$SOFI vs $NU vs $SQ (banking divisions only) 🧵
Which one of these companies is growing the largest and fastest user base?
$NU Nubank seems to take the lead but at what cost? Surely they are spending the most to acquire this user base... right?!
Well, that's not a fair comparison, LatAm has nearly 2x the population, of course Nubank would win.
Average Revenue Per User will tell a different story of the less affluent audience in LatAm and thus the sales and marketing spend has to be low... right?!
Okay so they are not winning for ARPU but they are the fastest-growing there so what next?
Let's take a look at the acquisition efficacy and the time to break even on a per-member basis.
$SOFI = ~460 days
$SQ = ~39 days
$NU = ~19 days
None of these stocks are considered value stocks by any means, they are all in growth phases and acquiring customers at record-breaking speeds.
I find it important to point out that $NU is also profitable.
That being said $SQ and $SOFI I suspect will be profitable in 2023 also.
The growth strategies for NU and SQ are quite similar; acquire cheap, improve monetization through continued deeper relationships over time.
SoFi is a lending-first co looking for high-end clients in a competitive US landscape. LatAm is its own landscape still ripe for growth!🚀
Keep in mind this is just the banking portion of these businesses and not the other aspects of the business (other than Net Income).
Not to mention this doesn't factor in stock valuation or multiples on earnings.
My portfolio:
$SOFI > $NU > $SQ
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