PPDAI Group (NYSE:FINV – Get Free Report) and Encore Capital Group (NASDAQ:ECPG – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for PPDAI Group and Encore Capital Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PPDAI Group | 1 | 1 | 0 | 0 | 1.50 |
| Encore Capital Group | 0 | 0 | 5 | 1 | 3.17 |
PPDAI Group currently has a consensus price target of $4.10, indicating a potential upside of 19.99%. Encore Capital Group has a consensus price target of $89.75, indicating a potential downside of 10.52%. Given PPDAI Group’s higher possible upside, analysts plainly believe PPDAI Group is more favorable than Encore Capital Group.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PPDAI Group | $13.16 billion | 0.06 | $363.56 million | $1.06 | 3.22 |
| Encore Capital Group | $1.77 billion | 1.20 | $256.83 million | $13.21 | 7.59 |
PPDAI Group has higher revenue and earnings than Encore Capital Group. PPDAI Group is trading at a lower price-to-earnings ratio than Encore Capital Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PPDAI Group and Encore Capital Group’s 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% |
| Encore Capital Group | 15.86% | 29.83% | 5.58% |
Volatility and Risk
PPDAI Group has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, Encore Capital Group has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
Insider and Institutional Ownership
31.1% of PPDAI Group shares are owned by institutional investors. 44.0% of PPDAI Group shares are owned by insiders. Comparatively, 3.0% of Encore Capital Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Encore Capital Group beats PPDAI Group on 9 of the 15 factors compared between the two stocks.
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.
About Encore Capital Group
Encore Capital Group, Inc., a specialty finance company, provides debt recovery solutions and other related services for consumers across financial assets worldwide. The company purchases portfolios of defaulted consumer receivables at deep discounts to face value, as well as manages them by working with individuals as they repay their obligations and works toward financial recovery. It is also involved in the provision of early stage collection, business process outsourcing, and contingent collection services. In addition, the company engages in debt servicing and other portfolio management services to credit originator for non-performing loans. Further, it offers credit management services. Encore Capital Group, Inc. was incorporated in 1999 and is headquartered in San Diego, California.
Receive News & Ratings for PPDAI Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PPDAI Group and related companies with MarketBeat.com's FREE daily email newsletter.
