Analyzing OppFi (NYSE:OPFI) and World Acceptance (NASDAQ:WRLD)

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

Earnings & Valuation

This table compares OppFi and World Acceptance”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$597.05 million	0.87	$26.33 million	$1.52	4.01
World Acceptance	$585.74 million	1.29	$34.59 million	$10.76	15.11

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for OppFi and World Acceptance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	0	4	2	0	2.33
World Acceptance	0	2	0	0	2.00

OppFi presently has a consensus target price of $10.50, suggesting a potential upside of 72.41%. Given OppFi’s stronger consensus rating and higher probable upside, equities analysts plainly believe OppFi is more favorable than World Acceptance.

Insider & Institutional Ownership

7.1% of OppFi shares are owned by institutional investors. Comparatively, 83.6% of World Acceptance shares are owned by institutional investors. 70.2% of OppFi shares are owned by company insiders. Comparatively, 38.0% of World Acceptance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

OppFi has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500. Comparatively, World Acceptance has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OppFi	15.62%	26.61%	12.64%
World Acceptance	8.45%	15.32%	4.97%

Summary

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

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.

About World Acceptance

World Acceptance Corporation engages in consumer finance business in the United States. The company provides short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It offers income tax return preparation and filing services; and automobile club memberships. It serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.