SoFi Technologies Inc (NASDAQ: SOFI) and Robinhood Markets Inc (NASDAQ: HOOD) – both have been on a tear in recent months as the macro environment remained resilient, the crypto industry boomed, and the broader market recovered from the initial jerk following Trump’s tariff surprise.
Still, the case for keeping exposure to both for the long term remains strong as ever.
On the one hand, we have HOOD that tapped on blockchain technology this week to enable 24/7 stock trading in the EU – and on the other is SOFI that’s set to relaunch its crypto offerings later this year, including advanced products like crypto-collateralized loans, staking, and a stablecoin.
This leaves investors wondering which one of these two fintech stocks is a better buy for the back half of 2025.
Let’s explore several dimensions of that equation to draw a conclusion.
SoFi stock is relatively cheaper than Robinhood
Both SoFi stock and Robinhood Markets are trading at a premium valuation following their recent rally.
However, shares of the neobank are still relatively cheaper to own than the online brokerage at the time of writing.
The forward price-to-earnings multiple on SoFi Technologies currently sits at about 61, as per data from Barchart.
In comparison, HOOD shares are going for a forward ratio of nearly 69 on Tuesday.
Therefore, on a comparative basis, it’s fair to state that SoFi shares look more attractive to own for the second half of this year.
International expansion is a tailwind for HOOD shares
Financial strength is another great reason to invest in SoFi stock and Robinhood Markets this year.
Both companies came in handily above Street estimates in their latest reported quarters.
However, there’s one avenue where HOOD stock actually trumps SoFi Technologies – and that’s commitment to international expansion.
Robinhood wants to replicate the success it achieved in the US to foreign markets as it expands its footprint, while SOFI is a more domestically focused financial services company.
In the long run, that could translate to better top and bottom-line growth for the online brokerage, which may help justify its premium valuation.
Should you buy SOFI shares or HOOD stock?
Evidently, both Robinhood Markets and SOFI shares will likely deliver positive returns over the next year as they continue to roll out new products and add new users to their respective platforms.
It’s reasonable to assume that both fintech firms are only getting started in the broader financial services industry, which makes them suitable for a diversified portfolio.
Wall Street also currently rates HOOD stock and SoFi Technologies at “overweight” – with price targets going as high as $105 for Robinhood and $20 for SoFi shares.
All in all, given the current setup, SoFi appears to offer a slightly more compelling near-term entry point—but Robinhood may have the edge in long-term scalability.
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