Oportun Financial (NASDAQ:OPRT) versus The9 (NASDAQ:NCTY) Critical Analysis

Oportun Financial (NASDAQ:OPRT) and The9 (NASDAQ:NCTY) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Oportun Financial and The9, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oportun Financial	0	4	2	0	2.33
The9	0	0	0	0	N/A

Oportun Financial presently has a consensus target price of $6.00, indicating a potential upside of 70.94%. Given Oportun Financial’s higher possible upside, research analysts plainly believe Oportun Financial is more favorable than The9.

Risk & Volatility

Oportun Financial has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, The9 has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500.

Earnings & Valuation

This table compares Oportun Financial and The9’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oportun Financial	$1.06 billion	0.12	-$179.95 million	($5.05)	-0.70
The9	$25.22 million	1.44	$2.82 million	N/A	N/A

The9 has lower revenue, but higher earnings than Oportun Financial.

Profitability

This table compares Oportun Financial and The9’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oportun Financial	-17.02%	-31.58%	-4.02%
The9	N/A	N/A	N/A

Institutional & Insider Ownership

82.7% of Oportun Financial shares are owned by institutional investors. Comparatively, 0.5% of The9 shares are owned by institutional investors. 10.2% of Oportun Financial shares are owned by company insiders. Comparatively, 30.8% of The9 shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

The9 beats Oportun Financial on 7 of the 11 factors compared between the two stocks.

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.

About The9

The9 Limited, together with its subsidiaries, operates as Internet company in the People's Republic of China and internationally. It also involves in the operation of cryptocurrency mining and Non-Fungible Token platform NFTSTAR, a NFT trading and community platform that provides users with purchase, trade, and interactive activities. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was incorporated in 1999 and is headquartered in Shanghai, the People's Republic of China.