ZACKS·2025-11-26 16:56Core Insights - Both OppFi Inc. (OPFI) and Nu Holdings Ltd. (NU) are fintech companies focusing on consumer lending for underserved populations and emerging credit markets [1] Group 1: OppFi Inc. (OPFI) - OPFI reported Q3 2025 revenues of $155.1 million, reflecting a 13.5% year-over-year growth driven by a 12.5% increase in net originations and a 79% auto approval rate [2][3] - Adjusted net income for OPFI improved by 41.4% year-over-year to $40.7 million, supported by strong revenue growth and disciplined expense management [3] - Management raised 2025 revenue guidance to $590-$605 million and adjusted EPS expectations to $1.54-$1.60, indicating strong demand and operational enhancements [4] - OPFI's forward earnings multiple is 5.68 times, lower than its 12-month median of 6.91 times, making it more attractive to value investors [13] Group 2: Nu Holdings Ltd. (NU) - NU achieved a 39% year-over-year revenue growth in Q3 2025, adding 4.3 million new customers, bringing the total to 110.1 million across Brazil, Mexico, and Colombia [5][6] - Gross profit for NU reached $1.8 billion, a 32% increase year-over-year, with a margin expansion to 43.5% [6] - NU's deposits grew by 37.1% year-over-year to $38.8 billion, and its loan portfolio increased by 42% to $30.4 billion, indicating strong asset quality [7] - NU's forward earnings multiple stands at 20.76 times, slightly above its median of 20.71, suggesting a higher valuation compared to OPFI [13] Group 3: Comparative Analysis - The Zacks Consensus Estimate for OPFI's 2025 sales indicates a year-over-year growth of 13.6%, while NU's estimates show a 35.9% increase [9][11] - OPFI's Zacks Rank is 1 (Strong Buy), while NU carries a Zacks Rank of 2 (Buy), indicating a stronger investment appeal for OPFI [17] - Both companies are positioned as compelling fintech players, but OPFI is considered to offer better upside potential due to its lower valuation compared to NU [16]