OppFi (NYSE:OPFI – Get Free Report) and Visa (NYSE:V – Get Free Report) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
Institutional and Insider Ownership
7.1% of OppFi shares are held by institutional investors. Comparatively, 82.2% of Visa shares are held by institutional investors. 72.0% of OppFi shares are held by insiders. Comparatively, 0.1% of Visa shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares OppFi and Visa”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OppFi | $597.05 million | 1.14 | $26.33 million | ($0.11) | -72.59 |
| Visa | $40.00 billion | 13.80 | $20.06 billion | $10.66 | 28.53 |
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.
Analyst Recommendations
This is a summary of current ratings for OppFi and Visa, as reported by MarketBeat.com.
| 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, suggesting a potential upside of 75.33%. Visa has a consensus target price of $392.65, suggesting a potential upside of 29.13%. Given OppFi’s higher possible upside, equities analysts clearly believe OppFi is more favorable than Visa.
Volatility and Risk
OppFi has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Visa has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
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% |
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.
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