Both SoFi (SOFI Quick QuoteSOFI - Free Report) and Nu Holdings (NU Quick QuoteNU - Free Report) are high-growth digital banking platforms disrupting traditional finance, targeting underserved or digitally native consumers with app-based financial services across lending, banking and investing.

SoFi, a U.S.-based digital financial services company, surpassed 10 million members in 2024, growing its user base by nearly 2.5 million that year. The company offers a comprehensive suite of financial products, including lending, banking, investing and insurance services. In 2024, SoFi’s revenues grew 26% year over year with net income of $498.7 million against a year-ago loss of $300.7 million.

Nu, operating across Brazil, Mexico, and Colombia, reached 114.2 million customers by the end of 2024, marking a 22% year-over-year increase. It became Brazil’s largest bank by primary account holders, surpassing Banco do Brasil, and was recognized as the Best Digital Bank in Latin America by Euromoney. In 2024, NU reported 43.4% year-over-year growth in revenues and 2% growth in net income.

Both platforms exemplify the shift toward digital-first banking solutions, leveraging technology to provide accessible and user-friendly financial services to a broad customer base.

SOFI’s Case in Detail

Galileo, SoFi’s B2B financial services platform, is a pivotal growth driver. By enabling seamless payment and lending integrations, it positions SoFi as a leading player in the embedded finance market. This sector is projected to grow at a robust 16.8% CAGR through 2029, fueled by increasing demand for integrated financial solutions. Galileo's ability to attract high-profile clients and diversify SoFi’s revenue streams strengthens the company's long-term outlook. The platform’s adoption by other financial firms further solidifies SoFi’s market position and enhances its ability to capture additional market share.

SoFi’s financials reinforce its bullish long-term thesis. In the first quarter of 2025, the company achieved a 20% year-over-year increase in net sales, with a remarkable 217% surge in net income. This impressive profitability growth highlights SoFi’s strong operating leverage, driven by its ability to scale efficiently. The addition of 800,000 new members in the quarter — the highest absolute increase recorded — enhances the company’s cross-selling potential while reducing customer acquisition costs.

All three business segments contributed to revenue growth in the first quarter. Lending and Technology Platform revenues grew 25% and 10% year over year, respectively, while the Financial Services segment surged an impressive 101%.

The Case of NU in Detail

As a fintech trailblazer, Nu Holdings employs a digital-first, scalable model to reduce operational costs and enhance efficiency. This approach has made NU a disruptor in the traditional banking sector, promoting financial inclusion across its markets. NuBank, its flagship platform, is now one of Latin America’s most trusted brands.

In Brazil’s traditionally bank-dominated landscape, NU stands out with a customer-centric model and innovative cost structure. Its customer base continues to grow rapidly, fueled by digital adoption. NU is also expanding in Mexico and Colombia, where uptake is accelerating. In the first quarter of 2025, it added 4.3 million customers, reaching 118.6 million globally. Continued digitization is expected to drive further growth.

NU’s diversified revenue streams — lending, interchange fees and marketplace services — reduce risk and offer stability. Its growth is underpinned by platform monetization and engagement, with credit cards and personal loans playing a key role. Revenues rose 19% year over year in Q1.

How Do Zacks Estimates Compare for SOFI & NU?

According to the Zacks Consensus Estimate, SoFi is expected to achieve 25% year-over-year sales growth and an impressive 80% jump in EPS in 2025, reflecting its improving profitability and operational efficiency.

Image Source: Zacks Investment Research

In contrast, Nu Holdings is projected to post a stronger sales growth of about 29%, driven by rapid customer acquisition and geographic expansion across Latin America. However, NU's EPS is forecasted to grow by 20%, trailing SoFi’s projected EPS growth. This contrast highlights NU’s aggressive top-line expansion strategy versus SoFi’s focus on bottom-line improvement through product monetization and cost control in a maturing U.S. market.

Image Source: Zacks Investment Research

SoFi’s Valuation Reflects Strong Growth Potential

While NU appears attractively valued with a forward 12-month P/E of 19.08X versus its median of 22.41X, SoFi's higher forward P/E of 36.07X — below its median of 41.22X — reflects investor confidence in its rapid earnings growth potential. With EPS expected to surge 80% in 2025, SoFi’s valuation premium is justified by its accelerating profitability, diversified financial services ecosystem, and growing U.S. market share.

SOFI Emerges as the Fintech Standout for Now

Both SOFI and NU demonstrate strong fundamentals, rapid customer growth and innovative digital models. However, SOFI edges out in terms of near-term earnings acceleration, segment diversification, and expanding profitability, reflected in its 80% projected EPS growth for 2025. While NU offers scale and attractive valuation, its focus seems to be more on top-line expansion. SOFI’s ability to drive bottom-line growth, supported by platforms like Galileo and rising cross-selling opportunities, positions it as the more compelling fintech at this moment. For investors seeking strong earnings momentum and operating leverage, SOFI currently stands out as the fintech leader to watch.

SOFI currently carries a Zacks Rank #3 (Hold) while NU carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.