Reviewing Aiful (OTCMKTS:AIFLY) and PPDAI Group (NYSE:FINV)

Aiful (OTCMKTS:AIFLY) and PPDAI Group (NYSE:FINV) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Earnings & Valuation

This table compares Aiful and PPDAI Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aiful	N/A	N/A	N/A	$19.42	0.07
PPDAI Group	$1.94 billion	0.62	$363.56 million	$1.19	4.16

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

Insider and Institutional Ownership

31.1% of PPDAI Group shares are held by institutional investors. 44.0% of PPDAI Group shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aiful	N/A	N/A	N/A
PPDAI Group	16.58%	14.22%	9.15%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Aiful and PPDAI Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aiful	0	0	0	0	0.00
PPDAI Group	0	1	0	0	2.00

Summary

PPDAI Group beats Aiful on 8 of the 9 factors compared between the two stocks.

About Aiful

Aiful Corporation engages in the consumer finance and credit guarantee business in Japan. The company offers unsecured and small business loans; and credit card, prepaid card, credit guarantee, debt collection, venture capital, receiving agent, corporate turnaround and restructuring, warehouse, document management, and leasing services, as well as used car and medical loans. It also provides postpay settlement, factoring, and installment credit sales services. The company was formerly known as Marutaka, Inc. and changed its name to Aiful Corporation in May 1982. Aiful Corporation was founded in 1967 and is headquartered in Kyoto, Japan.

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.