Robinhood vs. SoFi: Which Fintech Stock Is Better?

Robinhood Markets (NASDAQ: HOOD) and SoFi Technologies (NASDAQ: SOFI) have outperformed the S&P 500 this year due to strong demand for their financial products. SoFi's stock price has almost doubled this year, while Robinhood's share price has more than tripled.

Robinhood was the clear winner this year, but SoFi has a good shot at winning in 2026. Here's what you should know about both fintech companies heading into the New Year.

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Crypto transactions are critical for Robinhood's future growth

There's far more to Robinhood's business model than letting people trade crypto, but this segment makes it easier to justify the stock's 76 price-to-earnings (P/E) ratio.

Robinhood delivered tremendous third-quarter results, with revenue more than doubling year-over-year and net income jumping by 271%. Transaction revenue, net interest revenue, and "other revenues" all surged year over year, but transaction revenue is the most important.

That part of Robinhood's business surged by 129% year over year, making up $730 million of the fintech's $1.27 billion in total sales. Crypto transactions increased by more than 300% year over year, totaling $268 million. Demand for crypto trading has been a major catalyst for Robinhood, which will be important when assessing SoFi's long-term growth opportunities.

Comments from Robinhood CFO Jason Warnick imply that the fourth quarter will be another blowout. He told investors that the company experienced record monthly trading volumes in October. The record activity was across equities, options, prediction markets, and futures. Margin balances also hit all-time highs.

SoFi approaches 1 million members leading up to its new crypto offering

SoFi's numbers weren't as exciting as Robinhood's financial results, but they were still enough to beat the S&P 500 this year. The fintech company delivered 38% year-over-year revenue growth and more than doubled its net income.

However, revenue growth should accelerate significantly in 2026 due to two key factors. The first one is that SoFi is approaching 1 million members and continues to grow at a fast rate. More than 900,000 people use SoFi, and that figure is up by 35% year over year.

The second catalyst is that SoFi is bringing back crypto trading, which was discontinued in 2023 due to regulatory pressure. SoFi was trying to preserve its status as a chartered bank at the time.

Crypto trading was a big growth engine for the company, and this asset class has only become more popular. It's entirely possible that SoFi's revenue will double year over year in some 2026 quarters if cryptocurrencies remain hot. Crypto has been a big part of Robinhood's story, and it's now returning to SoFi's business model.

SoFi also has a lot of businesses that are already performing well. Its Money and Invest segments were up by 34% and 27% year over year, respectively, in Q3. Revenue from credit cards and referred loans surged by 48% and 85%. Crypto should give SoFi Invest a significant tailwind and make comparables easy for the company to beat.

The final verdict

Robinhood has grown faster than SoFi, but the tide may be shifting. SoFi's reentry into crypto is a seismic catalyst that changes its future. It's feasible for SoFi Invest revenue to more than double year over year, which would make the current price look like a bargain.

More crypto trading activity can also boost trading for equities and other assets that are available on SoFi. It's hard to imagine that crypto traders only trade crypto.

SoFi also trades at a 50 P/E ratio, which offers a better margin of safety than Robinhood's 76 P/E ratio. One major assumption is that SoFi's crypto trading will be widely adopted and become a growth driver, just as it was from 2019 to 2023.

Investors who are wary about SoFi's return to crypto trading may want to consider Robinhood, which is more established in crypto. Robinhood's investing products have also grown faster than SoFi Invest. The thesis behind SoFi outshining Robinhood primarily depends on crypto trading transactions.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.