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SoFi vs. OppFi: Which Fintech Stock Offers Better Momentum Now?
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Key Takeaways
SOFI posted 20% y/y top-line growth and a 217% net income surge in Q1, led by Galileo and a member base rise.
OPFI Q1 net income soars 285.1% y/y, with improved charge-off rates and a 16% jump in net originations.
SOFI trades at 41.76X forward P/E, while OPFI's 10.99X valuation signals stronger upside potential.
Both SoFi (SOFI - Free Report) and OppFi (OPFI - Free Report) are growth-focused fintech companies challenging the traditional finance landscape. SoFi, a one-stop shop digital financial services platform, serves prime and near-prime borrowers. Meanwhile, OppFi specializes in tech-fueled consumer credit solutions, targeting subprime borrowers.
Our comparative analysis will help investors determine which fintech stock offers a more optimistic growth prospect.
The Case for SOFI
SoFi’s long-term growth strategy is bolstered by Galileo, an acquired B2B financial service platform. By offering a faster and more innovative way to deliver debit cards and banking services, Galileo helps position SOFI as a leader in the embedded finance market. The market is expected to grow, seeing a CAGR of 16.8% through 2029 on the back of rising demand for integrated financial solutions.
The company’s prospects look brighter with Galileo supporting it by attracting high-profile clients and diversifying SOFI’s revenue streams. As SOFI recognizes and leverages Galileo’s potential, we can expect the company to capture a larger market share.
Now, down to operational efficiency and scalability, we find the company to have performed exceptionally well. In the first quarter of 2025, the top line witnessed 20% year-over-year growth, with the net income exploding 217% from the year-ago quarter. This excellent demonstration of profitability highlights SoFi’s robust operating leverage.
A 34% year-over-year member rise, which is an addition of 800,000 members in the quarter, expanded the SoFi ecosystem and improved cross-selling capabilities, resulting in a dip in customer acquisition costs as members adopt more products.
SOFI’s segmental performance impressively grew across all three core business areas in the first quarter of 2025. While the 101% surge in the Financial Services segment stole the spotlight, the Lending and Technology Platforms' 25% and 10% increases are equally notable. This overall growth highlights the strong potential of SOFI’s products, fueling future expansion and reinforcing its status as a market leader.
The Case for OPFI
As a fintech pioneer, OppFi’s strategy to target the underbanked customers has created a niche within the alternative lending platform market. This market is expected to grow, seeing a CAGR of 25.4% from 2025 to 2030. Seizing this opportune moment, OPFI is set to gain, leveraging AI and ML-based technology to cater to the subprime and non-prime credit holders.
OPFI’s first-quarter 2025 results paint a clear picture of its operational efficiency and scalability within the underserved market. OppFi’s top line showed modest 10.1% year-over-year growth in the quarter, while a whopping 285.1% surge in adjusted net income made investors turn heads. This outstanding improvement, wherein profitability shot up exponentially in comparison to revenues, signals the company’s strong operating leverage and disciplined cost management.
OppFi's profitability was backed by its ability to acquire customers and manage risk efficiently. In the first quarter of 2025, with the help of Model 6, the company reduced its net charge-off rate by 700 basis points (bps) from the preceding quarter and 1300 bps year over year.
The company witnessed a 16% rise in net originations and a 79% auto-approval rate, up from the year-ago quarter’s 73%. Banking on enhanced credit modeling and technological advancements, we can expect OPFI to cement its position as a leader in its field, assuring profitable expansion.
How Do Estimates Compare for SOFI & OPFI?
The Zacks Consensus Estimate for SoFi’s 2025 sales is pegged at $3.3 billion, suggesting 26.2% year-over-year growth. The consensus estimate for earnings is pegged at 27 cents, indicating an 80% surge from the preceding year’s actual. Seven earnings estimates for 2025 have moved north in the past 60 days, versus no southward revisions.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OppFi’s 2025 sales is pegged at $578.4 million, implying 10% year-over-year growth. The consensus estimate for earnings is pegged at $1.23 per share, indicating a 29.5% year-over-year decline. Two earnings estimates for 2025 have moved north in the past 60 days, versus no southward revisions.
Image Source: Zacks Investment Research
OPFI Looks Cheaper Than SOFI
OPFI is currently trading at a forward 12-month P/E ratio of 10.99X, which is higher than the 12-month median of 7.95X. SOFI is trading at 41.76X, which is marginally above the 12-month median of 40.17X. While both stocks are trading at a premium compared with their historical valuations, OPFI appears way cheaper than SOFI.
Image Source: Zacks Investment Research
Verdict
OppFi is a must-buy stock, driven by its focus on underbanked customers and strong quarterly results demonstrating exceptional profitability growth and effective risk management. However, SoFi, despite its robust operational leverage and strategic advantage derived from Galileo, is a hold due to its premium valuation.
