Better Fintech Stock for Growth Investors: Nu Holdings vs. SoFi

Investing at the crossroads of financial services and technology can be an exciting way to allocate capital. And there might be no two companies grabbing the attention of the investment community quite like Nu Holdings (NYSE: NU) and SoFi Technologies (NASDAQ: SOFI).

Their share prices have been under pressure in 2026. But these fintech stocks have outperformed the S&P 500 index in the past three years. For growth investors looking to score huge returns, which of these businesses is the better buy right now?

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Nu Holdings thrives thanks to robust unit economics

Nu's growth gets a lot of attention, which isn't surprising. The company's revenue totaled $16.3 billion in 2025. This was up 240% compared to 2022, thanks to a burgeoning customer base. As of March 31, Nu counted 135 million customers, of which 115 million are in Brazil, 15 million are in Mexico, and 5 million are in Colombia. And the business plans to commence operations in the U.S. next year.

Revenue growth has spurred impressive bottom-line performance. Net income surged 41% year over year in Q1 2026. But investors must dig deeper to understand why the business has become so profitable. It comes down to unit economics. Nu generates $15.90 in revenue per active customer, which is significantly higher than the $1 it costs to serve them.

Another factor that is easy to overlook is that Nu doesn't operate any physical bank branches. As a result, it completely avoids the overhead costs associated with it. By running a leaner business model compared to traditional banks, the company can support its bottom line.

Nu's valuation is too hard to ignore. Shares trade 30% below their late January peak (as of May 29). And investors can now buy the stock at a forward price-to-earnings (P/E) ratio of 18.3.

SoFi Technologies continues to focus on innovation

Shares of SoFi have also taken it on the chin. They are 43% off their record, which was set in November last year. Whether it's fears about a possible recession and the impact it could have on the company's financials, disruption from artificial intelligence (AI) displacing knowledge workers, or a March short report calling SoFi's accounting practices into question, investors have had a lot to think about recently.

But now, the valuation has gotten more attractive. This stock can be purchased at a forward P/E multiple of 30.4. This is obviously not as cheap as Nu, but the fundamentals might convince investors to take a closer look.

Like Nu, SoFi is also a fully digital bank and it is focused on the U.S. market, a favorable setup that has propelled earnings in recent years. In 2025, adjusted net income soared 112% compared to 2024. Management projects this figure to rise 72% this year. And between 2025 and 2028, the forecast calls for adjusted earnings per share (EPS) to increase 40% (at the midpoint) on an annualized basis.

SoFi will continue to lean on its ability to innovate, which has become a strength. The business is leveraging AI to improve the personal loan experience, while launching blockchain-based solutions to better serve its users. This will support ongoing success.

Picking a winner is not easy

Nu and SoFi are exciting fintech enterprises that are both operating at a high level, despite what their share prices might suggest. They both present solid opportunities for long-term investors, in my view, so picking a single winner isn't an easy task.

Valuation is a critical variable, however. And since Nu trades at a 40% discount to SoFi, I think it's the better stock to buy. It will also certainly cater to growth investors. According to analyst estimates, Nu's diluted EPS will grow at a compound annual rate of 35.1% between 2025 and 2028. This creates a wonderful setup to achieve adequate returns.

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