Oportun Financial (NASDAQ:OPRT) & Triumph Financial (NASDAQ:TFIN) Financial Contrast

Oportun Financial (NASDAQ:OPRT) and Triumph Financial (NASDAQ:TFIN) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Insider and Institutional Ownership

82.7% of Oportun Financial shares are owned by institutional investors. Comparatively, 91.1% of Triumph Financial shares are owned by institutional investors. 9.3% of Oportun Financial shares are owned by insiders. Comparatively, 5.6% of Triumph Financial 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oportun Financial	-0.47%	13.15%	1.45%
Triumph Financial	2.75%	1.79%	0.25%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oportun Financial	2	2	2	0	2.00
Triumph Financial	0	4	0	0	2.00

Oportun Financial currently has a consensus price target of $8.67, indicating a potential upside of 60.20%. Triumph Financial has a consensus price target of $70.75, indicating a potential upside of 46.32%. Given Oportun Financial’s higher probable upside, equities research analysts clearly believe Oportun Financial is more favorable than Triumph Financial.

Volatility and Risk

Oportun Financial has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Valuation and Earnings

This table compares Oportun Financial and Triumph Financial”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	$1.00 billion	0.24	-$78.68 million	($0.20)	-27.05
Triumph Financial	$419.01 million	2.74	$16.09 million	$0.44	109.89

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

Summary

Triumph Financial beats Oportun Financial on 7 of the 13 factors compared between the two stocks.

About Oportun Financial

Oportun Financial Corporation provides financial services. The company offers personal loans and credit cards. It serves customers through online and over the phone, as well as through retail and Lending as a Service partner locations. The company was founded in 2005 and is headquartered in San Carlos, California.

About Triumph Financial

Triumph Financial, Inc., a financial holding company, provides various payments, factoring, and banking services in the United States. It operates through Banking, Factoring, and Payments segments. The company offers deposit products, including checking, savings, money market and certificates of deposit; and loan products, such as commercial real estate, land, commercial construction and land development, residential real estate, commercial agriculture, and consumer loans, as well as commercial and industrial loans, equipment loans, asset-based loans, business loans for working capital and operational purposes, and liquid credit loans. It also provides electronic banking services, debit cards, insurance brokerage services, mortgage warehouse facilities, and transportation factoring services, as well as payments services offered through TriumphPay platform, a payments network for the over-the-road trucking industry. The company was formerly known as Triumph Bancorp, Inc. and changed its name to Triumph Financial Inc. in December 2022. Triumph Financial Inc. was incorporated in 2003 and is headquartered in Dallas, Texas.