OppFi (NYSE:OPFI) and Credit Acceptance (NASDAQ:CACC) Financial Review

OppFi (NYSE:OPFI) and Credit Acceptance (NASDAQ:CACC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Volatility & Risk

OppFi has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500. Comparatively, Credit Acceptance has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	1	3	2	0	2.17
Credit Acceptance	1	3	0	0	1.75

OppFi presently has a consensus target price of $10.50, indicating a potential upside of 75.82%. Credit Acceptance has a consensus target price of $505.00, indicating a potential downside of 0.47%. Given OppFi’s stronger consensus rating and higher probable upside, research analysts clearly believe OppFi is more favorable than Credit Acceptance.

Earnings & Valuation

This table compares OppFi and Credit Acceptance”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$605.53 million	0.84	$26.33 million	$1.52	3.93
Credit Acceptance	$2.32 billion	2.22	$423.90 million	$30.62	16.57

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OppFi	15.62%	25.06%	12.26%
Credit Acceptance	14.39%	33.84%	5.84%

Insider & Institutional Ownership

7.1% of OppFi shares are owned by institutional investors. Comparatively, 81.7% of Credit Acceptance shares are owned by institutional investors. 70.2% of OppFi shares are owned by insiders. Comparatively, 6.1% of Credit Acceptance shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

About OppFi

OppFi Inc. is a financial technology company that provides consumer credit products, including personal installment loans and a credit card. Its digital platform is designed to help people who may have difficulty obtaining credit through traditional financial institutions access financial services. The company works with bank partners to offer its products, while providing technology and customer-support services. Product availability and terms can vary by state. Originally known as OppLoans, the company adopted the OppFi name in 2021 when it became publicly traded.

About Credit Acceptance

Credit Acceptance Corporation is an automotive finance company that helps automobile dealers arrange financing for consumers, including buyers who may have difficulty obtaining credit through traditional lenders. The company works with participating dealers to provide financing options at the point of sale. Its programs generally involve purchasing or financing retail installment contracts originated by dealers and then servicing those contracts. Credit Acceptance also provides dealers with tools and support related to vehicle financing and loan management.