Financial Contrast: Wintrust Financial (NASDAQ:WTFC) and Orion Digital (NASDAQ:ORIO)

Orion Digital (NASDAQ:ORIO) and Wintrust Financial (NASDAQ:WTFC) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Profitability

This table compares Orion Digital and Wintrust Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orion Digital	-24.49%	-6.17%	-2.56%
Wintrust Financial	20.72%	13.37%	1.28%

Institutional and Insider Ownership

14.8% of Orion Digital shares are held by institutional investors. Comparatively, 93.5% of Wintrust Financial shares are held by institutional investors. 12.3% of Orion Digital shares are held by company insiders. Comparatively, 1.2% of Wintrust Financial 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.

Earnings and Valuation

This table compares Orion Digital and Wintrust Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion Digital	$49.11 million	0.49	-$6.11 million	($0.50)	-2.01
Wintrust Financial	$4.23 billion	2.38	$823.84 million	$12.45	11.97

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

Volatility and Risk

Orion Digital has a beta of 2.55, indicating that its stock price is 155% more volatile than the S&P 500. Comparatively, Wintrust Financial has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Orion Digital and Wintrust Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Digital	1	1	0	0	1.50
Wintrust Financial	0	4	9	0	2.69

Wintrust Financial has a consensus target price of $177.77, indicating a potential upside of 19.24%. Given Wintrust Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Wintrust Financial is more favorable than Orion Digital.

Summary

Wintrust Financial beats Orion Digital on 12 of the 14 factors compared between the two stocks.

About Orion Digital

Mogo Inc. operates as a financial technology company in Canada and internationally. The company provides digital solutions to the consumers to get in control of their financial health. It offers Mogo app to access a digital spending account with Mogo Visa Platinum Prepaid Card; MogoCrypto that enables the buying and selling of bitcoin; MogoProtect, a free ID fraud protection and monthly credit score monitoring; MogoMortgage, a digital mortgage experience; and MogoMoney that provides access to personal loans. The company also offers Mogo Trade, a free stock trading platform with real-time stock quotes and funding; and Mogo Ventures to manage its existing investments in strategic partners and companies. In addition, it operates Carta, a digital payments software platform that enable financial technology companies, banks, and corporations to issue payment products to consumers via multiple channels, including physical, virtual, and tokenized cards, as well as payment switching and routing services. Mogo Inc. was founded in 2003 and is headquartered in Vancouver, Canada.

About Wintrust Financial

Wintrust Financial Corporation operates as a financial holding company. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), online and mobile banking, and other services. It also engages in the retail origination and purchase of residential mortgages; and provision of lending, deposits, and treasury management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies. In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. It provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional clients. The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; other specialty finance services; equipment financing through structured loan and lease products; and property and casualty premium financing; as well as data processing of payrolls, billing, and cash management services to temporary staffing industry. The Wealth Management segment provides wealth management services, such as trust and investment, asset management, tax-deferred exchange, securities brokerage, and retirement plan services. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois.