Financial Comparison: PPDAI Group (NYSE:FINV) vs. Atlantic International (NASDAQ:ATLN)

Atlantic International (NASDAQ:ATLN) and PPDAI Group (NYSE:FINV) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

31.1% of PPDAI Group shares are owned by institutional investors. 13.6% of Atlantic International 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 stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Atlantic International and PPDAI Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlantic International	1	1	0	1	2.33
PPDAI Group	0	1	0	0	2.00

Profitability

This table compares Atlantic International and PPDAI Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlantic International	-13.63%	N/A	-24.23%
PPDAI Group	16.58%	14.22%	9.15%

Earnings & Valuation

This table compares Atlantic International and PPDAI Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlantic International	$582.96 million	0.12	-$59.43 million	($1.33)	-0.67
PPDAI Group	$1.94 billion	0.61	$363.56 million	$1.19	4.08

PPDAI Group has higher revenue and earnings than Atlantic International. Atlantic International is trading at a lower price-to-earnings ratio than PPDAI Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Atlantic International has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, PPDAI Group has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Summary

PPDAI Group beats Atlantic International on 10 of the 13 factors compared between the two stocks.

About Atlantic International

Atlantic International Corp. engages in the design, development, and manufacture of genetic analysis technologies. Its services include RNA sequencing and DNA sequencing. The company was founded by William C. St. Laurent and Daniel R. Jones in 2013 and is headquartered in Billercia, MA.

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.