Comparing PPDAI Group (FINV) & Its Rivals

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

Insider & Institutional Ownership

31.1% of PPDAI Group shares are owned by institutional investors. Comparatively, 45.9% of shares of all “Consumer Finance” companies are owned by institutional investors. 44.0% of PPDAI Group shares are owned by company insiders. Comparatively, 22.1% of shares of all “Consumer Finance” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares PPDAI Group and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PPDAI Group	$1.94 billion	$363.56 million	2.78
PPDAI Group Competitors	$3.97 billion	$385.17 million	5.79

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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for PPDAI Group and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPDAI Group	1	1	0	0	1.50
PPDAI Group Competitors	890	3351	5288	274	2.50

PPDAI Group currently has a consensus target price of $4.10, indicating a potential upside of 39.22%. As a group, “Consumer Finance” companies have a potential upside of 21.14%. Given PPDAI Group’s higher possible upside, equities analysts plainly believe PPDAI Group is more favorable than its competitors.

Risk and Volatility

PPDAI Group has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, PPDAI Group’s competitors have a beta of 1.26, suggesting 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	9.83%	-15.77%	2.02%

Summary

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

PPDAI Group Company Profile

FinVolution Group operates in the online consumer finance industry. The company operates a fintech platform that is empowered by borrowers with financial institutions. It operates in China and internationally. The company was formerly known as PPDAI Group Inc. and changed its name to FinVolution Group in November 2019. FinVolution Group was founded in 2007 and is headquartered in Shanghai, the People’s Republic of China.