PPDAI Group (NYSE:FINV – Get Free Report) and LendingClub (NYSE:LC – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.
Insider & Institutional Ownership
31.1% of PPDAI Group shares are held by institutional investors. Comparatively, 74.1% of LendingClub shares are held by institutional investors. 44.0% of PPDAI Group shares are held by insiders. Comparatively, 3.2% of LendingClub shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for PPDAI Group and LendingClub, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PPDAI Group | 0 | 2 | 0 | 0 | 2.00 |
| LendingClub | 0 | 2 | 6 | 1 | 2.89 |
Profitability
This table compares PPDAI Group and LendingClub’s 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% |
| LendingClub | 16.99% | 11.92% | 1.55% |
Valuation & Earnings
This table compares PPDAI Group and LendingClub”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PPDAI Group | $1.94 billion | 0.39 | $363.56 million | $1.06 | 2.90 |
| LendingClub | $1.03 billion | 2.14 | $135.68 million | $1.49 | 12.89 |
PPDAI Group has higher revenue and earnings than LendingClub. PPDAI Group is trading at a lower price-to-earnings ratio than LendingClub, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
PPDAI Group has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, LendingClub has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500.
Summary
LendingClub beats PPDAI Group on 9 of the 15 factors compared between the two stocks.
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.
About LendingClub
LendingClub Corporation, operates as a bank holding company, that provides range of financial products and services in the United States. It offers deposit products, including savings accounts, checking accounts, and certificates of deposit. The company also provides loan products, such as consumer loans comprising unsecured personal loans, secured auto refinance loans, and patient and education finance loans; and commercial loans, including small business loans. In addition, it operates an online lending marketplace platform. The company was incorporated in 2006 and is headquartered in San Francisco, California.
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