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

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

Profitability

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

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

Institutional & Insider Ownership

25.9% of Paysign shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 24.5% of Paysign shares are held by company insiders. Comparatively, 70.2% of OppFi shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paysign	$82.03 million	5.07	$7.55 million	$0.17	43.76
OppFi	$608.66 million	1.22	$26.33 million	$0.93	9.37

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.

Analyst Recommendations

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

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

Paysign currently has a consensus target price of $10.00, indicating a potential upside of 34.41%. OppFi has a consensus target price of $13.00, indicating a potential upside of 49.25%. Given OppFi’s higher possible upside, analysts clearly believe OppFi is more favorable than Paysign.

Summary

OppFi beats Paysign on 8 of the 14 factors compared between the two stocks.

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.

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.