Head to Head Comparison: Oportun Financial (NASDAQ:OPRT) and Katapult (NASDAQ:KPLT)

Katapult (NASDAQ:KPLT) and Oportun Financial (NASDAQ:OPRT) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

26.8% of Katapult shares are owned by institutional investors. Comparatively, 82.7% of Oportun Financial shares are owned by institutional investors. 8.0% of Katapult shares are owned by insiders. Comparatively, 1.6% of Oportun Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Katapult and Oportun Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Katapult	1	0	0	0	1.00
Oportun Financial	0	3	2	0	2.40

Oportun Financial has a consensus price target of $7.75, suggesting a potential downside of 10.51%. Given Oportun Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Oportun Financial is more favorable than Katapult.

Risk & Volatility

Katapult has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Oportun Financial has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Valuation and Earnings

This table compares Katapult 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
Katapult	$291.76 million	0.08	$1.37 million	$1.37	3.26
Oportun Financial	$956.70 million	0.42	$25.25 million	$0.40	21.65

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

Profitability

This table compares Katapult and Oportun Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Katapult	3.60%	-26.41%	10.86%
Oportun Financial	2.05%	13.41%	1.66%

Summary

Oportun Financial beats Katapult on 9 of the 14 factors compared between the two stocks.

About Katapult

Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.

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.