Open Lending (NASDAQ:LPRO) & Chesswood Group (OTCMKTS:CHWWF) Head-To-Head Comparison

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

Insider and Institutional Ownership

12.6% of Chesswood Group shares are held by institutional investors. Comparatively, 78.1% of Open Lending shares are held by institutional investors. 15.0% of Open Lending shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Chesswood Group and Open Lending, as provided by MarketBeat.com.

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

Open Lending has a consensus price target of $6.56, indicating a potential upside of 19.10%. Given Open Lending’s higher probable upside, analysts plainly believe Open Lending is more favorable than Chesswood Group.

Earnings and Valuation

This table compares Chesswood Group and Open Lending”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chesswood Group	N/A	N/A	N/A	$0.91	0.10
Open Lending	$98.42 million	6.67	$22.07 million	$0.11	50.09

Open Lending has higher revenue and earnings than Chesswood Group. Chesswood Group is trading at a lower price-to-earnings ratio than Open Lending, indicating that it is currently the more affordable of the two stocks.

Profitability

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

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

Summary

Open Lending beats Chesswood Group on 9 of the 10 factors compared between the two stocks.

About Chesswood Group

Chesswood Group Limited operates primarily in the specialty finance industry in North America. The company offers micro and small-ticket commercial equipment financing and origination to small and medium-sized businesses through the third-party broker and equipment vendor channels; and commercial equipment financing and loans to small and medium-sized businesses. It also provides home improvement and other consumer financing solutions; credit alternatives to investors; consumer financing for motor vehicle purchasers; and specialized financing solutions. The company was formerly known as Chesswood Income Fund and changed its name to Chesswood Group Limited in January 2011. Chesswood Group Limited was founded in 1982 and is headquartered in Toronto, Canada.

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.