OppFi (NYSE:OPFI) and Nelnet (NYSE:NNI) Critical Comparison

OppFi (NYSE:OPFI) and Nelnet (NYSE:NNI) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Insider and Institutional Ownership

7.1% of OppFi shares are held by institutional investors. Comparatively, 33.5% of Nelnet shares are held by institutional investors. 70.2% of OppFi shares are held by insiders. Comparatively, 40.3% of Nelnet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for OppFi and Nelnet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	1	3	2	0	2.17
Nelnet	1	2	0	0	1.67

OppFi presently has a consensus target price of $10.50, indicating a potential upside of 80.13%. Nelnet has a consensus target price of $125.00, indicating a potential downside of 1.58%. Given OppFi’s stronger consensus rating and higher possible upside, research analysts clearly believe OppFi is more favorable than Nelnet.

Valuation and Earnings

This table compares OppFi and Nelnet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$597.05 million	0.83	$26.33 million	$1.89	3.08
Nelnet	$2.26 billion	2.01	$428.47 million	$8.36	15.19

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OppFi	16.64%	30.89%	13.99%
Nelnet	14.35%	8.26%	2.11%

Risk and Volatility

OppFi has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, Nelnet has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Summary

OppFi beats Nelnet on 8 of the 14 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 Nelnet

Nelnet, Inc. engages in loan servicing, communications, education technology, services, and payment processing businesses worldwide. The Loan Servicing and Systems segment provides loan conversion, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliation, and claim processing services. This segment also offers student loan servicing software; business process outsourcing services specialized in contact center management, such as inbound calls, outreach campaigns and sales, and interacting with customers through multi-channels, and processing and technology services. The Education Technology Services and Payments segment provides financial management services; school information system software; website design and cost-effective admissions software; FACTS Giving, a donation platform; and customized professional development and coaching services, educational instruction services, and technology products that aid in teacher and student evaluations. This segment also offers tuition payment plans, and service and technology for student billings, payments, and refunds; solutions for in-person, online, and mobile payment experiences on campus; payment processing services, such as credit card and electronic transfer; faith community, giving, and learning management services and technologies; and an integrated commerce payment platform, financial management, and tuition payment plan services, as well as a school management platform that provides administrative, information and financial management, and communication functions for K-12 schools. The Asset Generation and Management segment acquires, manages, and owns loan assets. The Nelnet Bank segment operates as an internet industrial bank. It also offers investment advisory, insurance, and reinsurance services, as well as engages in real estate investment business. The company was incorporated in 1977 and is headquartered in Lincoln, Nebraska.