OppFi (NYSE:OPFI) & PayPal (NASDAQ:PYPL) Head to Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PayPal	14.96%	25.64%	6.45%
OppFi	0.68%	55.59%	20.07%

Analyst Recommendations

This is a breakdown of recent ratings for PayPal and OppFi, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PayPal	4	17	15	0	2.31
OppFi	1	1	3	1	2.67

PayPal presently has a consensus price target of $82.94, suggesting a potential upside of 25.20%. OppFi has a consensus price target of $13.63, suggesting a potential upside of 40.17%. Given OppFi’s stronger consensus rating and higher probable upside, analysts plainly believe OppFi is more favorable than PayPal.

Institutional and Insider Ownership

68.3% of PayPal shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 0.1% of PayPal shares are held by company insiders. Comparatively, 72.0% of OppFi shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares PayPal and OppFi”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PayPal	$31.80 billion	1.95	$4.15 billion	$4.99	13.28
OppFi	$573.52 million	1.48	$7.26 million	($0.75)	-12.96

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

Volatility & Risk

PayPal has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, OppFi has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500.

Summary

PayPal beats OppFi on 8 of the 15 factors compared between the two stocks.

About PayPal

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.

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.