OppFi (NYSE:OPFI) vs. World Acceptance (NASDAQ:WRLD) Head to Head Review

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

Analyst Recommendations

This is a breakdown of current ratings for World Acceptance and OppFi, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
World Acceptance	0	2	0	0	2.00
OppFi	0	4	2	0	2.33

OppFi has a consensus target price of $10.50, indicating a potential upside of 88.34%. Given OppFi’s stronger consensus rating and higher possible upside, analysts clearly believe OppFi is more favorable than World Acceptance.

Volatility and Risk

World Acceptance has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, OppFi has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.

Earnings & Valuation

This table compares World Acceptance and OppFi”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
World Acceptance	$540.36 million	1.47	$34.59 million	$10.76	15.87
OppFi	$611.39 million	0.78	$26.33 million	$1.89	2.95

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

Institutional & Insider Ownership

83.6% of World Acceptance shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 38.0% of World Acceptance shares are held by company insiders. Comparatively, 70.2% of OppFi shares are held by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
World Acceptance	8.45%	15.32%	4.97%
OppFi	16.64%	30.89%	13.99%

Summary

OppFi beats World Acceptance on 9 of the 14 factors compared between the two stocks.

About World Acceptance

World Acceptance Corporation engages in consumer finance business in the United States. The company provides short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It offers income tax return preparation and filing services; and automobile club memberships. It serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.

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.