Head to Head Contrast: OppFi (NYSE:OPFI) versus Grenke (OTCMKTS:GKSGF)

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

Analyst Recommendations

This is a summary of recent ratings for Grenke and OppFi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grenke	0	0	1	0	3.00
OppFi	0	3	2	0	2.40

OppFi has a consensus target price of $13.00, indicating a potential upside of 38.25%. Given OppFi’s higher possible upside, analysts plainly believe OppFi is more favorable than Grenke.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grenke	N/A	N/A	N/A
OppFi	10.86%	39.90%	15.95%

Valuation and Earnings

This table compares Grenke and OppFi”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grenke	N/A	N/A	N/A	$4.09	4.22
OppFi	$597.05 million	1.34	$26.33 million	$0.93	10.11

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

Institutional and Insider Ownership

28.5% of Grenke shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 70.2% of OppFi shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

OppFi beats Grenke on 8 of the 11 factors compared between the two stocks.

About Grenke

Grenke AG, together with its subsidiaries, provides financial services to small and medium-sized (SME) enterprises in Germany, France, Italy, and internationally. It operates through three segments: Leasing, Banking, and Factoring. The company is involved in the leasing activities, such as financing to commercial lessees, rental, service, protection, and maintenance offerings, as well as sale of used equipment; and small-ticket leasing of IT products, such as PCs, notebooks, servers, monitors, software, and other peripheral equipment; leasing office communication products, that includes telecommunication and copier equipment, as well as medical technology products, small machinery and systems, and security devices; and leasing green economy objects, such as wallboxes, photovoltaic systems, and eBikes. It also provides banking products and services, such as fixed deposits to private and business customers through its website; financing services to business start-ups, as well as development loans to SMEs and self-employed professionals; and small-ticket factoring services. The company was formerly known as GrenkeLeasing AG and changed its name to Grenke AG in May 2016. Grenke AG was founded in 1978 and is headquartered in Baden-Baden, Germany.

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.