SoFi Technologies (SOFI) and Robinhood Markets (HOOD) are two of America’s most popular fintech platforms competing for investor attention. Both stocks have rebounded in 2025, supported by better profitability and renewed interest from retail traders. But as competition heats up, which stock offers more upside for long-term investors? Let’s break it down.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
SoFi’s Full-Service Banking or Robinhood’s Investing Edge
SoFi operates as an all-in-one digital bank, offering a wide range of financial services under one platform. Robinhood, on the other hand, specializes in a simple, mobile-first investing experience that lets users trade stocks, options, and cryptocurrencies.
So far in 2025, Robinhood’s rally has been far stronger, fueled by rising trading volumes and expanding revenue streams. Notably, HOOD stock has surged nearly 300%, shedding its meme-stock image to become one of the year’s top fintech performers.
Meanwhile, SOFI stock is up about 64% year-to-date, supported by growth in its digital banking business and strong financial results.
Is SoFi a Good Buy Right Now?
In Q2 2025, SoFi posted strong growth, with adjusted net revenue climbing 44% year-over-year and adjusted EBITDA up 81% from last year. The company also added a record 850,000 new members, bringing total membership to 11.7 million.
The company’s growth is driven largely by its technology, which delivers a simple, user-friendly experience that sets it apart from traditional banks, while ongoing innovation with new products helps attract and retain customers. This year, SOFI plans to relaunch cryptocurrency trading and is teaming up with payments company Lightspark to provide fast, low-cost international money transfers using the Bitcoin network.
Looking ahead, investors remain optimistic, with fast growth, a growing member base, expanding product offerings, and a focus on fee-based revenue. However, Wall Street analysts are split, with the consensus suggesting caution and some risk of a pullback from current levels.
Is HOOD a Good Stock to Buy Now?
As of the end of Q2, Robinhood had 26.5 million customers and generated $989 million in revenue, marking a 45% year-over-year increase. In particular, cryptocurrency trading revenue surged 98% year-over-year, compared to Q2 2024.
While Robinhood continues to attract new customers, most of its growth now comes from stronger engagement among existing users. In Q2, average revenue per user rose 34%, with most earnings driven by higher account balances rather than new sign-ups. The company is also expanding its reach by introducing new products and services that resonate with its core audience, opening up a broader market opportunity.
For investors, Robinhood’s story is evolving beyond its retail roots, building a stronger, more stable business by serving all client types, even as market swings continue to impact short-term results.
Valuation Risks
Despite a bullish outlook, valuation remains a key consideration for both SOFI and HOOD stocks. HOOD trades at a high P/E of around 75, while SOFI’s P/E is 50.9, compared with the sector average of 13.25.
Many stocks are currently expensive due to the ongoing bull market, but high valuations leave little room for error. If these companies face one or two weak quarters, their share prices could fall sharply as investors shift to cheaper alternatives.
However, over the long term, what really matters is a company’s growth, and both of these companies are thriving in that area.
HOOD or SOFI: Which Stock Offers Higher Upside, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared HOOD and SOFI to see which fintech stock analysts favor. HOOD carries a Moderate Buy rating from analysts, while SOFI has a Hold rating. Both stocks have surged recently, and analysts see limited upside in the near term. SoFi’s average stock price target of $21.90 suggests about 14% downside. Robinhood has a price target of $134.06, implying a 10% downside.
Conclusion
In conclusion, both SoFi and Robinhood show strong growth potential, but in distinct ways. SoFi stands out for its expanding digital banking platform and steady earnings growth, while Robinhood capitalizes on its leading trading platform and new financial products to attract more investors. The choice comes down to whether you prefer banking-focused stability or trading-driven growth.
Source link
