Comparing OppFi (NYSE:OPFI) & Vroom (NASDAQ:VRM)

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

Valuation & Earnings

This table compares Vroom and OppFi”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vroom	$10.09 million	4.99	-$7.96 million	($11.12)	-0.86
OppFi	$597.05 million	0.87	$26.33 million	$1.89	3.21

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

Institutional & Insider Ownership

25.8% of Vroom shares are owned by institutional investors. Comparatively, 7.1% of OppFi shares are owned by institutional investors. 2.9% of Vroom shares are owned by insiders. Comparatively, 70.2% of OppFi shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vroom	-32.38%	-47.65%	-5.59%
OppFi	16.64%	30.89%	13.99%

Analyst Ratings

This is a summary of recent recommendations for Vroom and OppFi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vroom	1	0	0	0	1.00
OppFi	1	3	2	0	2.17

OppFi has a consensus target price of $10.50, suggesting a potential upside of 73.12%. Given OppFi’s stronger consensus rating and higher probable upside, analysts plainly believe OppFi is more favorable than Vroom.

Risk and Volatility

Vroom has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, OppFi has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.

Summary

OppFi beats Vroom on 12 of the 14 factors compared between the two stocks.

About Vroom

Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.

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.