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OPFI vs. SOFI: Which Fintech Credit Stock Is the Better Buy Right Now?
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Key Takeaways
OPFI's Q2 revenues grew 12.8% y/y, with higher loan originations and improved auto approval rates.
SOFI added 850K members, lifting total users 34% and boosting fee-based income past $1.5B.
OPFI trades at a forward P/E of 6.93X versus SOFI's 54.82X, highlighting a steep valuation gap.
Both OppFi Inc. (OPFI - Free Report) and SoFi Technologies (SOFI - Free Report) operate within the fintech lending space. While OPFI offers credit products and financial services to the underserved, SOFI targets the mass-market customers.
We have analyzed both stocks to find out which of these two fintech credit stocks provides an upside.
The Case for OppFi
OppFi’s strategy to cater to the non-prime or subprime customers is a niche approach that allows the company to operate within a fintech market that is anticipated to see a CAGR of 15.3% from 2025 to 2030 (per Mordor Intelligence). OPFI has set up its business around credit offering, drawing in a hefty demand from the underserved population.
In the second quarter of 2025, the company's performance has spoken for itself. OPFI’s customer strategy and dynamic pricing resulted in the top line growing 12.8% year over year and net originations jumping 13.8%. On the credit risk front, OPFI’s Model 6 has improved the loan auto approval rate to 80% from the year-ago quarter’s 76%. Overall, we have found OppFi managing a significantly strong financial and risk profile.
OPFI has painted an optimistic full-year picture with management expecting revenues to hover around $578-$605 million compared with the preceding quarter’s view of $563-$594 million. The management’s wishful expectation of $125-$130 million for its adjusted net income from the preceding quarter’s $106-$113 million is certainly a green flag for investors.
Meanwhile, it appears that the company operates within a risky business environment. Providing credit to non-prime or sub-prime customers attracts a higher risk of credit default. This is an inherent risk that the company will always have to face despite the AI and machine learning-based models deployed to mitigate the credit risks.
The Case for SoFi Technologies
SOFI added 850,000 members in the second quarter of 2025, an impressive feat that led the total membership count to 11.7 million, a 34% year-over-year increase. The company recorded the addition of 1.3 million products, marking 34% year-over-year growth, a testament to effective customer engagement.
SoFi Technologies’ robust cross-selling capabilities and product diversity are reflected by the adoption of 35% of the newly added products by its existing members. This highlights a lower churn risk, improving customer value. SOFI’s ability to grow its member base positions it to operate sustainably for the long haul and maintain its competitive edge.
On the risk front, the company has lowered its interest rate fluctuations and credit risk, as the company has curbed its reliance on traditional interest-based income, with annualized fee-based revenues surpassing $1.5 billion. Furthermore, SOFI’s prudent cost management expanded its adjusted EBITDA margin by 600 bps in the June-end quarter, paving the way for sustained profitability.
Despite this impressive performance, competition remains fierce. The company not only competes with neobanks but also faces challenges from traditional banks. As a result, there is always a possibility of a shrinkage in its market share. To maintain its position, OPFI will have to innovate continuously, which may create imbalances with growth and profitability.
How Do Estimates Compare for OPFI & SOFI?
The Zacks Consensus Estimate for OPFI’s 2025 sales and EPS indicates year-over-year growth of 12% and 49.5%, respectively. There has been no change in analyst estimates or revisions lately.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SOFI’s 2025 sales and EPS indicates year-over-year rallies of 32.3% and 113.3%, respectively. Three estimates for 2025 have moved north in the past 60 days versus one southward revision.
Image Source: Zacks Investment Research
OPFI Trades Cheaper Than SOFI
OppFi is trading at a forward earnings multiple of 6.93 times, lower than its 12-month median of 8.52 times. SoFi Technologies’ forward earnings multiple stands at 54.82 times, higher than its median of 50.59 times. OPFI trades significantly cheaper than SOFI.
P/E - F12M
Image Source: Zacks Investment Research
Verdict
Both OPFI and SOFI display compelling growth narratives, banking on a customer-driven strategy. However, OppFi’s risk mitigation strategy and the management’s optimistic full-year guidance provide a significant boost to investor morale.
