Critical Analysis: OppFi (NYSE:OPFI) vs. Binah Capital Group (NASDAQ:BCG)

Binah Capital Group (NASDAQ:BCG) and OppFi (NYSE:OPFI) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Risk and Volatility

Binah Capital Group has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, OppFi has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Binah Capital Group	$164.39 million	0.24	$570,000.00	($0.32)	-7.50
OppFi	$525.96 million	1.36	-$1.00 million	$0.21	39.46

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

Analyst Recommendations

This is a summary of current ratings for Binah Capital Group and OppFi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Binah Capital Group	0	0	0	0	0.00
OppFi	0	2	1	0	2.33

OppFi has a consensus target price of $13.00, indicating a potential upside of 56.89%. Given OppFi’s stronger consensus rating and higher probable upside, analysts clearly believe OppFi is more favorable than Binah Capital Group.

Insider and Institutional Ownership

5.0% of Binah Capital Group shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 83.0% of Binah Capital Group shares are held by insiders. Comparatively, 84.0% of OppFi shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Binah Capital Group and OppFi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Binah Capital Group	-3.06%	-205.99%	-7.62%
OppFi	1.40%	35.04%	12.09%

Summary

OppFi beats Binah Capital Group on 13 of the 14 factors compared between the two stocks.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.

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.