Contrasting Capital One Financial (NYSE:COF) & OppFi (NYSE:OPFI)

Capital One Financial (NYSE:COF) and OppFi (NYSE:OPFI) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Earnings and Valuation

This table compares Capital One Financial and OppFi”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital One Financial	$69.25 billion	1.93	$2.45 billion	$16.16	13.49
OppFi	$597.05 million	1.00	$26.33 million	$1.89	3.70

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

Institutional and Insider Ownership

89.8% of Capital One Financial shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 0.8% of Capital One Financial shares are held by company insiders. Comparatively, 70.2% of OppFi shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Capital One Financial has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, OppFi has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capital One Financial	13.37%	11.28%	1.90%
OppFi	16.64%	30.89%	13.99%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Capital One Financial and OppFi, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital One Financial	0	3	21	0	2.88
OppFi	0	3	2	0	2.40

Capital One Financial currently has a consensus price target of $259.14, indicating a potential upside of 18.84%. OppFi has a consensus price target of $10.25, indicating a potential upside of 46.43%. Given OppFi’s higher possible upside, analysts clearly believe OppFi is more favorable than Capital One Financial.

Summary

Capital One Financial beats OppFi on 8 of the 14 factors compared between the two stocks.

About Capital One Financial

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.

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.