Financial Review: Oportun Financial (NASDAQ:OPRT) and Ally Financial (NASDAQ:ALLY)

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Ally Financial (NYSE:ALLY) and Oportun Financial (NASDAQ:OPRT) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Ally Financial 26.29% 10.69% 0.83%
Oportun Financial N/A N/A N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Ally Financial and Oportun Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ally Financial 0 4 7 0 2.64
Oportun Financial 0 0 6 0 3.00

Ally Financial presently has a consensus price target of $36.91, indicating a potential upside of 16.58%. Oportun Financial has a consensus price target of $20.33, indicating a potential upside of 0.36%. Given Ally Financial’s higher probable upside, analysts clearly believe Ally Financial is more favorable than Oportun Financial.

Institutional & Insider Ownership

95.2% of Ally Financial shares are owned by institutional investors. Comparatively, 46.2% of Oportun Financial shares are owned by institutional investors. 0.4% of Ally Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Ally Financial and Oportun Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ally Financial $5.80 billion 2.07 $1.26 billion $3.34 9.48
Oportun Financial N/A N/A N/A N/A N/A

Ally Financial has higher revenue and earnings than Oportun Financial.

Summary

Ally Financial beats Oportun Financial on 8 of the 9 factors compared between the two stocks.

Ally Financial Company Profile

Ally Financial Inc. provides various financial products and services to consumers, businesses, automotive dealers, and corporate customers primarily in the United States and Canada. It operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments. The Automotive Finance Operations segment offers automotive financing services, including providing retail installment sales contracts, loans and operating leases, term loans to dealers, financing dealer floorplans, other lines of credit to dealers, warehouse lines to automotive retailers, and fleet financing. It also offers financing services to companies and municipalities for the purchase or lease of vehicles, and vehicle-remarketing services. The Insurance Operations segment provides consumer finance protection and insurance products through the automotive dealer channel, and commercial insurance products directly to dealers. The Mortgage Finance Operations segment manages held-for-investment consumer mortgage finance loan portfolio that includes bulk purchases of jumbo and low-to-moderate income mortgage loans originated by third parties, as well as direct-to-consumer mortgage offerings. The Corporate Finance Operations segment offers senior secured leveraged cash flow and asset-based loans to middle market companies. It primarily focuses on businesses owned by private equity sponsors with loans used for leveraged buyouts, mergers and acquisitions, debt refinancing, restructurings, and working capital. The company, through its subsidiary, Ally Bank, also provides commercial banking products and services. In addition, it offers digital securities brokerage and investment advisory services. The company was formerly known as GMAC Inc. and changed its name to Ally Financial Inc. in May 2010. Ally Financial Inc. was founded in 1919 and is headquartered in Detroit, Michigan.

Oportun Financial Company Profile

Oportun is a high-growth, mission-driven CDFI and provider of inclusive, affordable financial services powered by a deep, data-driven understanding of its customers and advanced proprietary technology. By lending money to hardworking, low-to-moderate-income individuals, Oportun helps them move forward in their lives, demonstrate their creditworthiness, and establish the credit history they need to access new opportunities. Oportun serves customers online, over the phone, or in person in English and Spanish in the following 12 states: Arizona, California, Florida, Idaho, Illinois, Missouri, Nevada, New Jersey, New Mexico, Texas, Utah, and Wisconsin.

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