Contrasting WisdomTree (NYSE:WT) and Oportun Financial (NASDAQ:OPRT)

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

Volatility and Risk

WisdomTree has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Oportun Financial has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WisdomTree	21.10%	26.59%	9.51%
Oportun Financial	3.19%	17.61%	2.03%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WisdomTree	$427.74 million	4.11	$66.69 million	$0.65	19.24
Oportun Financial	$1.00 billion	0.22	-$78.68 million	$0.66	7.67

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WisdomTree	0	3	4	1	2.75
Oportun Financial	2	3	2	0	2.00

WisdomTree currently has a consensus target price of $14.08, suggesting a potential upside of 12.62%. Oportun Financial has a consensus target price of $8.50, suggesting a potential upside of 67.98%. Given Oportun Financial’s higher probable upside, analysts plainly believe Oportun Financial is more favorable than WisdomTree.

Institutional and Insider Ownership

78.6% of WisdomTree shares are owned by institutional investors. Comparatively, 82.7% of Oportun Financial shares are owned by institutional investors. 9.3% of WisdomTree shares are owned by insiders. Comparatively, 9.3% of Oportun Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

WisdomTree beats Oportun Financial on 9 of the 14 factors compared between the two stocks.

About WisdomTree

WisdomTree, Inc., through its subsidiaries, operates as an exchange-traded funds (ETFs) sponsor and asset manager. It offers ETFs in equities, currency, fixed income, and alternatives asset classes. The company also licenses its indexes to third parties for proprietary products, as well as offers a platform to promote the use of WisdomTree ETFs in 401(k) plans. It develops index using its fundamentally weighted index methodology. In addition, the company provides investment advisory services. The company was founded in 1985 and is based in New York, New York.

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.