Better Growth Stock: Nu Holdings vs. SoFi Technologies

Investing at the crossroads of financial services and technology can introduce some exciting opportunities. This is precisely the case with digital banks like SoFi Technologies (NASDAQ: SOFI) and Nu Holdings (NYSE: NU). The former's shares have surged 261% in the past three years (as of Feb. 12), while the latter's shares are up 182% during the same time.

Both have their fair share of positive attributes. But between these two growth stocks, which is the better one to add to your portfolio right now?

Image source: Getty Images.

Tapping a big opportunity in Latin America

Nu provides various banking products and services to people in Latin America, which presents it with a significant opportunity. This region has a large unbanked and underbanked population. But Nu is clearly thriving, with more than 60% of Brazil's adult population as customers. There are also 13 million and 4 million customers, respectively, in the newer markets of Mexico and Colombia.

The company's growth is not letting up. Nu's revenue surged 42% year over year in the third quarter to $4.2 billion. It has succeeded thanks to the rising penetration of smartphones and faster internet speeds, which provide the necessary infrastructure for expansion. Wall Street analysts estimate revenue will rise 123% between 2025 and 2028.

There are no bank branches to worry about, eliminating a significant operating expense. Consequently, Nu's profits have been soaring. The net income margin was 18.8% in the third quarter, up drastically from a net loss being posted in the same period of 2021. This is certainly an encouraging trend.

Nu collects $13.40 in monthly revenue per active customer. That's much higher than the average $0.90 cost to serve them. Superb unit economics like this, along with disciplined risk-management practices, support the company's impressive profitability. It wouldn't be surprising to see the bottom line keep up its momentum.

Investors can buy shares right now at a forward price-to-earnings (P/E) ratio of about 21. Based on Nu's incredible fundamentals, this deal might be too hard to pass up.

A focus on product innovation is driving notable growth

Like Nu, SoFi also runs a digital-only banking platform, with offerings ranging from various lending products all the way to checking and savings accounts and investment services. Growth from both net interest income and fee-based revenue is notable. Adjusted net revenue totaled $3.6 billion in 2025, up 38% year over year.

After adding a whopping 1 million net new customers in Q4, SoFi now has 13.7 million members. With a vast array of offerings, the business has the ability to cross-sell different products to its user base. This can also help to build stickiness, meaning customers avoid the hassle of switching banks.

SoFi stands out in a competitive industry because of how exceptional its user experience is. Even better, management has always prioritized product innovation in an effort to better serve customers. This is on full display. In the past few months, SoFi introduced fast and cheap blockchain-enabled cross-border payments, cryptocurrency trading, and a stablecoin. Chief Executive Officer Anthony Noto is extremely bullish on the impact blockchain technology will have on the world of finance.

The stock is relatively more expensive than Nu. SoFi shares currently trade at a forward P/E ratio of about 33. It might still make sense to pay up, however. That's because SoFi's bottom line is rapidly expanding. Adjusted net income climbed 112% in 2025, with company projections calling for a 72% jump in 2026. And the leadership team believes earnings per share will increase at a compound annual rate of 40% (at the midpoint of its forecast) between 2025 and 2028.

There's no need to pick just one

Instead of just picking one, the best move might be to buy shares in both Nu and SoFi, especially since they're both thriving. By owning these businesses, investors can gain access to high-growth opportunities that each cater to different markets. This can provide adequate exposure to exciting fintech stocks.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.