2 Exciting Growth Stocks That Could Thrive in a Slow Economy

There are only two pure-play iBuyers on the public market: Opendoor (NASDAQ: OPEN) and Offerpad (NYSE: OPAD). Both went public within the past few years as part of the SPAC boom, and while there are some differences in the exact services and methods, both have generally the same business model. They buy homes directly from sellers, make minor repairs, and aim to resell the homes at a modest profit.

Of the two, Opendoor is by far the largest. Opendoor purchased 14,135 homes in the second quarter, compared with 3,792 for Offerpad. Opendoor also announced an exclusive partnership with Zillow (NASDAQ: Z)(NASDAQ: ZG) to generate iBuying leads, so it's probable that it will remain the larger of the two for the foreseeable future.

However, what Offerpad lacks in size, it makes up for in efficiency. Despite its smaller scale, Offerpad has been the more profitable of the two. It was GAAP profitable for the full year of 2021 as well as for the entire first half of 2022. While I wouldn't call Opendoor's profitability bad, it has operated at a modest loss in most recent quarters. In the second quarter, Opendoor lost $54 million compared with an $11.6 million profit for Offerpad.

Source Fool.com