Oportun Financial (NASDAQ:OPRT) versus Winland Electronics (OTCMKTS:WELX) Critical Analysis

Winland Electronics (OTCMKTS:WELX) and Oportun Financial (NASDAQ:OPRT) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Institutional & Insider Ownership

82.7% of Oportun Financial shares are owned by institutional investors. 8.1% of Winland Electronics shares are owned by insiders. Comparatively, 1.6% of Oportun Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Winland Electronics	$5.81 million	1.94	-$520,000.00	$0.50	4.44
Oportun Financial	$956.70 million	0.29	$25.25 million	$0.37	16.22

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Winland Electronics	N/A	N/A	N/A
Oportun Financial	1.87%	12.14%	1.47%

Volatility & Risk

Winland Electronics has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Oportun Financial has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winland Electronics	0	0	0	0	0.00
Oportun Financial	1	2	1	0	2.00

Oportun Financial has a consensus target price of $7.00, suggesting a potential upside of 16.67%. Given Oportun Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Oportun Financial is more favorable than Winland Electronics.

Summary

Oportun Financial beats Winland Electronics on 10 of the 14 factors compared between the two stocks.

About Winland Electronics

Winland Holdings Corporation, through its subsidiaries, provides critical condition monitoring devices to the security industry. Its products are used to protect against loss of assets due to damage from water, excess humidity, extremes of temperature, and loss of power. The company offers EnviroAlert, which monitors temperature, humidity, and/or water presence in critical environments; TempAlert, a temperature monitoring device for residential and commercial environments through security systems; WaterBug, a water presence and leak detection system; and Power-Out Alert, a power outage detector. It also provides INSIGHT, an automated cloud-based platform that offers early alerting, reporting, and logging services designed to ensure regulatory compliance. The company offers its products through a network of distributors, dealers, security installers, and integrators for industries including health and medical, grocery and food services, and commercial and industrial, as well as agriculture and residential. Winland Holdings Corporation was incorporated in 1972 and is headquartered in Mankato, Minnesota.

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.