Contrasting WEX (NYSE:WEX) & OppFi (NYSE:OPFI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WEX	10.81%	45.10%	3.52%
OppFi	0.68%	55.59%	20.07%

Risk & Volatility

WEX has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, OppFi has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.

Institutional & Insider Ownership

97.5% of WEX shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 1.4% of WEX shares are held by company insiders. Comparatively, 72.0% of OppFi shares are held by company 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.

Earnings & Valuation

This table compares WEX and OppFi”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WEX	$2.63 billion	1.94	$309.60 million	$7.69	19.36
OppFi	$525.96 million	1.72	$7.26 million	($0.75)	-13.95

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for WEX and OppFi, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEX	0	12	4	0	2.25
OppFi	1	2	2	0	2.20

WEX currently has a consensus price target of $172.92, indicating a potential upside of 16.13%. OppFi has a consensus price target of $13.63, indicating a potential upside of 30.26%. Given OppFi’s higher probable upside, analysts clearly believe OppFi is more favorable than WEX.

Summary

WEX beats OppFi on 9 of the 14 factors compared between the two stocks.

About WEX

WEX Inc. operates a commerce platform in the United States and internationally. The Mobility segment offers fleet vehicle payment solutions, transaction processing, and information management services; and provides account activation and account retention services; authorization and billing inquiries, and account maintenance services; account management; credit and collections services; merchant services; analytics solutions; and ancillary services and offerings. This segment markets its products directly and indirectly to businesses and government agencies with fleets of commercial vehicles; and indirectly through co-branded and private label relationships. The Corporate Payments segment provides payment solutions, including embedded payments; and accounts payable automation and spend management solutions. This segment also markets its products directly and indirectly to customers in travel, fintech, insurance, consumer bill pay, and media verticals. The Benefits Solutions segment offers software-as-a-service (SaaS) platform for consumer directed healthcare benefits and full-service benefit enrollment solutions. In addition, its SaaS platform includes embedded payment solutions and plan administration services for consumer-directed health benefits; COBRA accounts; and benefit enrollment and administration services. Further, it offers custodial and depository services for health savings accounts; and markets its products through third-party administrators, financial institutions, payroll providers, and health plans. The company was formerly known as Wright Express Corporation and changed its name to WEX Inc. in October 2012. WEX Inc. was founded in 1983 and is based in Portland, Maine.

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.