It is a clash between two innovative giants and of great growth of financial technology (FINTECH). In a corner, Sofi technologies (Nasdaq: Sofi) It has become a prominent United States financial services actor who has a strong demand for its set of online solutions. On the other side, Now Holdings (NYSE: Now) It shares similarities through its digital native platform, but with a strategic approach to Latin America.

Both companies have been a big winner for investors in recent years and are already starting in 2025 with solid profitability so far. Let’s talk about whether Sofi or Nu Holdings are the best shares to buy now.

Sofi stands out for his comprehensive approach to personal finance, taking advantage of his experience experience, such as student loans, personal loans and mortgages, in a unique financial center. The company has expanded successfully to more traditional bank Services along with a wider range of financial products, including credit cards and investment options.

Recent trends have been impressive. According to the latest data, from the third quarter (finished September 30), it now has 9.4 million members, 35% more than last year. Members who may have initially hired a loan are adopting more and more financial services, promoting a growth flyer.

This dynamic was an important topic by 2024, with the EPS earnings (EPS) earnings of the third quarter, which reached $ 0.05, reversing the loss of $ 0.29 from the previous year. The company has benefited from the US -resistant economy as well as the relatively stable consumption credit conditions.

Sofi provides for income growth for 2024 of approximately 22.5% compared to 2023, an increase compared to its previous orientation of around 18%. In addition, the company has increased its EPS target for 2024 to $ 0.11 and $ 0.12, marking a significant turn with respect to the negative result of $ 0.36 last year.

Investors who trust the company’s ability to execute a long -term growth strategy and capture market share of the inherited banks have a great reason to buy the shares now.

For all points that make Sofi a potentially attractive investment, Nu Holdings actions are perhaps even more attractive. It is larger and serves 110 million customers in Brazil, Colombia and Mexico, and most use the platform as their main bank. The secular winds in the region, such as an expanding middle class and an increase in the penetration of smartphones, have driven exceptional growth.

In the third quarter of the Fintech, the revenue increased by 56% year -on -year on a Neutral Fax Base (FX). This is a reflection of the increasing base of customers and higher average income per active client as customers add more products and services within the ecosystem. The profitability has also been excellent, with a neutral net -adjusted net income in the third quarter, which reached $ 592 million, more than 356 million last year.

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In nominal value, Nu is a stronger growth value than Sofi, but a complete comparison is more nuanced. The bank’s profile as a foreign company introduces a certain level of risk, including unpredictable macroeconomic conditions. This could be one of the reasons why the shares are quoted at 19 times its annual consensus BPA as a price on a profits (P/e), a bargain related to Sofi’s actions, with its multiple of earnings of 73.

But other metrics draw a mixed image. Nu has a price value in the book (p/b) of 7.3, well above Sofi to 3.2, with this premium possibly based on its dominant position in Latin America.

Ultimately, investors who want to expose themselves to fintech tendencies in emerging markets may find that Nu Holdings are the best actions to possess.

It is a difficult task to choose between Sofi and Nu Holdings; Both are large companies well positioned to reward long -term shareholders.

If I would be forced to choose only one, I would give the advantage to Sofi Technologies as best actions by 2025. I think the fintech could have a higher performance in the middle of the recent interest rate cuts by the federal reserve and l ‘Optimism for a new cycle of consumption credit growth in the US strong The results of the next quarters could be the catalyst for the rise in the price of their actions.

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And Victor has no position in any of the actions mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a outreach policy.

Better Fintech Actions: Sofi Technologies vs. Naked holdings was originally published by The Motley Fool