Head-To-Head Analysis: Paysign (NASDAQ:PAYS) vs. OppFi (NYSE:OPFI)

Paysign (NASDAQ:PAYS) and OppFi (NYSE:OPFI) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Paysign and OppFi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paysign	11.38%	21.74%	4.19%
OppFi	10.86%	39.90%	15.95%

Earnings and Valuation

This table compares Paysign and OppFi”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysign	$82.03 million	5.57	$7.55 million	$0.17	48.06
OppFi	$597.05 million	1.33	$26.33 million	$0.93	9.99

OppFi has higher revenue and earnings than Paysign. OppFi is trading at a lower price-to-earnings ratio than Paysign, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Paysign has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, OppFi has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Paysign and OppFi, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paysign	0	0	3	0	3.00
OppFi	0	3	2	0	2.40

Paysign currently has a consensus target price of $10.00, indicating a potential upside of 22.40%. OppFi has a consensus target price of $13.00, indicating a potential upside of 39.91%. Given OppFi’s higher probable upside, analysts plainly believe OppFi is more favorable than Paysign.

Insider and Institutional Ownership

25.9% of Paysign shares are owned by institutional investors. Comparatively, 7.1% of OppFi shares are owned by institutional investors. 24.5% of Paysign shares are owned by insiders. Comparatively, 70.2% of OppFi shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

OppFi beats Paysign on 8 of the 14 factors compared between the two stocks.

About Paysign

Paysign, Inc. provides prepaid card programs, comprehensive patient affordability offerings, digital banking services, and integrated payment processing services for businesses, consumers, and government institutions. Its product offerings include solutions for corporate rewards, prepaid gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and pharmaceutical payment assistance, and demand deposit accounts accessible with a debit card. The company markets its prepaid card solutions under the Paysign brand. Its primary market focus is on companies and municipalities that require a streamlined payment solution for rewards, rebates, payment assistance, and other payments to their customers, employees, agents, and others. The company was formerly known as 3PEA International, Inc. and changed its name to Paysign, Inc. in April 2019. Paysign, Inc. was incorporated in 1995 and is headquartered in Henderson, Nevada.

About OppFi

OppFi Inc. operates a cialty finance platform that allows banks to offer credit access. Its platform facilitates the OppLoans, an installment loan product; SalaryTap, a payroll deduction secured installment loan product; and OppFi Card, a credit card product. OppFi Inc. was founded in 2012 and is headquartered in Chicago, Illinois.