Nelnet (NYSE:NNI – Get Free Report) and OppFi (NYSE:OPFI – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.
Valuation and Earnings
This table compares Nelnet and OppFi”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nelnet | $2.26 billion | 1.97 | $428.47 million | $8.36 | 14.84 |
| OppFi | $597.05 million | 0.87 | $26.33 million | $1.89 | 3.24 |
Volatility & Risk
Nelnet has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, OppFi has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.
Institutional & Insider Ownership
33.5% of Nelnet shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 40.3% of Nelnet shares are held by company insiders. Comparatively, 70.2% of OppFi shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Nelnet and OppFi, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nelnet | 1 | 2 | 0 | 0 | 1.67 |
| OppFi | 1 | 3 | 2 | 0 | 2.17 |
Nelnet currently has a consensus price target of $140.00, suggesting a potential upside of 12.87%. OppFi has a consensus price target of $10.50, suggesting a potential upside of 71.46%. Given OppFi’s stronger consensus rating and higher probable upside, analysts clearly believe OppFi is more favorable than Nelnet.
Profitability
This table compares Nelnet and OppFi’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nelnet | 14.35% | 8.26% | 2.11% |
| OppFi | 16.64% | 30.89% | 13.99% |
Summary
OppFi beats Nelnet on 8 of the 14 factors compared between the two stocks.
About Nelnet
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
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.
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