Both Dave DAVE and SoFi Technologies SOFI operate within the fintech space and offer digital banking and financial services through mobile platforms. These companies target tech-savvy consumers who seek alternatives to traditional banks.

We have analyzed both stocks to find out which of these two fintech stocks provides an upside.

The Case for DAVE

Dave registered 47% year-over-year growth in its top line in the first quarter of 2026. The company demonstrated an efficient business model as it incurred customer acquisition costs of $18, flat with the year-ago quarter, coupled with a lofty 101% jump in its net income. This highly profitable business model helped the bottom line surge 64% year over year. The disproportionate rallies in revenues and profit highlighted Dave’s operational prowess, further justified by a 300-basis-point year-over-year expansion in adjusted EBITDA.

The company improved on the credit front as well. Dave’s CashAI v5.5, its proprietary credit mitigation apparatus, resulted in a record-low 28-day past-due rate of 1.69% despite a 37% year-over-year increase in ExtraCash originations, which could raise credit risks. Furthermore, the company maintained a solid credit profile amid an 18% year-over-year increase in monthly transacting members and successfully raised the net monetization rate to 5.1%, the highest level achieved over the past four years.

Dave’s customer-first strategy was solid, driving new member count 22% year over year to 695,000 in the first quarter of 2026. The company operates in an environment experiencing dynamic financial needs, evidenced by a dip in user demand for short-term liquidity during tax refund season. However, Dave was successful at keeping engagement intact, leading to a recovery in April with an average origination size of $214.

An efficient business model that boosts profitability, accompanied by strength in the credit mitigation strategy, allows the company to scale while maintaining its credit profile. Dave’s customer-first approach, which includes a simplified fee model, allows members to access credit faster and more easily than traditional banks, deepening customer relationships.

The Case for SOFI

In the first quarter of 2026, SOFI witnessed a 35% year-over-year increment in total members. The 1.1-million customer addition took the total to 14.7 million. The company added a record 1.8 million products, up 39% from the year-ago quarter, taking the total to 22.2 million.

Strong member addition, coupled with product additions, reflects the efficacy of SOFI’s customer-centric strategy. This strategy drove the top line 43% year over year, leading to an explosive 134% rise in adjusted net income. This growth trajectory signals strength in the company’s operations, which can be utilized by the company to scale its business.

SoFi Technologies managed to increase cross-buy to 43%, fueled by continued investment in brand building, hinting at a growing percentage of members who are adopting multiple products within the ecosystem. This drove SOFI’s unaided brand awareness to an all-time high of 10%. Enhancement in visibility positions SoFi Technologies to operate within a sustainable environment in the long run, which is vital to its competitive moat.

SOFI accelerated renewed investor interest in cryptocurrencies by relaunching its crypto trading platform. SoFi Coach, launched to provide bespoke financial insights across customer accounts, strengthened its value proposition as a one-stop shop for financial services. SoFi Smart Card enhanced customer engagement as well, offering cashback rewards on food purchases alongside credit-building tools and access to competitive borrowing and deposit rates.

While the company managed to improve its customer stickiness and strengthen its brand loyalty, it shoulders the pressure of rising interest rates affecting refinancing incentives. Student loan refinancing, which was considered to be the major long-term growth catalyst, faces slower momentum as customers delay refinancing decisions amid economic setbacks.

The company’s business model is sensitive to funding costs. With deposit competition intensifying across the banking sector, SOFI might find maintaining attractive rates for customers increasingly expensive. In the off chance that funding expenses rise faster than the loan yield, the net interest margin could take a hit, creating earnings pressure.

How Do Estimates Compare for DAVE & SOFI?

The Zacks Consensus Estimate for DAVE’s 2026 sales and EPS indicates year-over-year growth of 28.8% and 26%, respectively. Four EPS estimates have moved upward for 2026, with no downward revision over the past 60 days. For the same period, the consensus estimate for EPS rose 13.8%.

The Zacks Consensus Estimate for SOFI’s 2026 sales and EPS indicates year-over-year rallies of 29.8% and 51.3%, respectively. One EPS estimate for 2026 has moved north in the past 60 days against six southward revisions. During that period, the consensus mark for EPS has been flat at 59 cents.

DAVE Priced Lower Than SOFI

Dave is currently trading at a forward 12-month P/E ratio of 18.6 times, marginally lower than the 12-month median of 18.7 times. SoFi Technologies is trading at 25.8 times, substantially lower than the 12-month median of 45.8 times.

Add DAVE to Your Portfolio, Hold SOFI for Now

Dave’s explosive first-quarter 2026 performance was marked by hefty top and bottom-line growth, displaying high profitability in its core operations. It is impressive how the company managed to maintain a strong credit profile, leveraging CashAI v5.5 despite a significant upsurge in ExtraCash originations. Dave’s rising membership count despite seasonal setbacks hints at robust customer engagement.

SoFi Technologies' top and bottom-line growth took a similar trajectory to that of Dave’s. SOFI’s customer-centric approach involved the launch of SoFi Coach and SoFi Smart Card, which promote the company’s ability to become the one-stop shop for financial services. However, the company shoulders the pressure of rising interest rates and high sensitivity to funding costs. These lingering headwinds could delay refinancing and create earnings pressure.

While both companies hold solid top and bottom-line prospects, DAVE trades significantly cheaper than SoFi Technologies. Therefore, we urge investors to add Dave to their portfolios, while a wait-and-see approach is a must for SOFI.

DAVE flaunts a Zacks Rank #1 (Strong Buy), whereas SOFI carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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