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FUTU vs. NU: Which Fintech Stock Has More Growth Potential Right Now?
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Key Takeaways
FUTU posted a 69.7% year-over-year revenue surge and a 1570 bps margin expansion in 2Q25.
NU added 4.1M new clients, reaching 122.7M customers and lifting revenues 29% y/y.
FUTU drives growth via AI and wealth management, while NU scales through NuBank and credit risk control.
Both Futu Holdings Limited (FUTU - Free Report) and Nu Holdings (NU - Free Report) are prominent fintech players stirring up the market. FUTU is a digital brokerage platform operating in Hong Kong, China and other international markets. NU, with its banking, credit cards, and other financial services, serves the Latin American market.
Let us analyze these two companies and find out which can provide more upside to investors right now.
FUTU: International Expansion, Wealth Management & AI
Futu Holdings’ financial success is built on its ability to incorporate AI for internal operations. In doing so, the company recorded a whopping 69.7% year-over-year surge in its top line in the second quarter of 2025. FUTU’s ability to scale is reflected by its soaring 1570 bps operating margin expansion.
The company has shown clarity in its client-base expansion strategy as evidenced by the addition of 262,000 funded accounts in the second quarter of 2025, taking the total count to 2.7 million. A lofty 42% year-over-year growth in funded accounts was not only facilitated by the Hong Kong market, but also clients outside of this region played an important role. FUTU’s market expansion play led the company to witness significant top-line growth in the quarter and expand its margins.
We are bullish on the company’s stance on wealth management. As of the second quarter of 2025, FUTU’s total assets under management jumped 104.4% year over year. It is impressive how the company has partnered with more than 80 world-class fund companies and collaborated with China Asset Management to become the first retail distributor for the first tokenized money market funds.
The company is pushing its wealth management arm, banking on partnerships, a strategy that we expect the company to strengthen its revenue stream.
On the product front, the company is pretty clear with its strategy to utilize AI in its products and services. Futubull AI and moomoo AI are those offerings that have expanded FUTU’s global reach, providing efficient investment tools to global investors. The company has stepped into making FUTU a one-stop trading platform with diverse offerings, leveraging AI-backed offerings.
Nu Holdings’ sustenance in the Latin American region is vested in its potential to expand its customer base. During the second quarter of 2025, the company added more than 4.1 million customers, taking the total count to 122.7 million. This 17% year-over-year growth in client count provides a substantial financial gain to the company.
In the second quarter of 2025, NU recorded $3.7 billion in its top line, up 29% year over year. This growth has been achieved on the back of its fierce customer base expansion, pushing the average revenues per active customer 18% year over year to $12. On the profitability front, NU’s current position, based on its 14% increment in gross profit and 31% rise in net income, highlights its robust monetization strategy via lending.
Nu Holdings’ digital-first model is highly efficient. Its NuBank has done wonders for the company as it has broken the dominance of legacy banks in Brazil. Banking on this flagship business model, the company has gained trust and built its reputation in Latin America. As the company ramps up its expansion in Colombia and Mexico, we expect NU to solidify its position in the Latin American region, providing enough fuel to penetrate other markets.
Its low-cost financial services provided to the underserved demographic are key to scalability. Questions may be raised on the company’s ability to manage the inherent risks of credit default, threatening its scalability prowess. The answer lies in the company’s ability to manage risk utilizing data, AI and proprietary technology for assessing credit. A 30-basis point (bps) quarter-over-quarter decline in the 15-90-day NPL ratio highlights improvement in asset quality and stronger credit underwriting, a testament to efficient risk management.
How Do Estimates Compare for FUTU & NU?
The Zacks Consensus Estimate for FUTU’s 2025 sales and EPS hints at year-over-year growth of 42.9% and 66.9%, respectively. One estimate for 2025 has moved north in the past 60 days versus no southward revision.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NU’s 2025 sales and EPS indicates year-over-year growth of 32.2% and 24.4%, respectively. One estimate for 2025 has moved north in the past 60 days versus no southward revision.
Image Source: Zacks Investment Research
NU Trades Cheaper Than FUTU
Nu Holdings is trading at a forward price to sales multiple of 4.13 times, lower than its 12-month median of 3.65 times. FUTU’s forward earnings multiple stands at 9.82 times, higher than its median of 7.24 times.
Price / Sales F12M
Image Source: Zacks Investment Research
Verdict
Both NU and FUTU are strong fintech contenders. However, NU is a smarter buy. Nu Holdings’ swift customer base expansion and highly efficient business model position it to capture a larger market share within the Latin American region, paving the path to international expansion. Futu Holdings’ ability to draw in funded accounts not only from its primary market, Hong Kong, but also from other regions makes its international expansion strategy a success.
