Critical Comparison: 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 business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

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%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Capital One Financial and Oportun Financial, as reported by MarketBeat.com.

	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 currently has a consensus price target of $258.91, indicating a potential upside of 25.17%. Oportun Financial has a consensus price target of $7.33, indicating a potential downside of 6.16%. Given Capital One Financial’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Capital One Financial is more favorable than Oportun Financial.

Earnings & Valuation

This table compares Capital One Financial and Oportun Financial”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	1.83	$2.45 billion	$16.16	12.80
Oportun Financial	$956.70 million	0.38	$25.25 million	$0.40	19.54

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.

Risk and Volatility

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

Institutional and Insider Ownership

89.8% of Capital One Financial shares are owned by institutional investors. Comparatively, 82.7% of Oportun Financial shares are owned by institutional investors. 0.8% of Capital One Financial shares are owned by company insiders. Comparatively, 1.6% of Oportun Financial 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.

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.