Oportun Financial (NASDAQ:OPRT – Get Free Report) and Bread Financial (NYSE:BFH – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.
Institutional & Insider Ownership
82.7% of Oportun Financial shares are held by institutional investors. Comparatively, 99.5% of Bread Financial shares are held by institutional investors. 1.6% of Oportun Financial shares are held by company insiders. Comparatively, 1.3% of Bread Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Oportun Financial and Bread 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% |
| Bread Financial | 11.95% | 18.42% | 2.76% |
Valuation and Earnings
This table compares Oportun Financial and Bread Financial”s top-line 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 | 0.45 | $25.25 million | $0.40 | 23.27 |
| Bread Financial | $4.70 billion | 0.84 | $518.00 million | $12.82 | 8.00 |
Bread Financial has higher revenue and earnings than Oportun Financial. Bread 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.
Volatility & Risk
Oportun Financial has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Bread Financial has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Oportun Financial and Bread Financial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oportun Financial | 0 | 3 | 2 | 0 | 2.40 |
| Bread Financial | 1 | 7 | 8 | 0 | 2.44 |
Oportun Financial currently has a consensus price target of $7.75, indicating a potential downside of 16.76%. Bread Financial has a consensus price target of $112.29, indicating a potential upside of 9.43%. Given Bread Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Bread Financial is more favorable than Oportun Financial.
Summary
Bread Financial beats Oportun Financial on 11 of the 14 factors compared between the two stocks.
About Oportun Financial
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 Bread Financial
Bread Financial Holdings, Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for private label and co-brand credit card programs, as well as through Bread partnerships; and Comenity-branded general purpose cash-back credit. The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs, and installment loans and split-pay products; and provides marketing, and data and analytics services. In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience. Further, the company through Bread, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products. It offers its products under the Bread CashbackTM, Bread PayTM, and Bread SavingsTM brands. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings, Inc. in March 2022. Bread Financial Holdings, Inc. was incorporated in 1995 and is headquartered in Columbus, Ohio.
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