Reviewing Open Lending (NASDAQ:LPRO) & Bread Financial (NYSE:BFH)

Open Lending (NASDAQ:LPROGet Free Report) and Bread Financial (NYSE:BFHGet Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Valuation & Earnings

This table compares Open Lending and Bread Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Open Lending $117.46 million 7.05 $22.07 million $0.11 63.19
Bread Financial $5.17 billion 0.39 $718.00 million $7.94 5.18

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

Insider & Institutional Ownership

78.1% of Open Lending shares are held by institutional investors. Comparatively, 99.5% of Bread Financial shares are held by institutional investors. 15.0% of Open Lending shares are held by company insiders. Comparatively, 0.6% of Bread Financial 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.

Risk and Volatility

Open Lending has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Bread Financial has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500.

Profitability

This table compares Open Lending and Bread Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Open Lending 13.31% 6.87% 3.84%
Bread Financial 8.08% 14.44% 1.88%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Open Lending and Bread Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Open Lending 0 5 3 0 2.38
Bread Financial 4 7 3 0 1.93

Open Lending presently has a consensus target price of $6.79, suggesting a potential downside of 2.36%. Bread Financial has a consensus target price of $39.17, suggesting a potential downside of 4.74%. Given Open Lending’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Open Lending is more favorable than Bread Financial.

Summary

Open Lending beats Bread Financial on 7 of the 13 factors compared between the two stocks.

About Open Lending

(Get Free Report)

Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, finance companies, and captive finance companies of automakers in the United States. The company offers Lenders Protection Program (LPP), which is a cloud-based automotive lending platform that provides loan analytics solutions and automated issuance of credit default insurance with third-party insurance providers. Its LPP products include loan analytics, risk-based loan pricing, risk modeling, and automated decision technology for automotive lenders. Open Lending Corporation was founded in 2000 and is based in Austin, Texas.

About Bread Financial

(Get Free Report)

Bread Financial Holdings, Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for private label and co-brand credit card programs, as well as through Bread partnerships; and Comenity-branded general purpose cash-back credit. The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs, and installment loans and split-pay products; and provides marketing, and data and analytics services. In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience. Further, the company through Bread, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products. It offers its products under the Bread CashbackTM, Bread PayTM, and Bread SavingsTM brands. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings, Inc. in March 2022. Bread Financial Holdings, Inc. was incorporated in 1995 and is headquartered in Columbus, Ohio.

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