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Dave vs. OppFi: Which Fintech Stock is the Smarter Bet Right Now?
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Key Takeaways
DAVE posted a 47% revenue jump and 235% adjusted EBITDA growth in 1Q25.
CashAI helped DAVE cut delinquency by 18% and credit loss ratio to 0.69%.
OPFI grew net income 285.1% and cut net charge-offs by 1300 bps y/y.
Both OppFi Inc. (OPFI - Free Report) and Dave (DAVE - Free Report) operate in the fintech space, addressing customer needs encircling digital lending. DAVE’s primary service is to offer small, interest-free cash advances to users. OPFI works with banks to provide access to credit to subprime/non-prime demography using AI underwriting.
This comparative analysis will help investors determine which stock has more upside potential, thus providing them a better exposure to the fintech industry.
The Case for Dave
DAVE, a leading neobank in the United States, has left its imprint in the fintech space with a subscription-based system wherein members pay $5 per month. This provides customers with access to a different array of services, including ExtraCash, Income Opportunity Service, and Financial Management Services.
ExtraCash, a service that allows customers to borrow up to $500 with no interest or credit checks. With 46% growth in ExtraCash originations, the company registered a 29% rise in average revenues per user in the first quarter of 2025. Its top line gained 47% year over year, whereas adjusted EBITDA exploded to 235% in the March quarter, which is an impressive feat, indicating Dave’s strong operating leverage.
Dave has a robust credit risk management machinery that utilizes CashAI, a proprietary underwriting engine which has significantly enhanced 28-day delinquency rate by 18% year over year. Also, a reduction in the percentage of provision for credit losses to originations from 0.94% to 0.69% in the first quarter of 2025 captures CashAI’s effective capabilities. This technology has aided the company to expand its margins, improving its profitability position.
The company’s pro-active AI-implementation into its credit model has provided a competitive edge, and in doing so, it has been able to resolve 90% of tickets without any involvement from agents.
The Case for OppFi
OPFI’s main target is the underbanked population, which has created a market for the company within the larger alternative lending platform market. The company is utilizing its AI and ML-led technology to serve the subprime or non-prime customers to capture the expanding fintech market.
A 10.1% year-over-year increase in OppFi’s revenue led to a 285.1% surge in adjusted net income in the March quarter. This impressive performance indicates strong operating leverage and disciplined expense management, which are highly attractive to investors.
The company’s profitability depends on customer acquisition and effective risk management. It serves the underbanked with its Model 6, which reduced the net charge-off rate by 700 basis points (bps) from the previous quarter in the first quarter of 2025 and by 1300 bps year over year.
OppFi’s improved credit modelling has enabled it to register 16% year-over-year growth in net originations in the March quarter. Utilizing its ML-based model, it has improved the credit evaluation process, thus identifying and approving applicants with higher credit quality.
That being said, a 79% auto-approval rate, which is an improved metric from the year-ago quarter’s 73%, testifies to the company’s effective credit evaluation models. Banking on ability to automate loan approvals in OppLoans, OPFI challenges the traditional financial service ecosystem.
How Do Estimates Compare for DAVE & OPFI?
The Zacks Consensus Estimate for Dave’s 2025 sales is pegged at $475.8 million, implying a 37.1% year-over-year increase. The consensus estimate for EPS is $8.76, indicating a 67.2% rise from the previous year’s actual. In the past 60 days, two estimates for 2025 have moved upward, with no downward revisions.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OppFi’s 2025 sales is $578.4 million, suggesting 10% year-over-year growth. The consensus estimate for EPS stands at $1.23, indicating a 29.5% year-over-year increase. There have been no recent changes or revisions in analyst estimates.
Image Source: Zacks Investment Research
OppFi Trades Cheaper Than Dave
OPFI is currently trading at a forward 12-month P/E ratio of 8.5X, in line with the 12-month median. DAVE is trading at 18.53X, significantly lower than the 12-month median of 32.47X. OppFi’s valuation is significantly lower than that of Dave, making it a more attractive stock.
Image Source: Zacks Investment Research
Verdict
DAVE outshines OPFI as the better fintech investment. With 47% revenue growth and a 235% surge in adjusted EBITDA, Dave demonstrates superior operating leverage. Its AI-powered CashAI system not only improves underwriting but also automates 90% of customer service, enhancing efficiency and profitability.
While OppFi boasts solid credit modeling, Dave’s subscription-based neobank model, faster-growing user base, and stronger upward earnings revisions give it a sharper competitive edge. Despite a higher valuation, DAVE’s growth trajectory justifies the premium. Backed by innovation, scalability and forward momentum, Dave stands out as the clear winner in this fintech face-off.