Despite both stocks being fundamentally strong, Nu Holdings has a discounted valuation compared with Futu Holdings, making it the better option for investors to consider to gain higher returns in the long run.
Image: Bigstock
FUTU vs. NU: Which Fintech Stock Has More Growth Potential Right Now?
Key Takeaways
Both Futu Holdings Limited (FUTU - Free Report) and Nu Holdings (NU - Free Report) are prominent fintech players stirring up the market. FUTU is a digital brokerage platform operating in Hong Kong, China and other international markets. NU, with its banking, credit cards, and other financial services, serves the Latin American market.
Let us analyze these two companies and find out which can provide more upside to investors right now.
FUTU: International Expansion, Wealth Management & AI
Futu Holdings’ financial success is built on its ability to incorporate AI for internal operations. In doing so, the company recorded a whopping 69.7% year-over-year surge in its top line in the second quarter of 2025. FUTU’s ability to scale is reflected by its soaring 1570 bps operating margin expansion.
The company has shown clarity in its client-base expansion strategy as evidenced by the addition of 262,000 funded accounts in the second quarter of 2025, taking the total count to 2.7 million. A lofty 42% year-over-year growth in funded accounts was not only facilitated by the Hong Kong market, but also clients outside of this region played an important role. FUTU’s market expansion play led the company to witness significant top-line growth in the quarter and expand its margins.
We are bullish on the company’s stance on wealth management. As of the second quarter of 2025, FUTU’s total assets under management jumped 104.4% year over year. It is impressive how the company has partnered with more than 80 world-class fund companies and collaborated with China Asset Management to become the first retail distributor for the first tokenized money market funds.
The company is pushing its wealth management arm, banking on partnerships, a strategy that we expect the company to strengthen its revenue stream.
On the product front, the company is pretty clear with its strategy to utilize AI in its products and services. Futubull AI and moomoo AI are those offerings that have expanded FUTU’s global reach, providing efficient investment tools to global investors. The company has stepped into making FUTU a one-stop trading platform with diverse offerings, leveraging AI-backed offerings.
NU: Customer-Base Expansion, NuBank & Risk Management
Nu Holdings’ sustenance in the Latin American region is vested in its potential to expand its customer base. During the second quarter of 2025, the company added more than 4.1 million customers, taking the total count to 122.7 million. This 17% year-over-year growth in client count provides a substantial financial gain to the company.
In the second quarter of 2025, NU recorded $3.7 billion in its top line, up 29% year over year. This growth has been achieved on the back of its fierce customer base expansion, pushing the average revenues per active customer 18% year over year to $12. On the profitability front, NU’s current position, based on its 14% increment in gross profit and 31% rise in net income, highlights its robust monetization strategy via lending.
Nu Holdings’ digital-first model is highly efficient. Its NuBank has done wonders for the company as it has broken the dominance of legacy banks in Brazil. Banking on this flagship business model, the company has gained trust and built its reputation in Latin America. As the company ramps up its expansion in Colombia and Mexico, we expect NU to solidify its position in the Latin American region, providing enough fuel to penetrate other markets.
Its low-cost financial services provided to the underserved demographic are key to scalability. Questions may be raised on the company’s ability to manage the inherent risks of credit default, threatening its scalability prowess. The answer lies in the company’s ability to manage risk utilizing data, AI and proprietary technology for assessing credit. A 30-basis point (bps) quarter-over-quarter decline in the 15-90-day NPL ratio highlights improvement in asset quality and stronger credit underwriting, a testament to efficient risk management.
How Do Estimates Compare for FUTU & NU?
The Zacks Consensus Estimate for FUTU’s 2025 sales and EPS hints at year-over-year growth of 42.9% and 66.9%, respectively. One estimate for 2025 has moved north in the past 60 days versus no southward revision.
The Zacks Consensus Estimate for NU’s 2025 sales and EPS indicates year-over-year growth of 32.2% and 24.4%, respectively. One estimate for 2025 has moved north in the past 60 days versus no southward revision.
NU Trades Cheaper Than FUTU
Nu Holdings is trading at a forward price to sales multiple of 4.13 times, lower than its 12-month median of 3.65 times. FUTU’s forward earnings multiple stands at 9.82 times, higher than its median of 7.24 times.
Price / Sales F12M
Verdict
Both NU and FUTU are strong fintech contenders. However, NU is a smarter buy. Nu Holdings’ swift customer base expansion and highly efficient business model position it to capture a larger market share within the Latin American region, paving the path to international expansion. Futu Holdings’ ability to draw in funded accounts not only from its primary market, Hong Kong, but also from other regions makes its international expansion strategy a success.
Despite both stocks being fundamentally strong, Nu Holdings has a discounted valuation compared with Futu Holdings, making it the better option for investors to consider to gain higher returns in the long run.
FUTU and NU both carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.