Financial Review: OneMain (NYSE:OMF) versus Oportun Financial (NASDAQ:OPRT)

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Oportun Financial and OneMain, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oportun Financial	0	3	2	0	2.40
OneMain	1	3	9	0	2.62

Oportun Financial currently has a consensus target price of $9.25, indicating a potential downside of 21.61%. OneMain has a consensus target price of $66.82, indicating a potential upside of 20.52%. Given OneMain’s stronger consensus rating and higher possible upside, analysts clearly believe OneMain is more favorable than Oportun Financial.

Insider & Institutional Ownership

82.7% of Oportun Financial shares are held by institutional investors. Comparatively, 85.8% of OneMain shares are held by institutional investors. 1.6% of Oportun Financial shares are held by insiders. Comparatively, 0.3% of OneMain shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Oportun Financial has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, OneMain has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Profitability

This table compares Oportun Financial and OneMain’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oportun Financial	3.88%	14.67%	1.87%
OneMain	13.43%	21.90%	2.68%

Earnings & Valuation

This table compares Oportun Financial and OneMain”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oportun Financial	$956.70 million	0.57	$25.25 million	$0.74	15.95
OneMain	$5.21 billion	1.22	$783.00 million	$6.57	8.44

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

Summary

OneMain beats Oportun Financial on 12 of the 14 factors compared between the two stocks.

About Oportun Financial

Oportun Financial provides consumer financial products designed primarily for people with limited or no credit history. Its offerings include personal loans and credit cards, supported by technology intended to help customers access credit and build their financial histories. Founded in 2005 as Progreso Financiero, the company later adopted the Oportun name. It serves customers in the United States through digital channels and a network of retail locations. Oportun has also offered savings-related services, including automated savings tools.

About OneMain

OneMain Holdings, Inc. is a consumer finance company that provides personal loans to customers, including borrowers who may have limited access to traditional credit. Its offerings include secured and unsecured installment loans, which customers can apply for through its branches or digital channels. The company also offers credit-related insurance and other products designed to complement its lending services. OneMain serves customers across the United States through a nationwide branch network and online services.