Yirendai (NYSE:YRD – Get Free Report) and Oportun Financial (NASDAQ:OPRT – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.
Valuation and Earnings
This table compares Yirendai and Oportun Financial”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Yirendai | $817.84 million | 0.04 | $7.80 million | ($2.50) | -0.14 |
| Oportun Financial | $395.98 million | 1.35 | $25.25 million | $0.74 | 15.68 |
Oportun Financial has lower revenue, but higher earnings than Yirendai. Yirendai is trading at a lower price-to-earnings ratio than Oportun Financial, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
2.0% of Yirendai shares are owned by institutional investors. Comparatively, 82.7% of Oportun Financial shares are owned by institutional investors. 42.2% of Yirendai shares are owned by insiders. Comparatively, 1.6% of Oportun Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Yirendai has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Oportun Financial has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.
Profitability
This table compares Yirendai and Oportun Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Yirendai | -35.36% | -17.30% | -11.97% |
| Oportun Financial | 3.88% | 14.99% | 1.87% |
Analyst Recommendations
This is a summary of current ratings and price targets for Yirendai and Oportun Financial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Yirendai | 1 | 0 | 0 | 0 | 1.00 |
| Oportun Financial | 0 | 3 | 2 | 0 | 2.40 |
Oportun Financial has a consensus price target of $9.25, indicating a potential downside of 20.26%. Given Oportun Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Oportun Financial is more favorable than Yirendai.
Summary
Oportun Financial beats Yirendai on 11 of the 13 factors compared between the two stocks.
About Yirendai
Yiren Digital Ltd. provides financial services through an AI-powered platform in China. Its platform provides a suite of financial and lifestyle services. The company offers financial services, which provides a portfolio of loan products to borrowers; insurance brokerage services; and consumption and lifestyle services, including non-financial products and services to meet various consumer needs. It supports clients at various growth stages, addressing financing needs arising from consumption and production activities, and augmenting the well-being and security of individuals, families, and businesses. The company was formerly known as Yirendai Ltd. and changed its name to Yiren Digital Ltd. in September 2019. Yiren Digital Ltd. was founded in 2012 and is based in Beijing, the People's Republic of China. Yiren Digital Ltd. operates as a subsidiary of CreditEase Holdings (Cayman) Limited.
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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