PPDAI Group (NYSE:PPDF) and Lendingtree (NASDAQ:TREE) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Institutional & Insider Ownership

5.9% of PPDAI Group shares are owned by institutional investors. Comparatively, 84.7% of Lendingtree shares are owned by institutional investors. 20.5% of Lendingtree shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares PPDAI Group and Lendingtree’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PPDAI Group $596.44 million 2.84 $166.44 million N/A N/A
Lendingtree $617.74 million 5.09 $15.57 million $3.02 81.18

PPDAI Group has higher earnings, but lower revenue than Lendingtree.

Profitability

This table compares PPDAI Group and Lendingtree’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PPDAI Group 25.95% 36.22% 12.34%
Lendingtree 12.73% 12.86% 6.08%

Analyst Ratings

This is a summary of current ratings and recommmendations for PPDAI Group and Lendingtree, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PPDAI Group 0 2 2 0 2.50
Lendingtree 1 5 9 0 2.53

PPDAI Group presently has a consensus target price of $12.00, suggesting a potential upside of 112.77%. Lendingtree has a consensus target price of $335.27, suggesting a potential upside of 36.76%. Given PPDAI Group’s higher probable upside, equities research analysts plainly believe PPDAI Group is more favorable than Lendingtree.

Summary

Lendingtree beats PPDAI Group on 6 of the 11 factors compared between the two stocks.

PPDAI Group Company Profile

PPDAI Group Inc., an investment holding company, operates an online consumer finance marketplace through its platform in the People's Republic of China. It provides services to match borrowers with investors and facilitate loan transactions on its marketplace through the lifecycle of loans. The company offers standard and other loan products; and investment services to investors. As of December 31, 2017, it had approximately 65 million cumulative registered users. The company was founded in 2007 and is headquartered in Shanghai, the People's Republic of China.

Lendingtree Company Profile

LendingTree, Inc. engages in the operation of online loan marketplace for consumers seeking loans and other credit-based offerings. It provides mortgage loans, home equity, reverse mortgage, auto loans, credit cards, personal loans, student loans, and small business loans. The company was founded Douglas Lebda in April 2008 and is headquartered in Charlotte, NC.

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