OPFI vs. FUTU: Which Fintech Stock Is the Smarter Buy Right Now?

Core Insights - Both OppFi Inc. (OPFI) and Futu Holdings Limited (FUTU) are significant players in the fintech sector, with OPFI focusing on credit access for the underbanked and FUTU providing online brokerage and wealth management services [1] Summary of OppFi - OPFI targets the underbanked demographic, addressing their challenges in accessing credit from traditional banks [2] - In Q2 2025, OPFI reported a 12.8% year-over-year growth in revenue and a 13.8% increase in total net originations, driven by a customer-first and dynamic pricing strategy [3] - The company’s AI and machine learning-based Model 6 improved the loan auto approval rate to 80% from 76% year-over-year, enhancing service quality [3] - OPFI's credit quality strategy led to high customer satisfaction scores, with a net promoter score of 79 and a customer satisfaction score of 89% [4] - The company raised its 2025 revenue guidance to $578-$605 million and adjusted net income guidance to $125-$130 million [5] - Estimates indicate a 49.5% growth in EPS for OPFI in 2025 [9] Summary of Futu Holdings - FUTU operates as a fully digital platform with low fees, competing against traditional brokerage services [6] - In Q2 2025, FUTU experienced a 69.7% year-over-year revenue increase and a 1570-basis-point rise in operating margin [6] - Growth factors included increased funded accounts, robust trading volumes, and a 98% client retention rate [7] - AI plays a crucial role in FUTU's strategy, with tools like Futubull AI and moomoo AI enhancing global reach and investment offerings [8] - Total assets under management surged by 104.4% year-over-year as of Q2 [9] - Estimates suggest a 64.5% growth in EPS for FUTU in 2025 [13] Comparative Analysis - OPFI trades at a forward earnings multiple of 7.95, lower than its median of 8.55, while FUTU trades at 18.81, above its median of 15.87 [14] - OPFI is considered a smarter buy due to its focus on the underbanked market and competitive edge in credit access [16] - Despite both companies being fundamentally strong, OPFI's discounted valuation presents a more attractive opportunity for growth-focused investors [17]