Contrasting PPDAI Group (FINV) and Its Peers

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

Valuation & Earnings

This table compares PPDAI Group and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PPDAI Group	$1.94 billion	$363.56 million	2.57
PPDAI Group Competitors	$3.62 billion	$385.17 million	4.49

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for PPDAI Group and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPDAI Group	1	1	0	0	1.50
PPDAI Group Competitors	896	3366	5300	276	2.50

PPDAI Group presently has a consensus target price of $4.10, suggesting a potential upside of 50.46%. As a group, “Consumer Finance” companies have a potential upside of 21.16%. Given PPDAI Group’s higher possible upside, research analysts plainly believe PPDAI Group is more favorable than its peers.

Risk & Volatility

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

Insider and Institutional Ownership

31.1% of PPDAI Group shares are held by institutional investors. Comparatively, 45.7% of shares of all “Consumer Finance” companies are held by institutional investors. 44.0% of PPDAI Group shares are held by insiders. Comparatively, 22.0% of shares of all “Consumer Finance” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares PPDAI Group and its peers’ 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	10.42%	-15.79%	2.02%

Summary

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

PPDAI Group Company Profile

PPDAI Group, now known as FinVolution Group, operates an online consumer finance platform that connects individual borrowers with financial institutions and other funding partners. The company uses technology and data analytics to support borrower assessment, risk management and loan facilitation. Founded in China, the company has expanded beyond its home market into countries in Southeast Asia, including Indonesia and the Philippines. Its platform serves consumers seeking credit and partners seeking technology-enabled access to consumer lending opportunities.