Nelnet (NYSE:NNI – Get Free Report) and Oportun Financial (NASDAQ:OPRT – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
Risk and Volatility
Nelnet has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Oportun Financial has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.
Institutional & Insider Ownership
33.5% of Nelnet shares are owned by institutional investors. Comparatively, 82.7% of Oportun Financial shares are owned by institutional investors. 40.3% of Nelnet shares are owned by insiders. Comparatively, 1.6% of Oportun Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Nelnet and Oportun Financial”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nelnet | $1.44 billion | 3.28 | $428.47 million | $7.55 | 17.44 |
| Oportun Financial | $417.50 million | 1.25 | $25.25 million | $0.74 | 15.36 |
Nelnet has higher revenue and earnings than Oportun Financial. Oportun Financial is trading at a lower price-to-earnings ratio than Nelnet, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Nelnet and Oportun Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nelnet | 12.93% | 7.15% | 1.82% |
| Oportun Financial | 3.88% | 14.67% | 1.87% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Nelnet and Oportun Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nelnet | 1 | 2 | 0 | 0 | 1.67 |
| Oportun Financial | 0 | 3 | 2 | 0 | 2.40 |
Nelnet currently has a consensus price target of $125.00, suggesting a potential downside of 5.05%. Oportun Financial has a consensus price target of $9.25, suggesting a potential downside of 18.65%. Given Nelnet’s higher possible upside, equities analysts plainly believe Nelnet is more favorable than Oportun Financial.
Summary
Nelnet beats Oportun Financial 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 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.
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