Analyzing MDB Capital (NASDAQ:MDBH) and Oportun Financial (NASDAQ:OPRT)

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

Risk & Volatility

MDB Capital has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Oportun Financial has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MDB Capital	N/A	-35.26%	-34.00%
Oportun Financial	1.87%	12.14%	1.47%

Analyst Recommendations

This is a summary of current ratings and recommmendations for MDB Capital and Oportun Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDB Capital	1	0	0	0	1.00
Oportun Financial	1	2	2	0	2.20

Oportun Financial has a consensus price target of $8.00, suggesting a potential upside of 52.38%. Given Oportun Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Oportun Financial is more favorable than MDB Capital.

Valuation & Earnings

This table compares MDB Capital and Oportun Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDB Capital	$4.91 million	7.49	-$21.25 million	($2.12)	-1.68
Oportun Financial	$956.70 million	0.25	$25.25 million	$0.37	14.19

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

Institutional & Insider Ownership

0.4% of MDB Capital shares are owned by institutional investors. Comparatively, 82.7% of Oportun Financial shares are owned by institutional investors. 55.8% of MDB Capital shares are owned by insiders. Comparatively, 9.3% of Oportun Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Oportun Financial beats MDB Capital on 12 of the 14 factors compared between the two stocks.

About MDB Capital

MDB Capital Holdings, LLC, through its subsidiaries, primarily operates as a broker-dealer. The company operates through two segments, Broker Dealer & Intellectual Property Service, and Technology Development. The Broker Dealer & Intellectual Property Service segment operates as a full-service broker dealer that focuses on conducting private and public securities offerings, as well as providing research services for investment banking due diligence. The Technology Development segment engages in the synthetic biology technology development business. The company was founded in 1997 and is based in Addison, Texas.

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.