Inter & Co. Inc. (NASDAQ:INTR – Get Free Report) and PPDAI Group (NYSE:FINV – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.
Analyst Ratings
This is a summary of current recommendations and price targets for Inter & Co. Inc. and PPDAI Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inter & Co. Inc. | 0 | 3 | 3 | 0 | 2.50 |
| PPDAI Group | 0 | 1 | 0 | 0 | 2.00 |
Inter & Co. Inc. currently has a consensus target price of $9.28, indicating a potential upside of 63.67%. Given Inter & Co. Inc.’s stronger consensus rating and higher probable upside, research analysts clearly believe Inter & Co. Inc. is more favorable than PPDAI Group.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Inter & Co. Inc. | 12.24% | 14.34% | 1.53% |
| PPDAI Group | 16.58% | 14.22% | 9.15% |
Earnings & Valuation
This table compares Inter & Co. Inc. and PPDAI Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Inter & Co. Inc. | $1.93 billion | 1.30 | $235.05 million | $0.60 | 9.45 |
| PPDAI Group | $1.94 billion | 0.62 | $363.56 million | $1.19 | 4.16 |
PPDAI Group has higher revenue and earnings than Inter & Co. Inc.. PPDAI Group is trading at a lower price-to-earnings ratio than Inter & Co. Inc., indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Inter & Co. Inc. has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, PPDAI Group has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.
Institutional and Insider Ownership
22.9% of Inter & Co. Inc. shares are owned by institutional investors. Comparatively, 31.2% of PPDAI Group shares are owned by institutional investors. 44.0% of PPDAI Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
About Inter & Co. Inc.
Inter & Co., Inc. Is a holding company, which engages in the provision of financial products and services. It operates through the following segments: Banking, Securities, Insurance Brokerage, Marketplace, Asset Management, Service, and Other. The Banking segment offers checking accounts cards, deposits, loans and advances, and other services through mobile application. The Securities segment is involved in the acquisition, sale and custody of securities, the structuring and distribution of securities in the capital market, and the provision of administration services to investment funds. The Insurance Brokerage segment includes insurance products underwritten by insurance companies, such as warranties, life, property and automobile insurance, and pension products, as well as consortium products provided by a third party. The Marketplace segment operates a digital platform, which offers goods and services to its customers. The Asset Management segment is composed of the operations related to the management of fund portfolios and other assets. The Service segment consists of collection and management of personal information, development and licensing of customized computer programs, development and licensing of non-customized computer programs and technical support, maintenance, and other information technology services. The company was founded on January 26, 2021 and is headquartered in Belo Horizonte, Brazil.
About PPDAI Group
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.
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