Yirendai (NYSE:YRD – Get Free Report) and Oportun Financial (NASDAQ:OPRT – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.
Profitability
This table compares Yirendai and Oportun Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Yirendai | -35.36% | -17.30% | -11.97% |
| Oportun Financial | 3.88% | 14.67% | 1.87% |
Volatility and Risk
Yirendai has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Oportun Financial has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.
Institutional and Insider Ownership
2.0% of Yirendai shares are owned by institutional investors. Comparatively, 82.7% of Oportun Financial shares are owned by institutional investors. 42.2% of Yirendai shares are owned by insiders. Comparatively, 1.6% of Oportun Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Yirendai and Oportun Financial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Yirendai | $817.84 million | 0.04 | $7.80 million | ($2.50) | -0.14 |
| Oportun Financial | $417.50 million | 1.29 | $25.25 million | $0.74 | 15.84 |
Oportun Financial has lower revenue, but higher earnings than Yirendai. Yirendai is trading at a lower price-to-earnings ratio than Oportun Financial, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for Yirendai and Oportun Financial, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Yirendai | 1 | 0 | 0 | 0 | 1.00 |
| Oportun Financial | 0 | 3 | 2 | 1 | 2.67 |
Oportun Financial has a consensus target price of $9.25, suggesting a potential downside of 21.08%. Given Oportun Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Oportun Financial is more favorable than Yirendai.
Summary
Oportun Financial beats Yirendai on 13 of the 15 factors compared between the two stocks.
About Yirendai
Yirendai, now known as Yiren Digital Limited, is a China-based fintech company that provides digital financial services. The company operates an online platform focused primarily on consumer finance, helping individual borrowers access credit and providing related financial products and services through digital channels. Founded in 2012 as a subsidiary of CreditEase, Yirendai was among the early Chinese online lending platforms to access international public markets. In response to regulatory changes affecting China’s peer-to-peer lending industry, the company broadened its business beyond its original online lending marketplace and developed additional consumer finance and wealth management offerings.
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.
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