Reviewing PPDAI Group (NYSE:FINV) and Atlantic International (NASDAQ:ATLN)

Atlantic International (NASDAQ:ATLN) and PPDAI Group (NYSE:FINV) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.

Earnings and Valuation

This table compares Atlantic International 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
Atlantic International	$582.96 million	0.12	-$59.43 million	($1.33)	-0.67
PPDAI Group	$1.94 billion	0.61	$363.56 million	$1.19	4.08

PPDAI Group has higher revenue and earnings than Atlantic International. Atlantic International is trading at a lower price-to-earnings ratio than PPDAI Group, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atlantic International	-13.63%	N/A	-24.23%
PPDAI Group	16.58%	14.22%	9.15%

Risk and Volatility

Atlantic International has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, PPDAI Group has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Atlantic International and PPDAI Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlantic International	1	1	0	1	2.33
PPDAI Group	0	1	0	0	2.00

Insider and Institutional Ownership

31.1% of PPDAI Group shares are held by institutional investors. 13.6% of Atlantic International shares are held by company insiders. Comparatively, 44.0% of PPDAI Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

PPDAI Group beats Atlantic International on 10 of the 13 factors compared between the two stocks.

About Atlantic International

Atlantic International Corp. engages in the design, development, and manufacture of genetic analysis technologies. Its services include RNA sequencing and DNA sequencing. The company was founded by William C. St. Laurent and Daniel R. Jones in 2013 and is headquartered in Billercia, MA.

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.