Analyzing Paypoint (OTCMKTS:PYPTF) and OppFi (NYSE:OPFI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OppFi	0.68%	58.48%	20.60%
Paypoint	N/A	N/A	N/A

Risk & Volatility

OppFi has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, Paypoint has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Institutional and Insider Ownership

7.1% of OppFi shares are owned by institutional investors. 72.0% of OppFi shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for OppFi and Paypoint, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	1	2	3	0	2.33
Paypoint	0	0	0	0	0.00

OppFi presently has a consensus price target of $13.63, suggesting a potential upside of 35.53%. Given OppFi’s stronger consensus rating and higher probable upside, analysts clearly believe OppFi is more favorable than Paypoint.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$555.03 million	1.58	$7.26 million	($0.75)	-13.40
Paypoint	$391.23 million	2.57	$24.49 million	N/A	N/A

Paypoint has lower revenue, but higher earnings than OppFi.

Summary

OppFi beats Paypoint on 10 of the 12 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 Paypoint

PayPoint plc engages in the provision of payments and banking, shopping, and e-commerce services and products in the United Kingdom. The company operates through two segments: PayPoint and Love2shop. The PayPoint segment provides card payment services to retailers, including leased payment devices; EPoS; ATM cash machines; SIM cards sales; receipt advertising; bill payment services and cash top-ups to individual consumers; parcel delivery and collection services; retailer service fees solutions; and digital payment services, as well as cash through to digital services. The segment offers its products under PayPoint One, eMoney, MultiPay, CashOut, and Direct Debits platforms. The Love2shop segment is involved in the provision of shopping vouchers, cards, and e-codes which customers may redeem with participating retailers; and Christmas savings club, to which customers make regular payments throughout the year to help spread the cost of Christmas, before converting to a voucher. It serves consumers, SMEs, and convenience retailers in the commercial, not-for-profit, and public sectors. The company was founded in 1996 and is headquartered in Welwyn Garden City, the United Kingdom.