Inter & Co. Inc. (NASDAQ:INTR – Get Free Report) and PPDAI Group (NYSE:FINV – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Institutional & Insider Ownership
22.9% of Inter & Co. Inc. shares are held by institutional investors. Comparatively, 31.1% of PPDAI Group shares are held by institutional investors. 44.0% of PPDAI Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for Inter & Co. Inc. and PPDAI Group, as provided by MarketBeat.
| 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 |
Profitability
This table compares Inter & Co. Inc. and PPDAI Group’s net margins, return on equity and return on assets.
| 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% |
Volatility & Risk
Inter & Co. Inc. has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, PPDAI Group has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.
Valuation and Earnings
This table compares Inter & Co. Inc. and PPDAI Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Inter & Co. Inc. | $1.93 billion | 1.41 | $235.05 million | $0.60 | 10.28 |
| PPDAI Group | $13.34 billion | 0.10 | $363.56 million | $1.19 | 4.47 |
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.
Dividends
Inter & Co. Inc. pays an annual dividend of $0.11 per share and has a dividend yield of 1.8%. PPDAI Group pays an annual dividend of $0.21 per share and has a dividend yield of 3.9%. Inter & Co. Inc. pays out 18.3% of its earnings in the form of a dividend. PPDAI Group pays out 17.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PPDAI Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
PPDAI Group beats Inter & Co. Inc. on 9 of the 16 factors compared between the two stocks.
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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