OppFi (NYSE:OPFI) vs. TeraWulf (NASDAQ:WULF) Critical Review

OppFi (NYSE:OPFI) and TeraWulf (NASDAQ:WULF) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Analyst Recommendations

This is a summary of recent recommendations for OppFi and TeraWulf, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	0	0	2	0	3.00
TeraWulf	0	0	8	1	3.11

OppFi presently has a consensus target price of $4.25, indicating a potential upside of 26.49%. TeraWulf has a consensus target price of $5.35, indicating a potential downside of 1.83%. Given OppFi’s higher probable upside, analysts clearly believe OppFi is more favorable than TeraWulf.

Profitability

This table compares OppFi and TeraWulf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OppFi	0.83%	25.16%	8.14%
TeraWulf	-56.70%	-30.00%	-16.17%

Insider & Institutional Ownership

7.1% of OppFi shares are owned by institutional investors. Comparatively, 62.5% of TeraWulf shares are owned by institutional investors. 84.0% of OppFi shares are owned by insiders. Comparatively, 24.9% of TeraWulf shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

OppFi has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, TeraWulf has a beta of 2.57, indicating that its stock price is 157% more volatile than the S&P 500.

Earnings and Valuation

This table compares OppFi and TeraWulf’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$508.95 million	0.73	-$1.00 million	$0.06	56.01
TeraWulf	$69.23 million	26.23	-$73.42 million	N/A	N/A

OppFi has higher revenue and earnings than TeraWulf.

Summary

OppFi beats TeraWulf on 7 of the 13 factors compared between the two stocks.

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.

About TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.