Better Fintech Stock: SoFi Technologies vs. Robinhood Markets

Dan Victor, The Motley Fool

Sat, Jun 7, 2025, 12:41 PM 5 min read

• SoFi Technologies' earnings growth is accelerating as it benefits from its expanding slate of personal finance solutions.

• Shares of Robinhood Markets have hit a new all-time high thanks to its strong growth outlook and improved financial position.

• 10 stocks we like better than SoFi Technologies ›

Digital bank SoFi Technologies (NASDAQ: SOFI) and online brokerage Robinhood Markets (NASDAQ: HOOD) both leverage their innovative platforms to disrupt the traditional financial services sector. Their strong growth rates have translated into impressive returns: Shares of SoFi are up 95% in the past year, while Robinhood stock has climbed by a remarkable 246%. After such large gains, some investors may wonder if they can keep their rallies going.

Let's consider which of these fintech leaders is a better buy for your portfolio today.

SoFi Technologies has transformed from a student and personal loans specialist into a comprehensive financial services platform. Its digital-first, one-stop shop approach resonates with consumers. Today, it serves 10.9 million members, nearly twice as many as it served just two years ago.

In the first quarter -- in what CEO Anthony Noto described as a "tremendous start to 2025" -- SoFi's adjusted net revenue surged 33% year over year while adjusted earnings per share (EPS) climbed 200% to $0.06. The bank's success reflects its ongoing diversification beyond lending products into more fee-based services, as its members are increasingly utilizing more of its banking accounts, credit cards, investing options, and other financial products.

SoFi is now positioned for more consistently profitable growth and high-quality cash flows. Management expects the positive trends to continue: It's targeting full-year adjusted EPS of $0.27 to $0.28 -- nearly double the $0.15 result in 2024. This outlook highlights a key advantage of SoFi over Robinhood Markets, which faces greater earnings uncertainty, as its business is still tied to transaction volumes and shifting financial market conditions.

Investors who are confident in SoFi's ability to execute its growth strategy and capture more market share from legacy banks have compelling reasons to buy and hold the stock for the long term.

As robust as SoFi's operating and financial results have been, Robinhood's recent momentum has been even stronger.

In the first quarter, net revenue increased 50% while EPS more than doubled to $0.37 from $0.17 in the prior-year period. The company that redefined retail investing with its pioneering commission-free trading model is capitalizing on its 25.8 million funded accounts, where users are trading more actively and directing more of their total assets to the platform.