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SoFi vs. Chime: Which Fintech Stock is the Better Buy Right Now?
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Key Takeaways
SoFi and Chime pursue different banking models, with lending scale and customer engagement driving growth.
SoFi's $46 billion deposit base contrasts with Chime's 20% growth in active members in the second quarter.
Chime's rising margins and proposed Stride Bank deal rival SoFi's lending scale and expanding services.
Digital banking is no longer just about replacing a branch with an app. Both SoFi Technologies (SOFI - Free Report) and Chime Financial (CHYM - Free Report) want to make money management simpler, while growing the number of products consumers use and the revenue each relationship generates. Both lean on technology, low-friction onboarding and benefits that encourage customers to make them their financial account.
The differences begin with how they earn that relationship. SoFi operates a nationally chartered bank and combines personal, student and home lending with deposits, investing, technology services and an expanding digital-asset business. Chime has traditionally relied on partner banks and focuses on payments, direct deposits and affordable short-term liquidity for mainstream consumers. Its planned acquisition of Stride Bank could bring operations under one roof.
SoFi offers breadth and established lending scale; Chime offers a more focused route to engagement. For investors, the question is how each model converts growth into durable profits.
The Case for SOFI
SoFi's strongest advantage is the range of financial needs it can address within one app. Members can borrow, save, invest and spend without moving between providers. That creates more opportunities to deepen relationships and spread acquisition costs across multiple products. In the second quarter, existing members accounted for 51% of new products opened, up from 35% a year earlier.
Owning SoFi Bank also gives the company control over deposit funding and lending economics, a benefit Chime is seeking through its proposed Stride deal. SoFi ended June with nearly $46 billion in deposits and originated $14.8 billion of loans during the quarter. Its loan platform business provides a fee-generating outlet for originations beyond loans retained on its balance sheet.
Meanwhile, SoFi is working to broaden revenues beyond lending. SoFi Plus crossed 200,000 paid subscribers, while new private-market funds from CAZ Investments and AngelList add investing choices. Its Mastercard stablecoin settlement rollout and Payward partnership could eventually build a larger role in commercial payments and digital-asset infrastructure.
Yet these initiatives also make execution more demanding. Stablecoin settlement is live, but its future earnings contribution is uncertain. Private-market investing introduces liquidity and suitability considerations. Meanwhile, credit losses, interest-rate changes and fair-value adjustments can influence lending returns even when underwriting performance remains sound.
These trade-offs matter when compared with Chime's simpler payments-led engine. SoFi's diversified platform and improving profitability offer support, but investors still need proof that newer businesses will translate into repeatable earnings without adding excessive risk.
The Case for CHYM
Chime's appeal rests on something simple: becoming the account people use when their paycheck arrives, and their bills come due. Frequent transactions create chances to earn payment revenues and introduce useful products without relying on a large traditional lending book. Unlike SoFi's broader financial supermarket, Chime builds outward from a recurring daily relationship.
That relationship is deepening. Active members reached 10.4 million in the second quarter, up 20% year over year, while average revenue per active member grew 6% to $260. Chime Prime, aimed at members with at least $3,000 in qualifying monthly direct deposits, generated more than twice the average member's revenue, showing the potential of stronger engagement.
Chime's short-duration liquidity products strengthen that model. MyPay originated $4.5 billion with a 0.9% loss rate, while Instant Loans originations increased nearly 70% sequentially. Expansion into Chime Invest and employer distribution through Chime Workplace, including Allied Universal, provides additional ways to attract and retain members.
The proposed $590 million acquisition of partner Stride Bank could be an important next step. Subject to regulatory approval, it would give Chime a national bank subsidiary, reduce partner and funding costs and streamline product launches. Management anticipates more than $100 million in net synergies, though integration and regulatory demands remain real.
Importantly, growth is starting to translate into profitability: adjusted EBITDA margin reached 15% in the second quarter. Chime subsequently raised its annual revenue outlook to $2.76-$2.77 billion. With engagement, new distribution channels and greater operating control working together, its earnings potential appears increasingly attractive.
How Do Estimates Compare for SOFI & CHYM?
