PPDAI Group (NYSE:FINV – Get Free Report) and Upstart (NASDAQ:UPST – 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 analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
Analyst Ratings
This is a summary of current ratings and price targets for PPDAI Group and Upstart, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PPDAI Group | 0 | 1 | 0 | 0 | 2.00 |
| Upstart | 3 | 7 | 7 | 0 | 2.24 |
Upstart has a consensus target price of $45.20, indicating a potential upside of 53.81%. Given Upstart’s stronger consensus rating and higher possible upside, analysts plainly believe Upstart is more favorable than PPDAI Group.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PPDAI Group | $1.94 billion | 0.61 | $363.56 million | $1.19 | 4.07 |
| Upstart | $1.04 billion | 2.69 | $53.60 million | $0.38 | 77.33 |
PPDAI Group has higher revenue and earnings than Upstart. PPDAI Group is trading at a lower price-to-earnings ratio than Upstart, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
31.1% of PPDAI Group shares are owned by institutional investors. Comparatively, 63.0% of Upstart shares are owned by institutional investors. 44.0% of PPDAI Group shares are owned by insiders. Comparatively, 17.3% of Upstart shares are owned 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.
Risk and Volatility
PPDAI Group has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Upstart has a beta of 2.26, suggesting that its stock price is 126% more volatile than the S&P 500.
Profitability
This table compares PPDAI Group and Upstart’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PPDAI Group | 16.58% | 14.22% | 9.15% |
| Upstart | 4.34% | 5.63% | 1.49% |
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 Upstart
Upstart Holdings, Inc., together with its subsidiaries, operates a cloud-based artificial intelligence (AI) lending platform in the United States. Its platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar loans that connects consumer demand for loans to its to bank and credit unions. Upstart Holdings, Inc. was founded in 2012 and is headquartered in San Mateo, California.
Receive News & Ratings for PPDAI Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PPDAI Group and related companies with MarketBeat.com's FREE daily email newsletter.
