SoFi vs. OppFi: Which Fintech Stock Looks More Compelling Right Now?

Core Insights - SoFi Technologies (SOFI) and OppFi Inc. (OPFI) are both players in the fintech lending sector, with SOFI focusing on prime and near-prime borrowers while OPFI targets subprime borrowers [1] Group 1: SoFi Technologies (SOFI) - SoFi continues to innovate, recently launching SoFi Pay for low-cost international payments and a USD stablecoin, indicating a push towards blockchain integration in financial services [2] - The relaunch of SoFi's crypto trading platform aligns with increased investor interest in cryptocurrencies, while the introduction of SoFi Coach aims to provide personalized financial insights [3] - The SoFi Smart Card offers cash-back rewards and credit-building tools, enhancing customer engagement and brand loyalty [4] - Marketing partnerships, such as with NFL MVP Josh Allen, are increasing SoFi's brand visibility among younger consumers [5] - The acquisition of Galileo Financial Technologies has strengthened SoFi's fintech infrastructure, enabling better payment processing and AI-driven engagement tools [6][7] - The integration of Galileo's technology with SoFi's products enhances operational efficiency and innovation, creating a structural advantage [8] Group 2: OppFi Inc. (OPFI) - OppFi's financial performance is driven by its AI and machine-learning-based underwriting engine, Model 6, which has led to significant profitability growth [9] - In Q3 2025, OppFi reported a 136.9% year-over-year increase in net income, while revenues grew by 13.5%, highlighting the efficiency of its business model [10] - The company's auto-approval rate reached 79.1%, improving operational efficiency and leading to a 79% growth in adjusted EPS [11] - OppFi's Model 6.1 upgrade aims to enhance risk pricing precision, with early results showing a decline in net charge-offs [12] - The Loan Origination Lending Application (LOLA) is expected to further improve scalability and operational efficiency, with testing underway [13][14] - OppFi's disciplined credit assessment combined with rising automation positions it well for profitability in a volatile lending environment [15] Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for SOFI indicates a 36.8% growth in sales and a 146.7% increase in EPS for 2025 [16] - SOFI's current quarter sales estimate is $981.89 million, with a year-over-year growth estimate of 32.85% [17] - The Zacks Consensus Estimate for OPFI shows a 13.6% increase in sales and a 65.3% rise in EPS for 2025 [19] - OPFI's current quarter sales estimate is $159.75 million, with a year-over-year growth estimate of 17.71% [20] - OPFI is trading at a forward P/E ratio of 5.78X, significantly lower than SOFI's 41.91X, indicating that OPFI appears cheaper [22] Group 4: Comparative Analysis - SoFi is viewed as the more compelling investment due to its diversified, platform-driven model that supports balanced growth across cycles [23] - OppFi's efficiency gains are notable, but its business is more closely tied to subprime credit conditions, which may increase risk during economic stress [23]