Contrasting Capital One Financial (NYSE:COF) and Oportun Financial (NASDAQ:OPRT)

Capital One Financial (NYSE:COF) and Oportun Financial (NASDAQ:OPRT) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Risk & Volatility

Capital One Financial has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Oportun Financial has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Capital One Financial and Oportun Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital One Financial	0	3	21	0	2.88
Oportun Financial	1	2	2	0	2.20

Capital One Financial presently has a consensus price target of $258.91, suggesting a potential upside of 17.44%. Oportun Financial has a consensus price target of $7.33, suggesting a potential downside of 1.03%. Given Capital One Financial’s stronger consensus rating and higher possible upside, equities analysts plainly believe Capital One Financial is more favorable than Oportun Financial.

Earnings & Valuation

This table compares Capital One Financial and Oportun Financial”s 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	1.95	$2.45 billion	$16.16	13.64
Oportun Financial	$956.70 million	0.36	$25.25 million	$0.40	18.52

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

Institutional & Insider Ownership

89.8% of Capital One Financial shares are held by institutional investors. Comparatively, 82.7% of Oportun Financial shares are held by institutional investors. 0.8% of Capital One Financial shares are held by insiders. Comparatively, 1.6% of Oportun Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Capital One Financial and Oportun Financial’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%
Oportun Financial	2.05%	13.41%	1.66%

Summary

Capital One Financial beats Oportun Financial on 10 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 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.