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Portfolio assessment is a method used by teachers to evaluate their students’ academic performance by giving them several assignments and/or projects to work on during the semester. This is one alternative to exams which are an assessment tool seldom questioned for its validity and efficacy. This study seeks to scrutinize both of the mentioned methods of assessment and determine which is more accurate and viable to be adopted in tertiary education. A cohort of sixty 20–22-year-old university students in the College of Engineering at the American University of Sharjah participated in this study. They were required to complete a questionnaire comprising 12 questions concerning the academic, mental health, and professional benefits that students can enjoy as a result of being tested by means of portfolio assessment instead of exams. The research question is as follows: Is portfolio assessment a generally more viable method of evaluating university students’ academic performance than exams in terms of the potential academic, mental health, and professional benefits which such an assessment affords students? Overall, portfolio assessment was found to be a much more appropriate method of assessing university students than exams. The results of the study have implications for university professors, education experts, and examiners.