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Chime vs. SoFi: Which Fintech Stock Is the Better Buy in 2025?
The fintech sector has regained momentum in 2025, fueled by recent initial public offerings (IPOs) from Chime Financial (NASDAQ: CHYM) and Circle (NYSE: CRCL). With SoFi Technologies (NASDAQ: SOFI) and Chime both operating as digital banking platforms, investors are weighing which neobank offers the better investment opportunity. This analysis, drawing on operational and valuation perspectives, compares Chime and SoFi to identify the stronger fintech stock as of June 22, 2025.
Overview
SoFi Technologies, founded in 2011, evolved from a student loan refinancing provider into a full-service online bank with a national bank charter since 2022. It serves 10.9 million customers with products including checking/savings accounts, loans, credit cards, investing, mortgages, and insurance. SoFi’s financial services productivity loop emphasizes cross-selling to increase customer lifetime value, competing with traditional banks like JPMorgan Chase and Wells Fargo.
Chime Financial, established in 2012, focuses on low-fee banking for underserved consumers. Not a bank itself, Chime partners with FDIC-insured institutions to offer checking/savings accounts, a Credit Builder card, and early direct deposit. With 8.6 million active users, Chime generates revenue primarily through interchange fees. Its IPO on June 12, 2025, valued the company at $13.5 billion, sparking comparisons with SoFi.
Financial and Operational Comparison
The table below summarizes key financial metrics and performance indicators for SoFi and Chime as of June 18, 2025:
| Category | SoFi | Chime |
|---|---|---|
| Revenue (Trailing 12 Months) | $2.8 billion | $1.8 billion |
| Members | 10.9 million | 8.6 million |
| 3-Year Membership CAGR | 41.3% | 22.3% |
| Net Income (Trailing 12 Months) | $482 million | ($28.3 million) |
| Market Capitalization | $17 billion | $10.6 billion |
| Price-to-Sales (P/S) Ratio | 5.9 | ~5.9 (estimated) |
| Price-to-Earnings (P/E) Ratio | 32.9 | N/A (not profitable) |
Data Source: SoFi Investor Relations, Chime S-1 Filing, Motley Fool (June 22, 2025)
SoFi’s Strengths
- Revenue and Scale: SoFi’s 1.8 billion, driven by a larger 10.9 million member base and 15.9 million products (1.4 products per user). Its 31.7% year-over-year revenue growth in Q1 2025 outpaces the S&P 500’s 4.8%.
- Profitability: SoFi achieved consistent profitability in Q1 2025, with 28.3 million loss. SoFi’s adjusted EPS surged 200% to 0.27–$0.28.
- User Growth: SoFi’s 41.3% three-year CAGR for member acquisition nearly doubles Chime’s 22.3%, enabling faster monetization and superior unit economics. Its diversified product offerings enhance customer retention and cross-selling.
- National Bank Charter: SoFi’s bank charter ensures FDIC insurance up to $2 million and subjects it to federal oversight, fostering institutional trust.
Chime’s Strengths
- IPO Momentum: Chime’s IPO priced at 43 (60% above IPO price) and closing at 13.5 billion. This 40% post-IPO gain reflects strong investor enthusiasm.
- User Engagement: Chime’s 8.6 million users show high engagement, with 66% gross margins and a focus on underserved demographics. Its simple business model—relying on interchange fees—is scalable.
- Accessibility: Chime’s no-fee model, SpotMe overdraft coverage (up to $200), and Credit Builder card appeal to consumers with limited credit histories. Its 2% flat APY on savings requires no conditions, unlike SoFi’s 3.8% APY with direct deposit requirements.
Challenges
- SoFi: Despite strong growth, SoFi’s P/S ratio of 5.9 (vs. S&P 500’s 3.1) and P/E ratio of 32.9 (vs. 26.9) suggest a premium valuation. Its debt-to-equity ratio of 19.8% is moderate but higher than desired, and past downturns saw SOFI stock drop 83.3% from 2021–2022. Some X posts highlight concerns about SoFi losing Chime’s processing business via its Galileo platform, potentially impacting tech platform revenue.
- Chime: Chime’s lack of profitability and reliance on interchange fees pose risks, especially if regulatory changes limit fee structures. Its post-IPO valuation of 42/share (per X posts) may be inflated given its negative net income. Analysts question whether Chime can sustain growth as customers age out or seek more sophisticated products.
Valuation Analysis
- SoFi: Trading at 20.40) based on its Q1 2025 revenue and Chime’s P/S ratio.
- Chime: At an estimated P/S ratio of ~5.9 (based on 10.6–$15.2 billion market cap), Chime’s valuation aligns with SoFi’s but lacks profitability. Its IPO hype may drive short-term gains, but long-term sustainability depends on achieving consistent earnings.
Market Sentiment
X posts reflect mixed sentiment:
- Bullish on SoFi: Users like @DataDInvesting argue SoFi’s faster growth and profitability warrant a higher valuation, especially compared to Chime’s IPO pricing. SoFi’s 95% stock gain over the past year outperforms the S&P 500.
- Bullish on Chime: @kylewhitegoat claims Chime’s IPO valuation (40/share) surpassed SoFi’s 10.6 billion for Chime).
- Concerns: Some posts highlight SoFi’s loss of Chime’s Galileo business as a revenue risk, while others question Chime’s long-term viability due to its simplistic model.
Investment Verdict
SoFi Technologies emerges as the better fintech stock for long-term investors in 2025. Its superior revenue growth (1.8 billion), consistent profitability ($482 million net income), and faster member acquisition (41.3% CAGR vs. 22.3%) demonstrate a stronger operational foundation. SoFi’s diversified portfolio and national bank charter provide resilience against economic downturns and regulatory risks, unlike Chime’s interchange-fee reliance.
While Chime benefits from IPO momentum and appeals to underserved markets, its lack of profitability and narrower product scope limit its competitive edge. Chime’s valuation may see short-term gains, but its long-term growth hinges on achieving profitability and product expansion.
SoFi’s premium valuation (P/S 5.9, P/E 32.9) is justified by its earnings trajectory and technology-first platform, with analysts forecasting continued EPS growth (0.28 for 2025). Despite risks like high valuation and potential revenue loss from Galileo, SoFi’s track record and scale make it the clearer choice over Chime.
Recommendation: Buy SoFi Technologies (SOFI) for long-term growth in the fintech sector. Monitor Chime (CHYM) for short-term opportunities post-IPO, but prioritize SoFi for sustained returns.