Head-To-Head Survey: Oportun Financial (NASDAQ:OPRT) versus Yirendai (NYSE:YRD)

Yirendai (NYSE:YRD) and Oportun Financial (NASDAQ:OPRT) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Risk & Volatility

Yirendai has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Oportun Financial has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.

Valuation & Earnings

This table compares Yirendai and Oportun Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yirendai	$817.84 million	0.04	$7.80 million	($2.50)	-0.14
Oportun Financial	$395.98 million	1.35	$25.25 million	$0.74	15.68

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

Insider and Institutional Ownership

2.0% of Yirendai shares are held by institutional investors. Comparatively, 82.7% of Oportun Financial shares are held by institutional investors. 42.2% of Yirendai shares are held by company insiders. Comparatively, 1.6% of Oportun Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Yirendai and Oportun Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yirendai	1	0	0	0	1.00
Oportun Financial	0	3	2	0	2.40

Oportun Financial has a consensus price target of $9.25, suggesting a potential downside of 20.26%. Given Oportun Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Oportun Financial is more favorable than Yirendai.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yirendai	-35.36%	-17.30%	-11.97%
Oportun Financial	3.88%	14.99%	1.87%

Summary

Oportun Financial beats Yirendai on 11 of the 13 factors compared between the two stocks.

About Yirendai

Yiren Digital Ltd. provides financial services through an AI-powered platform in China. Its platform provides a suite of financial and lifestyle services. The company offers financial services, which provides a portfolio of loan products to borrowers; insurance brokerage services; and consumption and lifestyle services, including non-financial products and services to meet various consumer needs. It supports clients at various growth stages, addressing financing needs arising from consumption and production activities, and augmenting the well-being and security of individuals, families, and businesses. The company was formerly known as Yirendai Ltd. and changed its name to Yiren Digital Ltd. in September 2019. Yiren Digital Ltd. was founded in 2012 and is based in Beijing, the People's Republic of China. Yiren Digital Ltd. operates as a subsidiary of CreditEase Holdings (Cayman) Limited.

About Oportun Financial

Oportun Financial Corporation provides financial services. The company offers personal loans and credit cards. It serves customers through online and over the phone, as well as through retail and Lending as a Service partner locations. The company was founded in 2005 and is headquartered in San Carlos, California.