SoFi (SOFI) and Robinhood (NASDAQ:HOOD) are fintech companies that have the potential to generate significant long-term wealth for investors, despite their steep valuation metrics. Which stock is currently the better investment?.In recent years, companies part of the fintech industry have managed to grow revenue at stellar rates. COVID-19 further acted as a tailwind for these enterprises, making stocks such as SoFi (SOFI) and Robinhood (HOOD) interesting investments to consider.
SoFi operates an online platform that provides financial services including student loan refinancing, private student loans, auto loan refinance, mortgage loans, personal loans, investments as well as insurance products for homeowners, renters, automobiles, and others. Robinhood is a discount broker that aims to democratize the investing process. On its platform, investors are able to trade stocks, ETFs, options, and some cryptocurrencies.
Today I’ll analyze these two fintech companies to determine which is currently the better investment.