Head to Head Comparison: OppFi (NYSE:OPFI) and Nelnet (NYSE:NNI)

Nelnet (NYSE:NNI – Get Free Report) and OppFi (NYSE:OPFI – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Nelnet and OppFi, as provided by MarketBeat.

Nelnet currently has a consensus target price of $140.00, suggesting a potential upside of 12.87%. OppFi has a consensus target price of $10.50, suggesting a potential upside of 71.46%. Given OppFi’s stronger consensus rating and higher possible upside, analysts plainly believe OppFi is more favorable than Nelnet.

Insider and Institutional Ownership

33.5% of Nelnet shares are owned by institutional investors. Comparatively, 7.1% of OppFi shares are owned by institutional investors. 40.3% of Nelnet shares are owned by insiders. Comparatively, 70.2% of OppFi shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Nelnet has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, OppFi has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.

Earnings and Valuation

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

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

Profitability

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

Summary

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

About Nelnet

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Nelnet, Inc. engages in loan servicing, communications, education technology, services, and payment processing businesses worldwide. The Loan Servicing and Systems segment provides loan conversion, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliation, and claim processing services. This segment also offers student loan servicing software; business process outsourcing services specialized in contact center management, such as inbound calls, outreach campaigns and sales, and interacting with customers through multi-channels, and processing and technology services. The Education Technology Services and Payments segment provides financial management services; school information system software; website design and cost-effective admissions software; FACTS Giving, a donation platform; and customized professional development and coaching services, educational instruction services, and technology products that aid in teacher and student evaluations. This segment also offers tuition payment plans, and service and technology for student billings, payments, and refunds; solutions for in-person, online, and mobile payment experiences on campus; payment processing services, such as credit card and electronic transfer; faith community, giving, and learning management services and technologies; and an integrated commerce payment platform, financial management, and tuition payment plan services, as well as a school management platform that provides administrative, information and financial management, and communication functions for K-12 schools. The Asset Generation and Management segment acquires, manages, and owns loan assets. The Nelnet Bank segment operates as an internet industrial bank. It also offers investment advisory, insurance, and reinsurance services, as well as engages in real estate investment business. The company was incorporated in 1977 and is headquartered in Lincoln, Nebraska.

About OppFi

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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.