OppFi, being significantly cheaper than SoFi from a valuation standpoint, provides ample room for appreciation for investors.
Image: Bigstock
SoFi vs. OppFi: Which Fintech Stock Offers Better Momentum Now?
Key Takeaways
Both SoFi (SOFI - Free Report) and OppFi (OPFI - Free Report) are growth-focused fintech companies challenging the traditional finance landscape. SoFi, a one-stop shop digital financial services platform, serves prime and near-prime borrowers. Meanwhile, OppFi specializes in tech-fueled consumer credit solutions, targeting subprime borrowers.
Our comparative analysis will help investors determine which fintech stock offers a more optimistic growth prospect.
The Case for SOFI
SoFi’s long-term growth strategy is bolstered by Galileo, an acquired B2B financial service platform. By offering a faster and more innovative way to deliver debit cards and banking services, Galileo helps position SOFI as a leader in the embedded finance market. The market is expected to grow, seeing a CAGR of 16.8% through 2029 on the back of rising demand for integrated financial solutions.
The company’s prospects look brighter with Galileo supporting it by attracting high-profile clients and diversifying SOFI’s revenue streams. As SOFI recognizes and leverages Galileo’s potential, we can expect the company to capture a larger market share.
Now, down to operational efficiency and scalability, we find the company to have performed exceptionally well. In the first quarter of 2025, the top line witnessed 20% year-over-year growth, with the net income exploding 217% from the year-ago quarter. This excellent demonstration of profitability highlights SoFi’s robust operating leverage.
A 34% year-over-year member rise, which is an addition of 800,000 members in the quarter, expanded the SoFi ecosystem and improved cross-selling capabilities, resulting in a dip in customer acquisition costs as members adopt more products.
SOFI’s segmental performance impressively grew across all three core business areas in the first quarter of 2025. While the 101% surge in the Financial Services segment stole the spotlight, the Lending and Technology Platforms' 25% and 10% increases are equally notable. This overall growth highlights the strong potential of SOFI’s products, fueling future expansion and reinforcing its status as a market leader.
The Case for OPFI
As a fintech pioneer, OppFi’s strategy to target the underbanked customers has created a niche within the alternative lending platform market. This market is expected to grow, seeing a CAGR of 25.4% from 2025 to 2030. Seizing this opportune moment, OPFI is set to gain, leveraging AI and ML-based technology to cater to the subprime and non-prime credit holders.
OPFI’s first-quarter 2025 results paint a clear picture of its operational efficiency and scalability within the underserved market. OppFi’s top line showed modest 10.1% year-over-year growth in the quarter, while a whopping 285.1% surge in adjusted net income made investors turn heads. This outstanding improvement, wherein profitability shot up exponentially in comparison to revenues, signals the company’s strong operating leverage and disciplined cost management.
OppFi's profitability was backed by its ability to acquire customers and manage risk efficiently. In the first quarter of 2025, with the help of Model 6, the company reduced its net charge-off rate by 700 basis points (bps) from the preceding quarter and 1300 bps year over year.
The company witnessed a 16% rise in net originations and a 79% auto-approval rate, up from the year-ago quarter’s 73%. Banking on enhanced credit modeling and technological advancements, we can expect OPFI to cement its position as a leader in its field, assuring profitable expansion.
How Do Estimates Compare for SOFI & OPFI?
The Zacks Consensus Estimate for SoFi’s 2025 sales is pegged at $3.3 billion, suggesting 26.2% year-over-year growth. The consensus estimate for earnings is pegged at 27 cents, indicating an 80% surge from the preceding year’s actual. Seven earnings estimates for 2025 have moved north in the past 60 days, versus no southward revisions.
The Zacks Consensus Estimate for OppFi’s 2025 sales is pegged at $578.4 million, implying 10% year-over-year growth. The consensus estimate for earnings is pegged at $1.23 per share, indicating a 29.5% year-over-year decline. Two earnings estimates for 2025 have moved north in the past 60 days, versus no southward revisions.
OPFI Looks Cheaper Than SOFI
OPFI is currently trading at a forward 12-month P/E ratio of 10.99X, which is higher than the 12-month median of 7.95X. SOFI is trading at 41.76X, which is marginally above the 12-month median of 40.17X. While both stocks are trading at a premium compared with their historical valuations, OPFI appears way cheaper than SOFI.
Verdict
OppFi is a must-buy stock, driven by its focus on underbanked customers and strong quarterly results demonstrating exceptional profitability growth and effective risk management. However, SoFi, despite its robust operational leverage and strategic advantage derived from Galileo, is a hold due to its premium valuation.
OppFi, being significantly cheaper than SoFi from a valuation standpoint, provides ample room for appreciation for investors.
OPFI sports a Zacks Rank #1 (Strong Buy), whereas SOFI has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.