OppFi (NYSE:OPFI) vs. Credit Acceptance (NASDAQ:CACC) Critical Comparison

OppFi (NYSE:OPFI) and Credit Acceptance (NASDAQ:CACC) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for OppFi and Credit Acceptance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	0	4	2	0	2.33
Credit Acceptance	1	3	0	0	1.75

OppFi presently has a consensus price target of $10.50, suggesting a potential upside of 68.78%. Credit Acceptance has a consensus price target of $505.00, suggesting a potential downside of 5.78%. Given OppFi’s stronger consensus rating and higher probable upside, analysts clearly believe OppFi is more favorable than Credit Acceptance.

Volatility and Risk

OppFi has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500. Comparatively, Credit Acceptance has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Insider and Institutional Ownership

7.1% of OppFi shares are held by institutional investors. Comparatively, 81.7% of Credit Acceptance shares are held by institutional investors. 70.2% of OppFi shares are held by insiders. Comparatively, 6.1% of Credit Acceptance shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares OppFi and Credit 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%
Credit Acceptance	14.39%	33.84%	5.84%

Valuation and Earnings

This table compares OppFi and Credit Acceptance”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$597.05 million	0.89	$26.33 million	$1.52	4.09
Credit Acceptance	$2.32 billion	2.35	$423.90 million	$30.62	17.50

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

Credit Acceptance Corporation engages in the provision of financing programs, and related products and services in the United States. The company advances money to automobile dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps the amount collected from the consumers. It is also involved in the business of reinsuring coverage under vehicle service contracts sold to consumers by dealers on vehicles financed by the company. The company serves independent and franchised automobile dealers. Credit Acceptance Corporation was incorporated in 1972 and is headquartered in Southfield, Michigan.