OppFi (NYSE:OPFI) and Paymentus (NYSE:PAY) Critical Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OppFi	10.86%	39.90%	15.95%
Paymentus	5.78%	13.75%	11.53%

Risk & Volatility

OppFi has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Paymentus has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.

Valuation and Earnings

This table compares OppFi and Paymentus”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	1.21	$26.33 million	$0.93	9.09
Paymentus	$1.28 billion	2.08	$66.94 million	$0.57	37.05

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

Insider & Institutional Ownership

7.1% of OppFi shares are owned by institutional investors. Comparatively, 78.4% of Paymentus shares are owned by institutional investors. 70.2% of OppFi shares are owned by insiders. Comparatively, 75.4% of Paymentus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for OppFi and Paymentus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	0	3	1	0	2.25
Paymentus	0	3	3	1	2.71

OppFi currently has a consensus price target of $13.00, suggesting a potential upside of 53.76%. Paymentus has a consensus price target of $35.20, suggesting a potential upside of 66.67%. Given Paymentus’ stronger consensus rating and higher probable upside, analysts clearly believe Paymentus is more favorable than OppFi.

Summary

Paymentus 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 Paymentus

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.