Encore Capital Group (NASDAQ:ECPG – Get Free Report) and PPDAI Group (NYSE:FINV – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Valuation and Earnings
This table compares Encore Capital 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 | |
| Encore Capital Group | $1.77 billion | 1.17 | $256.83 million | $13.21 | 7.41 |
| PPDAI Group | $1.94 billion | 0.43 | $363.56 million | $1.06 | 3.20 |
Analyst Ratings
This is a breakdown of current recommendations for Encore Capital Group and PPDAI Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Encore Capital Group | 0 | 0 | 5 | 1 | 3.17 |
| PPDAI Group | 1 | 1 | 0 | 0 | 1.50 |
Encore Capital Group currently has a consensus target price of $89.75, indicating a potential downside of 8.36%. PPDAI Group has a consensus target price of $4.10, indicating a potential upside of 20.77%. Given PPDAI Group’s higher probable upside, analysts plainly believe PPDAI Group is more favorable than Encore Capital Group.
Insider and Institutional Ownership
31.1% of PPDAI Group shares are held by institutional investors. 3.0% of Encore Capital Group shares are held by insiders. Comparatively, 44.0% of PPDAI Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Encore Capital Group has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, PPDAI Group has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.
Profitability
This table compares Encore Capital Group and PPDAI Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Encore Capital Group | 15.86% | 29.83% | 5.58% |
| PPDAI Group | 14.49% | 12.31% | 7.95% |
Summary
Encore Capital Group beats PPDAI Group on 9 of the 15 factors compared between the two stocks.
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.
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.
Receive News & Ratings for Encore Capital Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Encore Capital Group and related companies with MarketBeat.com's FREE daily email newsletter.
