Investing in the fast-growing financial technology (fintech) space can feel a little uncertain right now. The market is crowded with a wide range of companies, from tech-focused start-ups to large banks. But two companies that have been consistently at the forefront of the fintech trends are SoFi Technologies (SOFI -0.64%) and Nu Holdings (NU 0.27%).
While the companies have some overlapping services, they each offer a unique approach to fintech and serve separate markets. Here’s why SoFi and Nu are worth your consideration, and which looks like the better fintech stock right now.
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The case for SoFi
SoFi has worked hard over the past few years expanding its financial products and services, and that’s led to rapid growth. The number of SoFi members (what the company calls customers) spiked 34% in the first quarter to 10.9 million, and SoFi’s fee-based revenue surged 67% to $315 million.
The company offers its members everything from student loan refinancing to credit cards and personal loans, and the variety offerings has helped SoFi continually expand its customer base while offering current members new reasons to sign up for additional services.
Adjusted revenue rose 33% to $770 million in the first quarter as the company boosted its financial services and loans, and adjusted earnings per share soared 200% to $0.06.
The company’s membership growth and strong financial results led SoFi’s management to raise its 2025 guidance. That’s especially notable, because some companies have cut their guidance in light of the recent tariffs announcements and economic uncertainty.
With just shy of 11 million members, SoFi still has plenty of room to grow, and with each member using 1.4 SoFi products, on average, there’s still room for its members to sign up for new products as well.
The case for Nu Holdings
Nu Holdings got its start offering financial services to unbanked populations in Brazil and has exploded in growth over the past few years, expanding into Mexico and Colombia. Like SoFi, the company offers lots of products and services, including checking/savings accounts, loans, credit cards, and more.
However, one difference between Nu and SoFi is that Nu is far larger. Nu added 4.5 million customers in the fourth quarter of 2024 — reaching a whopping 114.2 million. Nu is also expanding revenue and earnings at a rapid pace, with sales surging 50% in the quarter to $3 billion and diluted earnings per share rising from $0.21 to $0.40.
You’d think that with Nu’s massive customer size, it might be hard for the company to find new areas to expand, but it’s doing just that. Nu recently received approval from Mexico to transition into a full-service bank in the country. Doing so will help it add to the already 10 million customers it has in the country by tapping into the estimated 51% of the population that is unbanked or underbanked.
Nu’s management didn’t issue guidance for 2025, but investors will get more insights when the company reports its first-quarter results on May 16. Analysts are anticipating a solid year, though, with a consensus earnings estimate of $0.58 per share on revenue of $15.96 billion.
Why Nu is the better fintech stock
Both of these companies have a lot of potential to continue growing and to be a good addition to your portfolio. But if I had to pick just one, I’d go with Nu Holdings.
The company’s large customer base means that it has a substantial number of users that many other fintech companies can’t match. And its recent expansion into Mexico’s banking sector means the company will soon be able to offer more products and services to even more customers.
Topping it all off is the fact that Nu Holdings has a forward price-to-earnings multiple of just 22, which is lower than SoFi’s 39.6. With the company growing fast and trading at a relative discount right now, Nu Holdings edges out SoFi for the win in this matchup.