Comparing OppFi (NYSE:OPFI) & DLocal (NASDAQ:DLO)

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

Insider & Institutional Ownership

7.1% of OppFi shares are held by institutional investors. Comparatively, 90.1% of DLocal shares are held by institutional investors. 72.0% of OppFi shares are held by insiders. Comparatively, 45.4% of DLocal shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

OppFi has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, DLocal has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	1	2	2	0	2.20
DLocal	0	4	7	1	2.75

OppFi presently has a consensus price target of $13.63, indicating a potential upside of 43.50%. DLocal has a consensus price target of $16.40, indicating a potential upside of 21.84%. Given OppFi’s higher probable upside, equities research analysts plainly believe OppFi is more favorable than DLocal.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OppFi	0.68%	55.59%	20.07%
DLocal	17.80%	37.66%	14.84%

Earnings and Valuation

This table compares OppFi and DLocal”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$525.96 million	1.56	$7.26 million	($0.75)	-12.66
DLocal	$745.97 million	5.64	$120.42 million	$0.56	24.04

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

Summary

DLocal beats OppFi on 10 of the 15 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 DLocal

DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods. It also provides pay-out solution used for merchants to scale pay-out operations. In addition, the company offers dLocal for Platforms, an end-to-end payment solution that offers a range of services to help platforms manage payments. It serves its products to commerce, streaming, ride-hailing, financial services, advertising, SaaS, travel, e-learning, on-demand delivery, and gaming and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.