Paymentus (NYSE:PAY) versus OppFi (NYSE:OPFI) Critical Contrast

Paymentus (NYSE:PAY) and OppFi (NYSE:OPFI) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paymentus	5.78%	13.75%	11.53%
OppFi	10.86%	39.90%	15.95%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paymentus	$1.20 billion	2.47	$66.94 million	$0.57	41.30
OppFi	$597.05 million	1.21	$26.33 million	$0.93	9.10

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

Risk and Volatility

Paymentus has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, OppFi has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Institutional and Insider Ownership

78.4% of Paymentus shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 75.4% of Paymentus shares are held by insiders. Comparatively, 70.2% of OppFi shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Paymentus and OppFi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paymentus	0	3	3	1	2.71
OppFi	0	3	1	0	2.25

Paymentus currently has a consensus price target of $35.20, suggesting a potential upside of 49.53%. OppFi has a consensus price target of $13.00, suggesting a potential upside of 53.57%. Given OppFi’s higher probable upside, analysts clearly believe OppFi is more favorable than Paymentus.

Summary

Paymentus beats OppFi on 9 of the 15 factors compared between the two stocks.

About Paymentus

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.

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.