XP vs NU vs MELI vs SOFI vs AFRM

For growth investors, Nu Holdings Ltd.

(NU) is the stronger pick with 44. 8% revenue growth year-over-year, versus 28. 8% for SoFi Technologies, Inc. (SOFI). XP Inc. (XP) offers the better valuation at 11. 5x 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. 5x versus Affirm Holdings, Inc. at 426. 7x. 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 +33. 6%, compared to -50. 0% for XP Inc. (XP). Over 10 years, the gap is even starker: MELI returned +1184% versus XP's -38. 1%. 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), MercadoLibre, Inc.

(MELI) is the lower-risk stock at 1. 13β versus Affirm Holdings, Inc. 's 2. 61β — meaning AFRM is approximately 131% more volatile than MELI 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 28. 8% for SoFi Technologies, Inc. (SOFI). On earnings-per-share growth, the picture is similar: Affirm Holdings, Inc. grew EPS 109. 0% year-over-year, compared to 0. 0% for SoFi Technologies, Inc.. Over a 3-year CAGR, MELI leads at 38. 9% annualised revenue growth. 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 1. 6% for Affirm Holdings, Inc. — 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 — SOFI leads at 75. 1%, 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 56. 4x for Affirm Holdings, Inc. — 54. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NU: 48. 4% to $20. 48.

In this comparison, XP (3.

9% yield) pays a dividend. NU, MELI, SOFI, AFRM do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, MercadoLibre, Inc.

(MELI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 13), +1184% 10Y return). Affirm Holdings, Inc. (AFRM) carries a higher beta of 2. 61 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (MELI: +1184%, AFRM: -34. 2%), 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.

These companies operate in different sectors (XP (Financial Services) and NU (Financial Services) and MELI (Consumer Cyclical) and SOFI (Financial Services) and AFRM (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

XP pays a dividend while NU, MELI, SOFI, AFRM do 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.