Reviewing ZIP (OTCMKTS:ZIZTF) & Open Lending (NASDAQ:LPRO)

ZIP (OTCMKTS:ZIZTF) and Open Lending (NASDAQ:LPRO) are both financial services companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for ZIP and Open Lending, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZIP	0	0	0	0	N/A
Open Lending	0	6	3	0	2.33

Open Lending has a consensus price target of $6.56, suggesting a potential upside of 14.93%. Given Open Lending’s higher probable upside, analysts plainly believe Open Lending is more favorable than ZIP.

Profitability

This table compares ZIP and Open Lending’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZIP	N/A	N/A	N/A
Open Lending	6.25%	2.90%	1.62%

Institutional & Insider Ownership

78.1% of Open Lending shares are held by institutional investors. 15.0% of Open Lending shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares ZIP and Open Lending”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZIP	N/A	N/A	N/A	N/A	N/A
Open Lending	$98.42 million	6.91	$22.07 million	$0.11	51.91

Open Lending has higher revenue and earnings than ZIP.

Summary

Open Lending beats ZIP on 8 of the 8 factors compared between the two stocks.

About ZIP

Zip Co Limited engages in the provision of digital retail finance and payments solutions to consumers, and small and medium sized merchants (SMEs) in Australia, New Zealand, Canada, and the United States. The company offers Buy Now Pay Later services, which offer line of credit and installment products to consumers through online and in-store. It also provides unsecured loans and lines of credit to SMEs. The company was formerly known as ZipMoney Limited and changed its name to Zip Co Limited in December 2017. Zip Co Limited was incorporated in 2009 and is headquartered in Sydney, Australia.

About Open Lending

Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, finance companies, and captive finance companies of automakers in the United States. The company offers Lenders Protection Program (LPP), which is a cloud-based automotive lending platform that provides loan analytics solutions and automated issuance of credit default insurance with third-party insurance providers. Its LPP products include loan analytics, risk-based loan pricing, risk modeling, and automated decision technology for automotive lenders. Open Lending Corporation was founded in 2000 and is based in Austin, Texas.