OppFi (NYSE:OPFI) & Visa (NYSE:V) Head-To-Head Analysis

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for OppFi and Visa, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	1	2	1	0	2.00
Visa	0	3	19	7	3.14

OppFi currently has a consensus target price of $14.00, indicating a potential upside of 75.64%. Visa has a consensus target price of $392.65, indicating a potential upside of 30.24%. Given OppFi’s higher possible upside, analysts plainly believe OppFi is more favorable than Visa.

Valuation & Earnings

This table compares OppFi and Visa”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	1.15	$26.33 million	($0.11)	-72.46
Visa	$40.00 billion	13.68	$20.06 billion	$10.66	28.28

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OppFi	4.41%	45.42%	16.95%
Visa	50.23%	61.74%	23.84%

Institutional & Insider Ownership

7.1% of OppFi shares are owned by institutional investors. Comparatively, 82.2% of Visa shares are owned by institutional investors. 72.0% of OppFi shares are owned by company insiders. Comparatively, 0.1% of Visa shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

OppFi has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500. Comparatively, Visa has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Summary

Visa beats OppFi on 12 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 Visa

Visa Inc. operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services. The company also provides acceptance solutions, which include Cybersource that provides modular and value-added services for connecting merchants to payment processing; risk and identity solutions, such as Visa Advanced Authorization, Visa Secure, Visa Risk and Decision Manager, Visa Consumer Authentication Service, and payment-decisioning solutions for fraud prevention; and Visa Consulting and Analytics, a payment consulting advisory services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brand names. The company serves merchants, financial institutions, and government entities. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.