Critical Analysis: DLocal (NASDAQ:DLO) & OppFi (NYSE:OPFI)

OppFi (NYSE:OPFI) and DLocal (NASDAQ:DLO) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares OppFi and DLocal”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$573.52 million	1.46	$7.26 million	($0.75)	-12.91
DLocal	$745.97 million	6.04	$120.42 million	$0.56	25.74

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OppFi	0.68%	55.59%	20.07%
DLocal	17.80%	37.66%	14.84%

Risk & Volatility

OppFi has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, DLocal has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for OppFi and DLocal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	1	2	2	0	2.20
DLocal	0	4	7	1	2.75

OppFi presently has a consensus price target of $13.63, indicating a potential upside of 40.68%. DLocal has a consensus price target of $16.40, indicating a potential upside of 13.75%. Given OppFi’s higher probable upside, analysts plainly believe OppFi is more favorable than DLocal.

Insider and Institutional Ownership

7.1% of OppFi shares are held by institutional investors. Comparatively, 90.1% of DLocal shares are held by institutional investors. 72.0% of OppFi shares are held by company insiders. Comparatively, 45.4% of DLocal shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

DLocal beats OppFi on 10 of the 15 factors compared between the two stocks.

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.

About DLocal

DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods. It also provides pay-out solution used for merchants to scale pay-out operations. In addition, the company offers dLocal for Platforms, an end-to-end payment solution that offers a range of services to help platforms manage payments. It serves its products to commerce, streaming, ride-hailing, financial services, advertising, SaaS, travel, e-learning, on-demand delivery, and gaming and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.