Credit Acceptance (NASDAQ:CACC – Get Free Report) and OppFi (NYSE:OPFI – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.
Analyst Recommendations
This is a breakdown of current recommendations for Credit Acceptance and OppFi, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Credit Acceptance | 1 | 3 | 0 | 0 | 1.75 |
| OppFi | 0 | 4 | 2 | 0 | 2.33 |
Credit Acceptance currently has a consensus price target of $505.00, suggesting a potential downside of 1.56%. OppFi has a consensus price target of $10.50, suggesting a potential upside of 71.43%. Given OppFi’s stronger consensus rating and higher probable upside, analysts clearly believe OppFi is more favorable than Credit Acceptance.
Profitability
This table compares Credit Acceptance and OppFi’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Credit Acceptance | 14.39% | 33.84% | 5.84% |
| OppFi | 15.62% | 26.61% | 12.64% |
Institutional and Insider Ownership
81.7% of Credit Acceptance shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 6.1% of Credit Acceptance shares are held by company insiders. Comparatively, 70.2% of OppFi shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Credit Acceptance has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, OppFi has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500.
Valuation & Earnings
This table compares Credit Acceptance and OppFi”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Credit Acceptance | $2.32 billion | 2.24 | $423.90 million | $30.62 | 16.75 |
| OppFi | $597.05 million | 0.87 | $26.33 million | $1.52 | 4.03 |
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.
About Credit Acceptance
Credit Acceptance Corporation engages in the provision of financing programs, and related products and services in the United States. The company advances money to automobile dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps the amount collected from the consumers. It is also involved in the business of reinsuring coverage under vehicle service contracts sold to consumers by dealers on vehicles financed by the company. The company serves independent and franchised automobile dealers. Credit Acceptance Corporation was incorporated in 1972 and is headquartered in Southfield, Michigan.
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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