Vroom (NASDAQ:VRM – Get Free Report) and OppFi (NYSE:OPFI – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.
Volatility and Risk
Vroom has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, OppFi has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.
Valuation and Earnings
This table compares Vroom and OppFi”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vroom | $178.83 million | 0.27 | -$7.96 million | ($11.12) | -0.84 |
| OppFi | $597.05 million | 0.85 | $26.33 million | $1.89 | 3.15 |
OppFi has higher revenue and earnings than Vroom. Vroom is trading at a lower price-to-earnings ratio than OppFi, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Vroom and OppFi’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vroom | -32.38% | -47.65% | -5.59% |
| OppFi | 16.64% | 30.89% | 13.99% |
Institutional & Insider Ownership
25.8% of Vroom shares are owned by institutional investors. Comparatively, 7.1% of OppFi shares are owned by institutional investors. 2.9% of Vroom shares are owned by company insiders. Comparatively, 70.2% of OppFi shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings for Vroom and OppFi, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
| OppFi | 1 | 3 | 2 | 0 | 2.17 |
OppFi has a consensus target price of $10.50, indicating a potential upside of 76.32%. Given OppFi’s stronger consensus rating and higher probable upside, analysts plainly believe OppFi is more favorable than Vroom.
Summary
OppFi beats Vroom on 13 of the 14 factors compared between the two stocks.
About Vroom
Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.
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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