Although both stocks appear fundamentally strong, OPFI stands out due to its cheaper valuation. Investors may find OppFi to have a greater probability of appreciating as the market recognizes its true worth.
Image: Bigstock
OPFI vs. SOFI: Which Fintech Credit Stock Is the Better Buy Right Now?
Key Takeaways
Both OppFi Inc. (OPFI - Free Report) and SoFi Technologies (SOFI - Free Report) operate within the fintech lending space. While OPFI offers credit products and financial services to the underserved, SOFI targets the mass-market customers.
We have analyzed both stocks to find out which of these two fintech credit stocks provides an upside.
The Case for OppFi
OppFi’s strategy to cater to the non-prime or subprime customers is a niche approach that allows the company to operate within a fintech market that is anticipated to see a CAGR of 15.3% from 2025 to 2030 (per Mordor Intelligence). OPFI has set up its business around credit offering, drawing in a hefty demand from the underserved population.
In the second quarter of 2025, the company's performance has spoken for itself. OPFI’s customer strategy and dynamic pricing resulted in the top line growing 12.8% year over year and net originations jumping 13.8%. On the credit risk front, OPFI’s Model 6 has improved the loan auto approval rate to 80% from the year-ago quarter’s 76%. Overall, we have found OppFi managing a significantly strong financial and risk profile.
OPFI has painted an optimistic full-year picture with management expecting revenues to hover around $578-$605 million compared with the preceding quarter’s view of $563-$594 million. The management’s wishful expectation of $125-$130 million for its adjusted net income from the preceding quarter’s $106-$113 million is certainly a green flag for investors.
Meanwhile, it appears that the company operates within a risky business environment. Providing credit to non-prime or sub-prime customers attracts a higher risk of credit default. This is an inherent risk that the company will always have to face despite the AI and machine learning-based models deployed to mitigate the credit risks.
The Case for SoFi Technologies
SOFI added 850,000 members in the second quarter of 2025, an impressive feat that led the total membership count to 11.7 million, a 34% year-over-year increase. The company recorded the addition of 1.3 million products, marking 34% year-over-year growth, a testament to effective customer engagement.
SoFi Technologies’ robust cross-selling capabilities and product diversity are reflected by the adoption of 35% of the newly added products by its existing members. This highlights a lower churn risk, improving customer value. SOFI’s ability to grow its member base positions it to operate sustainably for the long haul and maintain its competitive edge.
On the risk front, the company has lowered its interest rate fluctuations and credit risk, as the company has curbed its reliance on traditional interest-based income, with annualized fee-based revenues surpassing $1.5 billion. Furthermore, SOFI’s prudent cost management expanded its adjusted EBITDA margin by 600 bps in the June-end quarter, paving the way for sustained profitability.
Despite this impressive performance, competition remains fierce. The company not only competes with neobanks but also faces challenges from traditional banks. As a result, there is always a possibility of a shrinkage in its market share. To maintain its position, OPFI will have to innovate continuously, which may create imbalances with growth and profitability.
How Do Estimates Compare for OPFI & SOFI?
The Zacks Consensus Estimate for OPFI’s 2025 sales and EPS indicates year-over-year growth of 12% and 49.5%, respectively. There has been no change in analyst estimates or revisions lately.
The Zacks Consensus Estimate for SOFI’s 2025 sales and EPS indicates year-over-year rallies of 32.3% and 113.3%, respectively. Three estimates for 2025 have moved north in the past 60 days versus one southward revision.
OPFI Trades Cheaper Than SOFI
OppFi is trading at a forward earnings multiple of 6.93 times, lower than its 12-month median of 8.52 times. SoFi Technologies’ forward earnings multiple stands at 54.82 times, higher than its median of 50.59 times. OPFI trades significantly cheaper than SOFI.
P/E - F12M
Verdict
Both OPFI and SOFI display compelling growth narratives, banking on a customer-driven strategy. However, OppFi’s risk mitigation strategy and the management’s optimistic full-year guidance provide a significant boost to investor morale.
Although both stocks appear fundamentally strong, OPFI stands out due to its cheaper valuation. Investors may find OppFi to have a greater probability of appreciating as the market recognizes its true worth.
OPFI and SOFI have a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.