Consumer Portfolio Services (NASDAQ:CPSS) versus OppFi (NYSE:OPFI) Financial Survey

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consumer Portfolio Services	$434.47 million	0.50	$19.33 million	$1.02	9.81
OppFi	$597.05 million	0.80	$26.33 million	$1.52	3.68

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

Profitability

This table compares Consumer Portfolio Services and OppFi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Consumer Portfolio Services	4.99%	7.54%	0.58%
OppFi	15.62%	26.61%	12.64%

Institutional and Insider Ownership

47.6% of Consumer Portfolio Services shares are owned by institutional investors. Comparatively, 7.1% of OppFi shares are owned by institutional investors. 63.8% of Consumer Portfolio Services shares are owned by company insiders. Comparatively, 70.2% of OppFi shares are owned by company 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.

Volatility and Risk

Consumer Portfolio Services has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, OppFi has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Consumer Portfolio Services and OppFi, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consumer Portfolio Services	0	1	0	0	2.00
OppFi	0	4	2	0	2.33

OppFi has a consensus target price of $10.50, indicating a potential upside of 87.80%. Given OppFi’s stronger consensus rating and higher probable upside, analysts plainly believe OppFi is more favorable than Consumer Portfolio Services.

Summary

OppFi beats Consumer Portfolio Services on 12 of the 14 factors compared between the two stocks.

About Consumer Portfolio Services

Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States. It is involved in the purchase and service of retail automobile contracts originated by franchised automobile dealers and select independent dealers in the sale of new and used automobiles, light trucks, and passenger vans. The company, through its automobile contract purchases, offers indirect financing to the customers of dealers with limited credit histories or past credit problems. It also serves as an alternative source of financing for dealers, facilitating sales to customers who are not able to obtain financing from commercial banks, credit unions, and the captive finance companies. In addition, the company acquires installment purchase contracts in merger and acquisition transactions; purchases immaterial amounts of vehicle purchase money loans from non-affiliated lenders. It services its automobile contracts through its branches in California, Nevada, Virginia, Florida, and Illinois. The company was incorporated in 1991 and is based in Las Vegas, Nevada.

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.