Head-To-Head Review: OppFi (NYSE:OPFI) & Mogo (NASDAQ:MOGO)

Mogo (NASDAQ:MOGO) and OppFi (NYSE:OPFI) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Mogo and OppFi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mogo	0	0	1	0	3.00
OppFi	0	0	1	0	3.00

Mogo presently has a consensus target price of $6.00, suggesting a potential upside of 421.74%. OppFi has a consensus target price of $5.00, suggesting a potential upside of 23.15%. Given Mogo’s higher possible upside, equities research analysts clearly believe Mogo is more favorable than OppFi.

Valuation & Earnings

This table compares Mogo and OppFi’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mogo	$68.82 million	0.41	-$13.25 million	($0.45)	-2.56
OppFi	$519.74 million	0.87	-$1.00 million	$0.06	67.67

OppFi has higher revenue and earnings than Mogo. Mogo is trading at a lower price-to-earnings ratio than OppFi, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Mogo has a beta of 2.8, suggesting that its stock price is 180% more volatile than the S&P 500. Comparatively, OppFi has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Profitability

This table compares Mogo and OppFi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mogo	-24.68%	-17.25%	-7.49%
OppFi	1.00%	28.73%	9.62%

Institutional & Insider Ownership

14.8% of Mogo shares are owned by institutional investors. Comparatively, 7.1% of OppFi shares are owned by institutional investors. 12.3% of Mogo shares are owned by insiders. Comparatively, 84.0% of OppFi shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

OppFi beats Mogo on 9 of the 12 factors compared between the two stocks.

About Mogo

Mogo Inc. operates as a digital finance company in Canada, Europe, and internationally. The company's digital solutions help build wealth and achieve financial freedom. It provides MogoTrade, a stock trading app; Moka; and MogoMoney that provides online personal loans. The company also offers digital loans and mortgages; and operates a digital payments platform that powers next-generation card programs for both global corporations and fintech companies in Europe and Canada. Mogo Inc. is headquartered in Vancouver, Canada.

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.