Investors are closely evaluating the investment potential of two small-cap business services companies: OppFi Inc. and Ryvyl Inc.. This analysis compares both firms based on key financial metrics, including analyst recommendations, earnings performance, institutional ownership, profitability, and risk factors.
Risk and Volatility Assessment
The volatility of a company’s stock can significantly affect investor decisions. Ryvyl has a beta of 2.79, indicating its share price is approximately 179% more volatile than the S&P 500 index. In contrast, OppFi has a beta of 1.69, suggesting it is 69% more volatile than the benchmark index. This higher risk associated with Ryvyl may deter some risk-averse investors.
Profitability and Analyst Ratings
When examining profitability, key metrics such as net margins, return on equity, and return on assets are essential. Analysts have set a consensus price target for OppFi at $13.63, which implies a potential upside of 38.32%. This optimistic outlook suggests that analysts view OppFi as a more favorable investment compared to Ryvyl.
Institutional ownership plays a vital role in investment confidence. Currently, 17.4% of Ryvyl’s shares are held by institutional investors, whereas only 7.1% of OppFi’s shares are owned by such entities. Interestingly, insiders hold 72.0% of OppFi’s shares compared to 12.4% for Ryvyl, indicating a strong commitment from the company’s management.
Valuation and Earnings Comparison
A direct comparison of revenue and earnings reveals that OppFi generally outperforms Ryvyl. OppFi boasts higher revenue and earnings per share (EPS). Furthermore, it is trading at a lower price-to-earnings ratio than Ryvyl, suggesting that it offers better value for investors at this time.
In summary, OppFi surpasses Ryvyl in 12 out of 15 critical factors analyzed, making it a more attractive option for prospective investors.
About Ryvyl, Inc.
Ryvyl Inc., based in San Diego, California, specializes in developing blockchain-based payment solutions across various regions, including North America, Europe, and Asia. The company’s products include the QuickCard Payment System, which manages both physical and virtual payment card processing, and ChargeSavvy, a comprehensive point-of-sale solution for the hospitality industry. Previously known as GreenBox POS, Ryvyl rebranded in October 2022.
About OppFi, Inc.
Founded in 2012 and headquartered in Chicago, Illinois, OppFi Inc. operates a specialty finance platform to provide credit access through various products. These include OppLoans, a type of installment loan, and the OppFi Card, a credit card offering. The company focuses on delivering financial solutions designed to meet the needs of consumers.
Investors seeking to make informed decisions should consider these detailed comparisons when evaluating the long-term growth potential of OppFi and Ryvyl.
