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SoFi vs. OppFi: Which Fintech Stock Should Investors Consider Buying?
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Key Takeaways
OppFi and SoFi both lend via fintech, but target subprime vs. prime and near-prime borrowers.
OPFI's revenues grew 8.3% y/y and net income soared 165% in Q1'26, with a steady 79% auto-approval rate.
SoFi's Q1'26 revenues rose 41% on Pay, stablecoin and crypto relaunch, but dilution risks remain concerning.
Both OppFi Inc. (OPFI - Free Report) and SoFi Technologies (SOFI - Free Report) operate within the fintech lending space.
While SOFI is a one-stop shop digital financial services platform, it serves prime and near-prime borrowers. OppFi specializes in tech-fueled consumer credit solutions, targeting subprime borrowers.
We have analyzed both fintech credit stocks to determine which stock investors should add to their portfolios.
The Case for OPFI
In the first quarter of 2026, OPFI registered an 8.3% year-over-year rise in its top line while net income skyrocketed 165%. This disproportionate increase in revenues and profitability underscores the company’s operational efficiency. The most prominent factor behind this solid growth can be attributed to the consistency in the auto-approval rate of 79%. The company managed to optimize year-over-year expense growth to 7.5%, leading to a sharp margin expansion, which is key to the company’s scalability.
OppFi’s credit risk management apparatus adds to its strength. The Model 6.1 refit is a vital cog to the company’s risk pricing precision machinery. Satisfactory results have been noted as net charge-offs as a percentage of total revenues declined to 42.5% from the 45% reported in the preceding quarter. Similarly, net charge-offs as a percentage of average receivables dipped to 55.5% from the preceding quarter’s 59%. These metrics are a testament to the company’s ability to cater to the high-risk borrower segment while reducing credit risks.
Management stated that early indicators from the Loan Origination Lending Application (“LOLA”) deliver confidence in improving funnel metrics, raise automated approvals, enhance efficiency in servicing and recoveries, incorporate major systems, deliver low cycle times and better throughput for its product, tech and risk teams. We are optimistic about LOLA’s ability to boost revenue growth and promote scalability.
OppFi’s prudent credit assessment, combined with rising automation, positions the company to drive profitability while scaling loan volumes, which is vital to the dynamic lending environment.
The Case for SOFI
SoFi banks on its ability to innovate to stay ahead in the competition. SoFi Pay allows fast and low-cost international payments via blockchain technology, providing ground for global financial connectivity. The launch of SoFi USD stablecoin reveals the company’s intent to incorporate blockchain solutions into mainstream financial services. Banking on these innovations, the company witnessed 41% year-over-year growth in its top line in the first quarter of 2026.
SOFI relaunched its crypto trading platform, which boosted renewed investor interest in cryptocurrencies. The rollout of SoFi Coach, targeted to deliver bespoke financial insights across customer accounts, bolstered the company’s value proposition as a one-stop shop for financial services.
The company improved customer engagement on the back of its SoFi Smart Card, which offers cashback rewards on food purchases alongside credit-building tools and access to competitive borrowing and deposit rates. These initiatives strengthen stickiness of the ecosystem, expanding wallet share and building brand loyalty.
Meanwhile, we acknowledge the fact that SOFI’s rapid scaling dictates large amounts of capital to fund loan originations. This growth has relied on capital-raising activities, including the issuance of convertible senior notes. Although these capital injections reduce the risks of liquidity bottlenecks, they raise dilution risks for common stockholders.
SOFI faces fierce competition from neo-banks and mega-banks. Digital-first platforms, including Chime and Robinhood, challenge SoFi’s High-Yielding Savings Account APY rates. If the company faces an APY price war, SoFi’s funding costs can surge, which would compress its net interest margin. Mega-banks, including Bank of America and Citi, not only have reached the digital capability mark but also possess enough marketing budget to match any digital product introduced by SoFi. It could easily topple SOFI’s balance between growth and profitability.
How Do Estimates Compare for OPFI & SOFI?
The Zacks Consensus Estimate for OPFI’s 2026 sales and EPS indicates year-over-year rallies of 11% and 13.2%, respectively. One EPS estimate has been trending upward over the past 60 days versus no downward adjustment.
OPFI: Trend in Estimate Revision
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SOFI’s 2026 sales and EPS indicates year-over-year growth of 29.1% and 51.3%, respectively. One EPS estimate has been trending upward over the past 60 days versus five downward adjustments.
SOFI: Trend in Estimate Revision
Image Source: Zacks Investment Research
OPFI Looks Cheaper Than SOFI
OPFI is currently trading at a forward 12-month P/E ratio of 4.04X, which is lower than the 12-month median of 6.26X. SOFI is trading at 23.65X, which is below the 12-month median of 45.81X. While both stocks are trading at a discount compared with their historical valuations, OPFI appears way cheaper than SOFI.
Image Source: Zacks Investment Research
Final Verdict: Buy OPFI, Exit SOFI Now
OppFi presents a compelling buy case due to its soaring profitability and undervaluation. The company ended the first quarter of 2026 with net income skyrocketing 165% year over year and the credit risk metric improving significantly from the preceding quarter. These are clear indications of the company’s ability to scale efficiently while mitigating the inherent credit risks.
Conversely, we urge investors who are holding SOFI to sell it off now and potential buyers are recommended to wait and watch. Although the company recorded impressive top-line gains in the first quarter of 2026, its motives to scale vigorously attract dilution risks. Moreover, the APY price wars from the neo-banks and mega-banks’ ability to challenge SOFI’s digital prowess is a massive threat to the company’s margins. These risks collectively cannot justify SoFi’s premium valuation.
