Better Buy: SoFi Technologies vs. Upstart Holdings

Out with the old and in with the new could be a mantra for fintech superstars Upstart Holdings (NASDAQ: UPST) and SoFi Technologies (NASDAQ: SOFI). Upstart is upending the way lenders assess individual credit risk, while SoFi is rapidly changing how consumers bank.

Both of these companies are poised for years of rapid growth, but one of the stocks is a much-better buy right now.

Upstart is changing how banks and credit unions evaluate credit risk with its artificial intelligence-powered algorithms that draw from a deep well of personal information. The exact depth is a closely guarded secret, but the company makes a convincing case that its method creates a more comprehensive picture of an individual's ability to repay a loan than Fair Isaac's three-digit FICO score.

Source Fool.com