Analyzing Paysign (NASDAQ:PAYS) and OppFi (NYSE:OPFI)

OppFi (NYSE:OPFI) and Paysign (NASDAQ:PAYS) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OppFi	10.86%	39.90%	15.95%
Paysign	11.38%	21.74%	4.19%

Institutional and Insider Ownership

7.1% of OppFi shares are held by institutional investors. Comparatively, 25.9% of Paysign shares are held by institutional investors. 70.2% of OppFi shares are held by insiders. Comparatively, 24.5% of Paysign shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$597.05 million	1.20	$26.33 million	$0.93	9.04
Paysign	$82.03 million	5.04	$7.55 million	$0.17	43.53

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for OppFi and Paysign, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	0	3	1	0	2.25
Paysign	0	1	2	0	2.67

OppFi currently has a consensus price target of $13.00, suggesting a potential upside of 54.63%. Paysign has a consensus price target of $10.00, suggesting a potential upside of 35.14%. Given OppFi’s higher probable upside, equities research analysts clearly believe OppFi is more favorable than Paysign.

Volatility & Risk

OppFi has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, Paysign has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Summary

OppFi beats Paysign 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 Paysign

Paysign, Inc. provides prepaid card programs, comprehensive patient affordability offerings, digital banking services, and integrated payment processing services for businesses, consumers, and government institutions. Its product offerings include solutions for corporate rewards, prepaid gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and pharmaceutical payment assistance, and demand deposit accounts accessible with a debit card. The company markets its prepaid card solutions under the Paysign brand. Its primary market focus is on companies and municipalities that require a streamlined payment solution for rewards, rebates, payment assistance, and other payments to their customers, employees, agents, and others. The company was formerly known as 3PEA International, Inc. and changed its name to Paysign, Inc. in April 2019. Paysign, Inc. was incorporated in 1995 and is headquartered in Henderson, Nevada.