Oportun vs. Enova: Which Fintech Lender is the Better Pick Right Now?

Core Insights - Oportun Financial Corporation (OPRT) and Enova International Inc. (ENVA) are fintech companies focused on providing credit solutions to underserved consumers, utilizing advanced analytics and digital platforms to serve non-prime borrowers [1][4]. Company Performance - OPRT shares have increased by 89.7% year-to-date, while ENVA shares have risen by 15.8% [2][10]. - Oportun's total revenues have experienced a five-year compound annual growth rate (CAGR) of 10.8%, despite a decline in the first quarter of 2025 [7]. - Enova's revenues have shown a CAGR of 17.7% over the last five years, with continued momentum into 2025 [13]. Financial Projections - OPRT anticipates 2025 adjusted earnings per share (EPS) to be in the range of $1.10-$1.30, up from 72 cents in 2024, with total revenues expected to be between $945-$970 million [20][22]. - ENVA's consensus estimates indicate a year-over-year revenue increase of 17.8% for 2025 and 14.3% for 2026, with earnings growth of 28.7% and 17.7% for the same years [22][24]. Valuation Analysis - OPRT is currently trading at a price-to-tangible book (P/TB) ratio of 1.22X, while ENVA is trading at 3.31X, indicating that OPRT is undervalued compared to ENVA [10][25][27]. Business Models - Oportun focuses on small-dollar personal loans and financial inclusion, while Enova offers a broader range of products including installment loans and small business loans [29][30]. - Both companies leverage proprietary data analytics and machine learning to enhance underwriting and loan servicing [28]. Strategic Initiatives - Oportun is expanding into new markets and product offerings, including credit cards and secured personal loans, which are expected to drive future financial performance [31]. - Enova's diversified lending portfolio and strong cash flow generation support its growth, although exposure to subprime borrowers poses potential risks [30].