OPFI carries a Zacks Rank #2 (Buy), while SOFI has a Zacks Rank #4 (Sell) at present.
View the Zacks #1 Rank List
Image: Bigstock
SoFi vs. OppFi: Which Fintech Stock Should Investors Consider Buying?
Key Takeaways
Both OppFi Inc. (OPFI - Free Report) and SoFi Technologies (SOFI - Free Report) operate within the fintech lending space.
While SOFI is a one-stop shop digital financial services platform, it serves prime and near-prime borrowers. OppFi specializes in tech-fueled consumer credit solutions, targeting subprime borrowers.
We have analyzed both fintech credit stocks to determine which stock investors should add to their portfolios.
The Case for OPFI
In the first quarter of 2026, OPFI registered an 8.3% year-over-year rise in its top line while net income skyrocketed 165%. This disproportionate increase in revenues and profitability underscores the company’s operational efficiency. The most prominent factor behind this solid growth can be attributed to the consistency in the auto-approval rate of 79%. The company managed to optimize year-over-year expense growth to 7.5%, leading to a sharp margin expansion, which is key to the company’s scalability.
OppFi’s credit risk management apparatus adds to its strength. The Model 6.1 refit is a vital cog to the company’s risk pricing precision machinery. Satisfactory results have been noted as net charge-offs as a percentage of total revenues declined to 42.5% from the 45% reported in the preceding quarter. Similarly, net charge-offs as a percentage of average receivables dipped to 55.5% from the preceding quarter’s 59%. These metrics are a testament to the company’s ability to cater to the high-risk borrower segment while reducing credit risks.
Management stated that early indicators from the Loan Origination Lending Application (“LOLA”) deliver confidence in improving funnel metrics, raise automated approvals, enhance efficiency in servicing and recoveries, incorporate major systems, deliver low cycle times and better throughput for its product, tech and risk teams. We are optimistic about LOLA’s ability to boost revenue growth and promote scalability.
OppFi’s prudent credit assessment, combined with rising automation, positions the company to drive profitability while scaling loan volumes, which is vital to the dynamic lending environment.
The Case for SOFI
SoFi banks on its ability to innovate to stay ahead in the competition. SoFi Pay allows fast and low-cost international payments via blockchain technology, providing ground for global financial connectivity. The launch of SoFi USD stablecoin reveals the company’s intent to incorporate blockchain solutions into mainstream financial services. Banking on these innovations, the company witnessed 41% year-over-year growth in its top line in the first quarter of 2026.
SOFI relaunched its crypto trading platform, which boosted renewed investor interest in cryptocurrencies. The rollout of SoFi Coach, targeted to deliver bespoke financial insights across customer accounts, bolstered the company’s value proposition as a one-stop shop for financial services.
The company improved customer engagement on the back of its SoFi Smart Card, which offers cashback rewards on food purchases alongside credit-building tools and access to competitive borrowing and deposit rates. These initiatives strengthen stickiness of the ecosystem, expanding wallet share and building brand loyalty.
Meanwhile, we acknowledge the fact that SOFI’s rapid scaling dictates large amounts of capital to fund loan originations. This growth has relied on capital-raising activities, including the issuance of convertible senior notes. Although these capital injections reduce the risks of liquidity bottlenecks, they raise dilution risks for common stockholders.
SOFI faces fierce competition from neo-banks and mega-banks. Digital-first platforms, including Chime and Robinhood, challenge SoFi’s High-Yielding Savings Account APY rates. If the company faces an APY price war, SoFi’s funding costs can surge, which would compress its net interest margin. Mega-banks, including Bank of America and Citi, not only have reached the digital capability mark but also possess enough marketing budget to match any digital product introduced by SoFi. It could easily topple SOFI’s balance between growth and profitability.
How Do Estimates Compare for OPFI & SOFI?
The Zacks Consensus Estimate for OPFI’s 2026 sales and EPS indicates year-over-year rallies of 11% and 13.2%, respectively. One EPS estimate has been trending upward over the past 60 days versus no downward adjustment.
OPFI: Trend in Estimate Revision
The Zacks Consensus Estimate for SOFI’s 2026 sales and EPS indicates year-over-year growth of 29.1% and 51.3%, respectively. One EPS estimate has been trending upward over the past 60 days versus five downward adjustments.
SOFI: Trend in Estimate Revision
OPFI Looks Cheaper Than SOFI
OPFI is currently trading at a forward 12-month P/E ratio of 4.04X, which is lower than the 12-month median of 6.26X. SOFI is trading at 23.65X, which is below the 12-month median of 45.81X. While both stocks are trading at a discount compared with their historical valuations, OPFI appears way cheaper than SOFI.
Final Verdict: Buy OPFI, Exit SOFI Now
OppFi presents a compelling buy case due to its soaring profitability and undervaluation. The company ended the first quarter of 2026 with net income skyrocketing 165% year over year and the credit risk metric improving significantly from the preceding quarter. These are clear indications of the company’s ability to scale efficiently while mitigating the inherent credit risks.
Conversely, we urge investors who are holding SOFI to sell it off now and potential buyers are recommended to wait and watch. Although the company recorded impressive top-line gains in the first quarter of 2026, its motives to scale vigorously attract dilution risks. Moreover, the APY price wars from the neo-banks and mega-banks’ ability to challenge SOFI’s digital prowess is a massive threat to the company’s margins. These risks collectively cannot justify SoFi’s premium valuation.
OPFI carries a Zacks Rank #2 (Buy), while SOFI has a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.