The Zacks Consensus Estimate for SoFi’s 2026 and 2027 sales implies year-over-year growth of 35.52% and 20.21%, respectively. The consensus mark for 2026 and 2027 EPS suggests a year-over-year increase of 53.85% and 35.93%, respectively. Over the past month, estimates for SOFI’s 2026 and 2027 EPS have remained unchanged.
For SoFi Technologies:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Chime Financial’s 2026 and 2027 sales calls for year-over-year growth of 26.74% and 20.76%, respectively. The consensus estimates for both 2026 and 2027 EPS have been revised considerably upward over the past 60 days. The figures suggest a year-over-year increase of 110.54% and 114.98%, respectively.
For Chime Financial:
Image Source: Zacks Investment Research
Price Performance and Valuation of SOFI & CHYM
Over the past three months, Chime shares have risen 35.9%, while SoFi shares have declined 16.2%. In comparison, the S&P 500 composite has advanced 3.1% in the same time frame.
Image Source: Zacks Investment Research
SOFI is trading at a forward 12-month price-to-sales of 3.59X, which is below its one-year median of 4.63X.
Meanwhile, CHYM is presently trading at a forward 12-month price-to-sales of 3.41X, which is above its one-year median of 2.98X.
This valuation suggests that Chime does not require a meaningful premium despite its improving margins and potential Stride synergies. SoFi's faster expected revenue growth supports its multiple. However, investors must also weigh lending-related volatility and uncertainty around newer initiatives. Neither looks deeply discounted, making execution and earnings quality important deciding factors over the coming quarters.
Image Source: Zacks Investment Research
Conclusion
Both SoFi and Chime are making progress in the shift toward digital financial services, but they offer different paths to shareholder returns. SoFi has a mature banking infrastructure, multiple revenue streams and an expanding menu of investment and payment services. Those strengths justify staying invested, although lending sensitivity and uncertain returns from newer ventures argue against rushing to increase exposure.
Chime appears better positioned for fresh capital. Its recurring deposit relationships, improving customer monetization and rising margins offer a clearer near-term earnings story, while the Stride acquisition could extend its advantages. Execution risks remain, but Chime has the stronger investment case today.
View the Zacks #1 Rank List
Image: Shutterstock
SoFi vs. Chime: Which Fintech Stock is the Better Buy Right Now?
Key Takeaways
Digital banking is no longer just about replacing a branch with an app. Both SoFi Technologies (SOFI - Free Report) and Chime Financial (CHYM - Free Report) want to make money management simpler, while growing the number of products consumers use and the revenue each relationship generates. Both lean on technology, low-friction onboarding and benefits that encourage customers to make them their financial account.
The differences begin with how they earn that relationship. SoFi operates a nationally chartered bank and combines personal, student and home lending with deposits, investing, technology services and an expanding digital-asset business. Chime has traditionally relied on partner banks and focuses on payments, direct deposits and affordable short-term liquidity for mainstream consumers. Its planned acquisition of Stride Bank could bring operations under one roof.
SoFi offers breadth and established lending scale; Chime offers a more focused route to engagement. For investors, the question is how each model converts growth into durable profits.
The Case for SOFI
SoFi's strongest advantage is the range of financial needs it can address within one app. Members can borrow, save, invest and spend without moving between providers. That creates more opportunities to deepen relationships and spread acquisition costs across multiple products. In the second quarter, existing members accounted for 51% of new products opened, up from 35% a year earlier.
Owning SoFi Bank also gives the company control over deposit funding and lending economics, a benefit Chime is seeking through its proposed Stride deal. SoFi ended June with nearly $46 billion in deposits and originated $14.8 billion of loans during the quarter. Its loan platform business provides a fee-generating outlet for originations beyond loans retained on its balance sheet.
Meanwhile, SoFi is working to broaden revenues beyond lending. SoFi Plus crossed 200,000 paid subscribers, while new private-market funds from CAZ Investments and AngelList add investing choices. Its Mastercard stablecoin settlement rollout and Payward partnership could eventually build a larger role in commercial payments and digital-asset infrastructure.
