Head-To-Head Contrast: PPDAI Group (FINV) versus Its Competitors

PPDAI Group (NYSE:FINV) is one of 120 public companies in the “Consumer Finance” industry, but how does it compare to its competitors? We will compare PPDAI Group to related businesses based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

31.1% of PPDAI Group shares are held by institutional investors. Comparatively, 45.7% of shares of all “Consumer Finance” companies are held by institutional investors. 44.0% of PPDAI Group shares are held by company insiders. Comparatively, 22.0% of shares of all “Consumer Finance” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

PPDAI Group has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500. Comparatively, PPDAI Group’s competitors have a beta of 1.26, indicating that their average share price is 26% more volatile than the S&P 500.

Profitability

This table compares PPDAI Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PPDAI Group	14.49%	12.31%	7.95%
PPDAI Group Competitors	10.33%	-15.81%	1.99%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for PPDAI Group and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPDAI Group	1	1	0	0	1.50
PPDAI Group Competitors	892	3357	5294	275	2.50

PPDAI Group currently has a consensus target price of $4.10, suggesting a potential upside of 42.61%. As a group, “Consumer Finance” companies have a potential upside of 22.26%. Given PPDAI Group’s higher probable upside, analysts clearly believe PPDAI Group is more favorable than its competitors.

Valuation & Earnings

This table compares PPDAI Group and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PPDAI Group	$1.94 billion	$363.56 million	2.71
PPDAI Group Competitors	$3.68 billion	$385.17 million	6.20

PPDAI Group’s competitors have higher revenue and earnings than PPDAI Group. PPDAI Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

PPDAI Group competitors beat PPDAI Group on 8 of the 13 factors compared.

About PPDAI Group

PPDAI Group, now known as FinVolution Group, operates an online consumer finance platform that connects individual borrowers with financial institutions and other funding partners. The company uses technology and data analytics to support borrower assessment, risk management and loan facilitation. Founded in China, the company has expanded beyond its home market into countries in Southeast Asia, including Indonesia and the Philippines. Its platform serves consumers seeking credit and partners seeking technology-enabled access to consumer lending opportunities.