higher-income and digitally savvy clientele.

Even in a higher-rate environment, which should create headwinds for any bank, SoFi is reporting tremendous growth, which is very encouraging. Revenue increased 35% last year. Bank of America, on the other hand, saw its revenue decline 2% in the just-ended first quarter.

Investors can be optimistic about SoFi’s growth continuing for a long time. Management expects revenue to increase by 20% to 25% annually over the next three years. Should the company successfully penetrate international markets even remotely as it has the U.S., the expansionary runway is even more massive.

Looking at profitability

Bank of America deserves credit because it has a much longer operating history than SoFi. This means it has built up a core competency when it comes to operating a massive financial institution in a profitable manner. Consistent…

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