Comparing OppFi (NYSE:OPFI) and Paysign (NASDAQ:PAYS)

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

Volatility & Risk

OppFi has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Paysign has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Institutional and Insider Ownership

7.1% of OppFi shares are owned by institutional investors. Comparatively, 25.9% of Paysign shares are owned by institutional investors. 70.2% of OppFi shares are owned by insiders. Comparatively, 24.5% of Paysign shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for OppFi and Paysign, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	0	3	1	0	2.25
Paysign	0	1	2	0	2.67

OppFi currently has a consensus price target of $13.00, suggesting a potential upside of 55.21%. Paysign has a consensus price target of $10.00, suggesting a potential upside of 36.24%. Given OppFi’s higher probable upside, research analysts clearly believe OppFi is more favorable than Paysign.

Valuation & Earnings

This table compares OppFi and Paysign”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$597.05 million	1.20	$26.33 million	$0.93	9.01
Paysign	$82.03 million	5.00	$7.55 million	$0.17	43.18

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OppFi	10.86%	39.90%	15.95%
Paysign	11.38%	21.74%	4.19%

Summary

OppFi beats Paysign on 8 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 Paysign

Paysign, Inc. provides prepaid card programs, comprehensive patient affordability offerings, digital banking services, and integrated payment processing services for businesses, consumers, and government institutions. Its product offerings include solutions for corporate rewards, prepaid gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and pharmaceutical payment assistance, and demand deposit accounts accessible with a debit card. The company markets its prepaid card solutions under the Paysign brand. Its primary market focus is on companies and municipalities that require a streamlined payment solution for rewards, rebates, payment assistance, and other payments to their customers, employees, agents, and others. The company was formerly known as 3PEA International, Inc. and changed its name to Paysign, Inc. in April 2019. Paysign, Inc. was incorporated in 1995 and is headquartered in Henderson, Nevada.