Analyzing PPDAI Group (FINV) & Its Competitors

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 rivals? We will compare PPDAI Group to similar companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares PPDAI Group and its rivals’ 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%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PPDAI Group and its rivals, as provided 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 price target of $4.10, suggesting a potential upside of 39.22%. As a group, “Consumer Finance” companies have a potential upside of 21.14%. Given PPDAI Group’s higher probable upside, equities analysts plainly believe PPDAI Group is more favorable than its rivals.

Risk & Volatility

PPDAI Group has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, PPDAI Group’s rivals have a beta of 1.26, indicating that their average stock price is 26% more volatile than the S&P 500.

Earnings & Valuation

This table compares PPDAI Group and its rivals 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 rivals have higher revenue and earnings than PPDAI Group. PPDAI Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

31.1% of PPDAI Group shares are held by institutional investors. Comparatively, 45.9% of shares of all “Consumer Finance” companies are held by institutional investors. 44.0% of PPDAI Group shares are held by company insiders. Comparatively, 22.1% of shares of all “Consumer Finance” companies are held by company 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.

Summary

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

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.