Image: Bigstock
Dave vs. OppFi: Which Fintech Stock is the Smarter Bet Right Now?
Key Takeaways
Both OppFi Inc. (OPFI - Free Report) and Dave (DAVE - Free Report) operate in the fintech space, addressing customer needs encircling digital lending. DAVE’s primary service is to offer small, interest-free cash advances to users. OPFI works with banks to provide access to credit to subprime/non-prime demography using AI underwriting.
This comparative analysis will help investors determine which stock has more upside potential, thus providing them a better exposure to the fintech industry.
The Case for Dave
DAVE, a leading neobank in the United States, has left its imprint in the fintech space with a subscription-based system wherein members pay $5 per month. This provides customers with access to a different array of services, including ExtraCash, Income Opportunity Service, and Financial Management Services.
ExtraCash, a service that allows customers to borrow up to $500 with no interest or credit checks. With 46% growth in ExtraCash originations, the company registered a 29% rise in average revenues per user in the first quarter of 2025. Its top line gained 47% year over year, whereas adjusted EBITDA exploded to 235% in the March quarter, which is an impressive feat, indicating Dave’s strong operating leverage.
Dave has a robust credit risk management machinery that utilizes CashAI, a proprietary underwriting engine which has significantly enhanced 28-day delinquency rate by 18% year over year. Also, a reduction in the percentage of provision for credit losses to originations from 0.94% to 0.69% in the first quarter of 2025 captures CashAI’s effective capabilities. This technology has aided the company to expand its margins, improving its profitability position.
The company’s pro-active AI-implementation into its credit model has provided a competitive edge, and in doing so, it has been able to resolve 90% of tickets without any involvement from agents.
The Case for OppFi
OPFI’s main target is the underbanked population, which has created a market for the company within the larger alternative lending platform market. The company is utilizing its AI and ML-led technology to serve the subprime or non-prime customers to capture the expanding fintech market.
A 10.1% year-over-year increase in OppFi’s revenue led to a 285.1% surge in adjusted net income in the March quarter. This impressive performance indicates strong operating leverage and disciplined expense management, which are highly attractive to investors.
The company’s profitability depends on customer acquisition and effective risk management. It serves the underbanked with its Model 6, which reduced the net charge-off rate by 700 basis points (bps) from the previous quarter in the first quarter of 2025 and by 1300 bps year over year.
OppFi’s improved credit modelling has enabled it to register 16% year-over-year growth in net originations in the March quarter. Utilizing its ML-based model, it has improved the credit evaluation process, thus identifying and approving applicants with higher credit quality.
That being said, a 79% auto-approval rate, which is an improved metric from the year-ago quarter’s 73%, testifies to the company’s effective credit evaluation models. Banking on ability to automate loan approvals in OppLoans, OPFI challenges the traditional financial service ecosystem.
How Do Estimates Compare for DAVE & OPFI?
The Zacks Consensus Estimate for Dave’s 2025 sales is pegged at $475.8 million, implying a 37.1% year-over-year increase. The consensus estimate for EPS is $8.76, indicating a 67.2% rise from the previous year’s actual. In the past 60 days, two estimates for 2025 have moved upward, with no downward revisions.
The Zacks Consensus Estimate for OppFi’s 2025 sales is $578.4 million, suggesting 10% year-over-year growth. The consensus estimate for EPS stands at $1.23, indicating a 29.5% year-over-year increase. There have been no recent changes or revisions in analyst estimates.
OppFi Trades Cheaper Than Dave
OPFI is currently trading at a forward 12-month P/E ratio of 8.5X, in line with the 12-month median. DAVE is trading at 18.53X, significantly lower than the 12-month median of 32.47X. OppFi’s valuation is significantly lower than that of Dave, making it a more attractive stock.
Verdict
DAVE outshines OPFI as the better fintech investment. With 47% revenue growth and a 235% surge in adjusted EBITDA, Dave demonstrates superior operating leverage. Its AI-powered CashAI system not only improves underwriting but also automates 90% of customer service, enhancing efficiency and profitability.
While OppFi boasts solid credit modeling, Dave’s subscription-based neobank model, faster-growing user base, and stronger upward earnings revisions give it a sharper competitive edge. Despite a higher valuation, DAVE’s growth trajectory justifies the premium. Backed by innovation, scalability and forward momentum, Dave stands out as the clear winner in this fintech face-off.
DAVE currently flaunts a Zacks Rank #1 (Strong Buy), whereas OPFI has a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.