OppFi (NYSE:OPFI) and World Acceptance (NASDAQ:WRLD) Financial Comparison

OppFi (NYSE:OPFI) and World Acceptance (NASDAQ:WRLD) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OppFi	15.62%	26.61%	12.64%
World Acceptance	8.45%	15.32%	4.97%

Insider and Institutional Ownership

7.1% of OppFi shares are owned by institutional investors. Comparatively, 83.6% of World Acceptance shares are owned by institutional investors. 70.2% of OppFi shares are owned by insiders. Comparatively, 38.0% of World Acceptance shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

OppFi has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500. Comparatively, World Acceptance has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Earnings & Valuation

This table compares OppFi and World Acceptance”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$597.05 million	0.80	$26.33 million	$1.52	3.71
World Acceptance	$585.74 million	1.31	$34.59 million	$10.76	15.29

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

Analyst Ratings

This is a breakdown of current ratings and target prices for OppFi and World Acceptance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	0	4	2	0	2.33
World Acceptance	0	2	0	0	2.00

OppFi currently has a consensus price target of $10.50, indicating a potential upside of 86.17%. Given OppFi’s stronger consensus rating and higher possible upside, research analysts clearly believe OppFi is more favorable than World Acceptance.

Summary

OppFi beats World Acceptance on 9 of the 14 factors compared between the two stocks.

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.

About World Acceptance

World Acceptance Corporation engages in consumer finance business in the United States. The company provides short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It offers income tax return preparation and filing services; and automobile club memberships. It serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.