Contrasting Shift4 Payments (NYSE:FOUR) and OppFi (NYSE:OPFI)

OppFi (NYSE:OPFI) and Shift4 Payments (NYSE:FOUR) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Risk and Volatility

OppFi has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Shift4 Payments has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for OppFi and Shift4 Payments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	1	2	2	0	2.20
Shift4 Payments	0	7	14	1	2.73

OppFi currently has a consensus price target of $13.63, suggesting a potential upside of 43.50%. Shift4 Payments has a consensus price target of $92.25, suggesting a potential upside of 56.65%. Given Shift4 Payments’ stronger consensus rating and higher probable upside, analysts clearly believe Shift4 Payments is more favorable than OppFi.

Insider and Institutional Ownership

7.1% of OppFi shares are held by institutional investors. Comparatively, 98.9% of Shift4 Payments shares are held by institutional investors. 72.0% of OppFi shares are held by company insiders. Comparatively, 25.2% of Shift4 Payments shares are held by company 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.

Valuation and Earnings

This table compares OppFi and Shift4 Payments”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$525.96 million	1.56	$7.26 million	($0.75)	-12.66
Shift4 Payments	$3.33 billion	1.57	$229.60 million	$2.13	27.65

Shift4 Payments has higher revenue and earnings than OppFi. OppFi is trading at a lower price-to-earnings ratio than Shift4 Payments, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares OppFi and Shift4 Payments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OppFi	0.68%	55.59%	20.07%
Shift4 Payments	5.02%	40.19%	6.61%

Summary

Shift4 Payments beats OppFi on 11 of the 15 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 Shift4 Payments

Shift4 Payments, Inc. (NYSE FOUR) provides integrated payment processing and technology solutions in the United States. Its payments platform provides omni-channel card acceptance and processing solutions, including end-to-end payment processing for various payment types; merchant acquiring; proprietary omni-channel gateway; complementary software integrations; integrated and mobile point-of-sale (POS) solutions; security and risk management solutions; and reporting and analytical tools, as well as tokenization, risk management/underwriting, payment device and chargeback management, fraud prevention, and gift card solutions. The company also offers suite of technology solutions, such as Lighthouse, a cloud-based business intelligence tool that includes customer engagement, social media management, online reputation management, scheduling, and product pricing, as well as reporting and analytics; integrated POS for merchants business; and Skytab, a mobile payment solution. In addition, it provides marketplace technology that enable seamless integrations into third-party applications, which includes online delivery services, payroll, timekeeping, and other human resource services. Further, the company offers merchant management, training and education, marketing management, and incentives tracking solutions. Additionally, it provides merchant underwriting, onboarding and activation, training, risk management, and support services; and software integrations and compliance management, and partner support and services. The company was founded in 1998 and is headquartered in Allentown, Pennsylvania.