Yet these initiatives also make execution more demanding. Stablecoin settlement is live, but its future earnings contribution is uncertain. Private-market investing introduces liquidity and suitability considerations. Meanwhile, credit losses, interest-rate changes and fair-value adjustments can influence lending returns even when underwriting performance remains sound.
These trade-offs matter when compared with Chime's simpler payments-led engine. SoFi's diversified platform and improving profitability offer support, but investors still need proof that newer businesses will translate into repeatable earnings without adding excessive risk.
The Case for CHYM
Chime's appeal rests on something simple: becoming the account people use when their paycheck arrives, and their bills come due. Frequent transactions create chances to earn payment revenues and introduce useful products without relying on a large traditional lending book. Unlike SoFi's broader financial supermarket, Chime builds outward from a recurring daily relationship.
That relationship is deepening. Active members reached 10.4 million in the second quarter, up 20% year over year, while average revenue per active member grew 6% to $260. Chime Prime, aimed at members with at least $3,000 in qualifying monthly direct deposits, generated more than twice the average member's revenue, showing the potential of stronger engagement.
Chime's short-duration liquidity products strengthen that model. MyPay originated $4.5 billion with a 0.9% loss rate, while Instant Loans originations increased nearly 70% sequentially. Expansion into Chime Invest and employer distribution through Chime Workplace, including Allied Universal, provides additional ways to attract and retain members.
The proposed $590 million acquisition of partner Stride Bank could be an important next step. Subject to regulatory approval, it would give Chime a national bank subsidiary, reduce partner and funding costs and streamline product launches. Management anticipates more than $100 million in net synergies, though integration and regulatory demands remain real.
Importantly, growth is starting to translate into profitability: adjusted EBITDA margin reached 15% in the second quarter. Chime subsequently raised its annual revenue outlook to $2.76-$2.77 billion. With engagement, new distribution channels and greater operating control working together, its earnings potential appears increasingly attractive.
How Do Estimates Compare for SOFI & CHYM?
The Zacks Consensus Estimate for SoFi’s 2026 and 2027 sales implies year-over-year growth of 35.52% and 20.21%, respectively. The consensus mark for 2026 and 2027 EPS suggests a year-over-year increase of 53.85% and 35.93%, respectively. Over the past month, estimates for SOFI’s 2026 and 2027 EPS have remained unchanged.
For SoFi Technologies:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Chime Financial’s 2026 and 2027 sales calls for year-over-year growth of 26.74% and 20.76%, respectively. The consensus estimates for both 2026 and 2027 EPS have been revised considerably upward over the past 60 days. The figures suggest a year-over-year increase of 110.54% and 114.98%, respectively.
For Chime Financial:
Image Source: Zacks Investment Research
Price Performance and Valuation of SOFI & CHYM
Over the past three months, Chime shares have risen 35.9%, while SoFi shares have declined 16.2%. In comparison, the S&P 500 composite has advanced 3.1% in the same time frame.
Image Source: Zacks Investment Research
SOFI is trading at a forward 12-month price-to-sales of 3.59X, which is below its one-year median of 4.63X.
Meanwhile, CHYM is presently trading at a forward 12-month price-to-sales of 3.41X, which is above its one-year median of 2.98X.
This valuation suggests that Chime does not require a meaningful premium despite its improving margins and potential Stride synergies. SoFi's faster expected revenue growth supports its multiple. However, investors must also weigh lending-related volatility and uncertainty around newer initiatives. Neither looks deeply discounted, making execution and earnings quality important deciding factors over the coming quarters.
Image Source: Zacks Investment Research
Conclusion
Both SoFi and Chime are making progress in the shift toward digital financial services, but they offer different paths to shareholder returns. SoFi has a mature banking infrastructure, multiple revenue streams and an expanding menu of investment and payment services. Those strengths justify staying invested, although lending sensitivity and uncertain returns from newer ventures argue against rushing to increase exposure.
Chime appears better positioned for fresh capital. Its recurring deposit relationships, improving customer monetization and rising margins offer a clearer near-term earnings story, while the Stride acquisition could extend its advantages. Execution risks remain, but Chime has the stronger investment case today.
While SOFI carries a Zacks Rank #3 (Hold), CHYM sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.