Nu vs. Chime: Which Digital Banking Stock Is the Better Buy?
Nu Holdings Ltd. NU and Chime Financial, Inc. CHYM are both digital-first financial platforms trying to replace branch-heavy banking with simpler mobile products, lower operating costs and deeper customer relationships. Each is using technology, data and a widening product set to make its app the primary place where customers spend, save, borrow and increasingly invest.
The main difference is geography and maturity. Nu operates at huge scale across Brazil, Mexico and Colombia, with 139 million customers at the end of the second quarter, and has now entered the United States. Chime is far smaller, with 10.4 million active members, but it is concentrated on the U.S. market and remains early in expanding beyond checking and payments.
This sets up a choice for investors. Nu offers proven scale, strong profitability and international reach, while Chime offers a younger growth story with improving monetization, new products and a clearer path to owning more of its banking infrastructure.
The Case for NU
Nu’s strongest argument is its combination of scale and profitability. It ended second-quarter 2026 with 139 million customers, while monthly activity improved to 83.5%. Gross revenues reached nearly $5.9 billion, and net income topped $1 billion for the first time. This gives Nu a much larger earnings base than Chime and more capacity to fund expansion internally.
Brazil remains the core engine. Nu serves almost 118 million customers there, and management says it is the primary account for roughly 60% of its mass-market customers. Products such as Ultravioleta and the newer Croma tier are designed to capture more spending, deposits and investments from higher-value users rather than relying only on customer additions.
Mexico is also becoming more important. Nu has more than 16 million customers there and recently began operating as a bank. The banking license should support payroll deposits, higher insured balances and a broader lending offering. Mexico reached break-even faster than Brazil did, suggesting the company can transfer parts of its operating playbook across markets.
The new U.S. launch adds another long-term growth option, but it also introduces execution risk. Chime already has more than 10 million active members in the United States, so Nu is entering a market with strong digital competitors and different consumer habits.
Nu remains a high-quality growth platform with strong brand recognition, improving monetization and advanced AI capabilities. Still, its larger scale means future growth increasingly depends on deeper engagement, successful international expansion and disciplined credit execution across Brazil, Mexico, Colombia and beyond.
The Case for CHYM
Chime’s appeal is that several growth levers are working at the same time. Active members reached 10.4 million in second-quarter 2026, up 20% year over year, while average revenue per active member rose 6% to $260. Unlike Nu, Chime is still building scale in one large market, leaving more room for member growth and wallet-share gains.
Chime Prime looks especially important. Members who qualify through higher direct deposits generate more than twice the ARPAM of the average active member. Prime is also helping Chime attract higher-income users, deepen direct-deposit relationships and increase card usage, which supports both payments revenues and broader platform monetization.
The product pipeline is widening quickly. MyPay transaction profit more than tripled year over year, Instant Loans originations rose nearly 70% sequentially, and Chime Invest extends the app into wealth building. These products make Chime less dependent on basic interchange and give it more ways to monetize existing members without relying only on acquisition.
The planned $590 million acquisition of Stride Bank could be another major step. Owning a national bank should reduce partner friction, improve funding flexibility and speed product development. Management expects more than $100 million of net synergies, although regulatory approval and integration remain important execution points.
Chime is also showing stronger operating leverage. Its second-quarter 2026 adjusted EBITDA margin reached 15%, with a 60% incremental margin, while GAAP profitability continued for a second straight quarter. Compared with Nu’s more mature platform, Chime offers a smaller but faster-developing U.S. growth story, with several visible catalysts ahead.
How Do Estimates Compare for NU & CHYM?
The Zacks Consensus Estimate for Nu’s 2026 and 2027 sales implies year-over-year growth of 42.68% and 24.09%, respectively. Over the past 60 days, estimates for Nu’s 2026 and 2027 EPS have been revised northward. The consensus mark for 2026 and 2027 EPS suggests a year-over-year increase of 38.71% and 35.12%, respectively.
For Nu Holdings:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Chime Financial’s 2026 and 2027 sales calls for year-over-year growth of 26.74% and 20.76%, respectively. The consensus estimates for both 2026 and 2027 EPS have been revised considerably upward over the past 60 days. The figures suggest a year-over-year increase of 110.30% and 117.59%, respectively.
For Chime Financial:
Image Source: Zacks Investment Research
Price Performance and Valuation of NU & CHYM
Over the past three months, Nu shares have declined 8.5%, while Chime Financial shares have rallied 30.3%. In comparison, the S&P 500 composite has advanced 2.7% in the same time frame.
Image Source: Zacks Investment Research
NU is trading at a forward 12-month price-to-earnings of 11.23X, which is below its one-year median of 13.75X. Meanwhile, CHYM is presently trading at a forward 12-month price-to-earnings of 32.18X, which is well below its one-year median of 40.13X.
This premium means investors are paying more for Chime’s expected growth and improving profitability, so execution matters. Nu’s lower multiple better reflects its established earnings base and gives it more valuation support if growth moderates. Chime, however, may justify part of its premium if Prime, lending, enterprise distribution and the Stride acquisition expand revenues and margins faster than expected.
Image Source: Zacks Investment Research
Conclusion
Both Nu Holdings and Chime Financial have credible long-term growth paths, but their investment profiles are different. Nu offers larger scale, stronger profitability, proven execution across Latin America and a cheaper forward earnings multiple. Its U.S. entry adds optionality, though meaningful contribution will take time.
Chime, meanwhile, has accelerating member growth, improving monetization, expanding products and a potentially important infrastructure shift through the Stride acquisition. These catalysts make Chime the more compelling choice for investors seeking fresh exposure to digital banking growth. Nu still has solid fundamentals and expansion potential, but its risk-reward profile appears better suited to investors already positioned in the shares.
While NU carries a Zacks Rank #3 (Hold), CHYM sports a Zacks Rank #1 (Strong Buy). 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).
