Financial Review: Capital One Financial (NYSE:COF) & Oportun Financial (NASDAQ:OPRT)

Oportun Financial (NASDAQ:OPRTGet Free Report) and Capital One Financial (NYSE:COFGet Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and target prices for Oportun Financial and Capital One Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oportun Financial 1 2 2 0 2.20
Capital One Financial 0 3 21 0 2.88

Oportun Financial currently has a consensus target price of $7.33, suggesting a potential downside of 1.03%. Capital One Financial has a consensus target price of $258.91, suggesting a potential upside of 17.44%. Given Capital One Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Capital One Financial is more favorable than Oportun Financial.

Institutional and Insider Ownership

82.7% of Oportun Financial shares are held by institutional investors. Comparatively, 89.8% of Capital One Financial shares are held by institutional investors. 1.6% of Oportun Financial shares are held by company insiders. Comparatively, 0.8% of Capital One Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Oportun Financial has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Profitability

This table compares Oportun Financial and Capital One Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oportun Financial 2.05% 13.41% 1.66%
Capital One Financial 13.37% 11.28% 1.90%

Earnings & Valuation

This table compares Oportun Financial and Capital One Financial”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oportun Financial $956.70 million 0.36 $25.25 million $0.40 18.52
Capital One Financial $69.25 billion 1.95 $2.45 billion $16.16 13.64

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

Summary

Capital One Financial beats Oportun Financial on 10 of the 14 factors compared between the two stocks.

About Oportun Financial

(Get Free Report)

Oportun Financial Corporation provides financial services. The company offers personal loans and credit cards. It serves customers through online and over the phone, as well as through retail and Lending as a Service partner locations. The company was founded in 2005 and is headquartered in San Carlos, California.

About Capital One Financial

(Get Free Report)

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.

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