Financial Comparison: ZIP (OTCMKTS:ZIZTF) & Open Lending (NASDAQ:LPRO)
by Sarita Garza · The Markets DailyZIP (OTCMKTS:ZIZTF – Get Free Report) and Open Lending (NASDAQ:LPRO – Get Free Report) are both financial services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Institutional and Insider Ownership
78.1% of Open Lending shares are owned by institutional investors. 15.0% of Open Lending shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares ZIP and Open Lending”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ZIP | N/A | N/A | N/A | N/A | N/A |
| Open Lending | $98.42 million | 6.67 | $22.07 million | $0.11 | 50.09 |
Open Lending has higher revenue and earnings than ZIP.
Analyst Recommendations
This is a breakdown of current ratings and price targets for ZIP and Open Lending, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ZIP | 0 | 0 | 0 | 0 | N/A |
| Open Lending | 0 | 6 | 3 | 0 | 2.33 |
Open Lending has a consensus price target of $6.56, suggesting a potential upside of 19.10%. Given Open Lending’s higher probable upside, analysts plainly believe Open Lending is more favorable than ZIP.
Profitability
This table compares ZIP and Open Lending’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ZIP | N/A | N/A | N/A |
| Open Lending | 6.25% | 2.90% | 1.62% |
Summary
Open Lending beats ZIP on 8 of the 8 factors compared between the two stocks.
About ZIP
Zip Co Limited engages in the provision of digital retail finance and payments solutions to consumers, and small and medium sized merchants (SMEs) in Australia, New Zealand, Canada, and the United States. The company offers Buy Now Pay Later services, which offer line of credit and installment products to consumers through online and in-store. It also provides unsecured loans and lines of credit to SMEs. The company was formerly known as ZipMoney Limited and changed its name to Zip Co Limited in December 2017. Zip Co Limited was incorporated in 2009 and is headquartered in Sydney, Australia.
About Open Lending
Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, finance companies, and captive finance companies of automakers in the United States. The company offers Lenders Protection Program (LPP), which is a cloud-based automotive lending platform that provides loan analytics solutions and automated issuance of credit default insurance with third-party insurance providers. Its LPP products include loan analytics, risk-based loan pricing, risk modeling, and automated decision technology for automotive lenders. Open Lending Corporation was founded in 2000 and is based in Austin, Texas.