Critical Analysis: PPDAI Group (NYSE:FINV) & Lion Group (NASDAQ:LGHL)

Lion Group (NASDAQ:LGHLGet Free Report) and PPDAI Group (NYSE:FINVGet Free Report) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Lion Group and PPDAI Group, as provided by MarketBeat.

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 and Valuation

This table compares Lion Group and PPDAI Group”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lion Group $833,247.00 1.09 -$4.96 million N/A N/A
PPDAI Group $13.34 billion 0.09 $363.56 million $1.19 4.00

PPDAI Group has higher revenue and earnings than Lion Group.

Insider & Institutional Ownership

0.2% of Lion Group shares are owned by institutional investors. Comparatively, 31.1% of PPDAI Group shares are owned by institutional investors. 8.7% of Lion Group shares are owned by insiders. Comparatively, 44.0% of PPDAI Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Lion Group has a beta of 2.82, indicating that its share price is 182% more volatile than the S&P 500. Comparatively, PPDAI Group has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

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 8 of the 10 factors compared between the two stocks.

About Lion Group

(Get Free Report)

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

(Get Free Report)

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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