Oportun Financial (NASDAQ:OPRT) and OneMain (NYSE:OMF) Critical Review

Oportun Financial (NASDAQ:OPRT) and OneMain (NYSE:OMF) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Institutional & Insider Ownership

82.7% of Oportun Financial shares are held by institutional investors. Comparatively, 85.8% of OneMain shares are held by institutional investors. 1.6% of Oportun Financial shares are held by company insiders. Comparatively, 0.3% of OneMain shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Oportun Financial and OneMain, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oportun Financial	0	3	2	0	2.40
OneMain	1	3	9	0	2.62

Oportun Financial currently has a consensus price target of $9.25, suggesting a potential downside of 21.61%. OneMain has a consensus price target of $66.82, suggesting a potential upside of 20.52%. Given OneMain’s stronger consensus rating and higher possible upside, analysts plainly believe OneMain is more favorable than Oportun Financial.

Profitability

This table compares Oportun Financial and OneMain’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oportun Financial	3.88%	14.67%	1.87%
OneMain	13.43%	21.90%	2.68%

Risk and Volatility

Oportun Financial has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, OneMain has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Earnings and Valuation

This table compares Oportun Financial and OneMain”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oportun Financial	$956.70 million	0.57	$25.25 million	$0.74	15.95
OneMain	$5.21 billion	1.22	$783.00 million	$6.57	8.44

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

Summary

OneMain beats Oportun Financial on 12 of the 14 factors compared between the two stocks.

About Oportun Financial

Oportun Financial provides consumer financial products designed primarily for people with limited or no credit history. Its offerings include personal loans and credit cards, supported by technology intended to help customers access credit and build their financial histories. Founded in 2005 as Progreso Financiero, the company later adopted the Oportun name. It serves customers in the United States through digital channels and a network of retail locations. Oportun has also offered savings-related services, including automated savings tools.

About OneMain

OneMain Holdings, Inc. is a consumer finance company that provides personal loans to customers, including borrowers who may have limited access to traditional credit. Its offerings include secured and unsecured installment loans, which customers can apply for through its branches or digital channels. The company also offers credit-related insurance and other products designed to complement its lending services. OneMain serves customers across the United States through a nationwide branch network and online services.