XP vs NU

For growth investors, Nu Holdings Ltd.

(NU) is the stronger pick with 44. 8% revenue growth year-over-year, versus 34. 1% for XP Inc. (XP). XP Inc. (XP) offers the better valuation at 11. 3x trailing P/E (1. 7x forward), making it the more compelling value choice. Analysts rate XP Inc. (XP) a "Buy" — based on 9 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, XP Inc.

(XP) is the cheapest at 11. 3x versus Nu Holdings Ltd. at 35. 6x. On forward P/E, XP Inc. is actually cheaper at 1. 7x.

Over the past 5 years, Nu Holdings Ltd.

(NU) delivered a total return of +38. 0%, compared to -53. 2% for XP Inc. (XP). Over 10 years, the gap is even starker: NU returned +38. 0% versus XP's -39. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Nu Holdings Ltd.

(NU) is the lower-risk stock at 1. 37β versus XP Inc. 's 1. 67β — meaning XP is approximately 22% more volatile than NU relative to the S&P 500. On balance sheet safety, Nu Holdings Ltd. (NU) carries a lower debt/equity ratio of 12% versus 6% for XP Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Nu Holdings Ltd.

(NU) is pulling ahead at 44. 8% versus 34. 1% for XP Inc. (XP). On earnings-per-share growth, the picture is similar: Nu Holdings Ltd. grew EPS 90. 5% year-over-year, compared to 14. 9% for XP Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

XP Inc.

(XP) is the more profitable company, earning 22. 7% net margin versus 17. 8% for Nu Holdings Ltd. — meaning it keeps 22. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NU leads at 25. 2% versus -19. 7% for XP. At the gross margin level — before operating expenses — NU leads at 45. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, XP Inc.

(XP) trades at 1. 7x forward P/E versus 16. 4x for Nu Holdings Ltd. — 14. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NU: 43. 6% to $20. 48.

In this comparison, XP (4.

0% yield) pays a dividend. NU does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, XP Inc.

(XP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (4. 0% yield). Both have compounded well over 10 years (XP: -39. 2%, NU: +38. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

XP pays a dividend while NU does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.