Sofi Technologies is accelerating because it benefits from the list of expanding personal financing solutions.
Robinhood Markets has reached the highest new level ever thanks to strong growth expectations and improving financial situation.
10 shares we love better than Sofi ›
Digital Bank Sufi techniques(Nasdak: Sophie) And online mediation RobinHood Markets(Nasdak: Hood) They both benefit from their innovative platforms to disrupt the traditional financial services sector. Strong growth rates were translated into impressive returns: SOFI shares increased by 95 % last year, while RobinHood shares increased by 246 %. After such big gains, some investors may wonder whether they can continue their gatherings.
Let’s think about any Fintech leaders is the best purchase of your wallet today.
Photo source: Getty Images.
Sofi Technologies of a student and personal loan specialist has turned into a comprehensive financial services platform. His first digital approach, and the longing store with consumers is hesitant. Today, it serves 10.9 million members, or nearly twice their number only two years ago.
In the first quarter – in what CEO Anthony Nuto described as “a tremendous beginning until 2025” – 33 % net Sofi revenue increased by 33 % on an annual basis, while the equivalent profits of the share (EPS) increased by 200 % to $ 0.06. The bank’s success reflects its continuous diversification beyond lending products to more fees -based services, as its members are increasingly using more bank accounts, credit cards, investment options and other financial products.
Sofi is now placed for more constantly profitable growth and high -quality cash flows. The administration expects the positive trends to continue: it aims to profit the amended arrow throughout the whole year from $ 0.27 to $ 0.28-nearly twice the result is $ 0.15 in 2024. This view highlights a major advantage of Sofi on the Robinhood markets, which face the largest number of profits in profits, as its business is still linked to the transaction volumes and financial market conditions.
Investors who trust Sofi’s ability to implement their growth strategy and capture more share in the market from old banks have convincing reasons for buying and keeping stocks in the long run.
Although Sofi’s practical and financial results, the last Robinhood momentum was stronger.
In the first quarter, net revenue increased by 50 % while the profitability of the stock increased more than twice to $ 0.37 from $ 0.17 in the previous year period. The company, which re -defining the investment in retail, takes advantage of the pioneering trading model in the field of trading in its accounts of 25.8 million, as users trade more active and direct more of their assets to the statute.
A lot of growth story stems from the cryptocurrency market mutation. Crypto now represents 43 % of the total volume of transactions in the statute and contributes 27 % of the total revenue. However, Robinhood Markets also diversifies its products and services offers through the professional trading tools, banking solutions, wealth management options, and the Bremium Robinhood Gold subscription, all increases the company’s customer portfolio share. Wall Street chanted from Robenol, as the shares were sent by 94 % on the basis of the year to the highest level that exceeded the peak of the epidemic that I set in 2021.
Robinhood aims to repeat its success in the United States as it expands worldwide. It plans to launch the service in the Asia Pacific region, and enhances its presence in the area of digital assets by acquiring Crypto Exchange Bitstamp recently.
These international aspirations, compared to Sofi, can support more local and long -term growth, which helps to justify the evaluation of the stock installment. It is worth noting that both Robinhood and Sofi are trading in the price rates (P/E) near 50, indicating that the market optimism about their potential is somewhat equal.
Investors who take into account that Robinhood has just started on its way towards a dominant position in the internet mediation, making the arrow a part of a variety of wallets.
Hood PE ratio (forward) ycharts data.
Choose any of these is the best Fintech share for purchase now not easy. I am both optimistic and I expect that each of the positive returns will be achieved during the next year. If you have to choose only one to buy, I will give the edge to Sofi Technologies, which seems to provide a convincing opportunity to buy with stocks that still decrease about 27 % of its highest level in 52 weeks.
In my view, SOFI will benefit more than the background of the flexible macroeconomic economy, nourish the demand for lending and profit growth in the upcoming seasons, which will provide stimuli to stock higher. Meanwhile, Robinhood should be exposed to noble baked expectations at the price of her share after increasing the recent increase. The market hopes for the matter may be difficult to fulfill it, which may put the way to renew the fluctuation of stock prices.
Before buying shares in Sofi technologies, think about this:
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*The stock consultant dates back from June 2, 2025
Dan Victor has no position in any of the mentioned shares. There is no position in Motley Fool in any of the mentioned stocks. Motley Fool has a disclosure policy.
Best Fintech Stocks: Sofi Technologies was originally published versus Robinhood by Motley Fool
