Lion Group (NASDAQ:LGHL – Get Free Report) and PPDAI Group (NYSE:FINV – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.
Risk & Volatility
Lion Group has a beta of 2.82, suggesting that its share price is 182% more 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.
Institutional & Insider Ownership
0.2% of Lion Group shares are held by institutional investors. Comparatively, 31.1% of PPDAI Group shares are held by institutional investors. 8.7% of Lion Group 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lion Group | 1 | 0 | 0 | 0 | 1.00 |
| PPDAI Group | 0 | 1 | 0 | 0 | 2.00 |
Earnings & Valuation
This table compares Lion Group and PPDAI Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lion Group | $9.39 million | 0.05 | -$4.96 million | N/A | N/A |
| PPDAI Group | $1.94 billion | 0.60 | $363.56 million | $1.19 | 4.00 |
PPDAI Group has higher revenue and earnings than Lion Group.
Profitability
This table compares Lion Group and PPDAI Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lion Group | N/A | N/A | N/A |
| PPDAI Group | 16.58% | 14.22% | 9.15% |
Summary
PPDAI Group beats Lion Group on 9 of the 10 factors compared between the two stocks.
About Lion Group
Lion Group Holding Ltd., together with its subsidiaries, operates a trading platform for corporate clients, individual traders, and retail investors primarily in the People's Republic of China and Southeast Asia. Its trading platform offers a range of products and services comprising contracts for difference trading, over-the-counter stock options trading, futures and securities brokerage, and total return swap trading services through its Lion Brokers Pro app platform. The company's trading platform allows users to trade various futures products on futures exchanges worldwide, including the Chicago Mercantile Exchange, Singapore Exchange, the Hong Kong Futures Exchange, and Eurex Exchange; stocks listed on the New York Stock Exchange, Nasdaq and Hong Kong Stock Exchange; and the People's Republic of China stocks listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange that are eligible for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs. It markets its products mainly through search engines, social media, app stores, and third-party websites. Lion Group Holding Ltd. was founded in 2015 and is headquartered in Singapore.
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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