Comparing Aurora Acquisition (NASDAQ:AURC) & FinVolution Group (NYSE:FINV)

Aurora Acquisition (NASDAQ:AURCGet Rating) and FinVolution Group (NYSE:FINVGet Rating) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Profitability

This table compares Aurora Acquisition and FinVolution Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aurora Acquisition N/A -34.42% -1.80%
FinVolution Group 26.49% 26.57% 16.01%

Institutional and Insider Ownership

60.2% of Aurora Acquisition shares are owned by institutional investors. Comparatively, 81.2% of FinVolution Group shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Aurora Acquisition and FinVolution Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aurora Acquisition 0 0 0 0 N/A
FinVolution Group 0 2 2 0 2.50

FinVolution Group has a consensus target price of $6.82, indicating a potential upside of 83.27%. Given FinVolution Group’s higher probable upside, analysts plainly believe FinVolution Group is more favorable than Aurora Acquisition.

Valuation and Earnings

This table compares Aurora Acquisition and FinVolution Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aurora Acquisition N/A N/A -$5.04 million ($0.80) -12.34
FinVolution Group $1.49 billion 0.70 $393.71 million $1.32 2.82

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

Summary

FinVolution Group beats Aurora Acquisition on 10 of the 10 factors compared between the two stocks.

Aurora Acquisition Company Profile (Get Rating)

Aurora Acquisition Corp. does not have significant operations. The company intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses in the technology and media companies in Europe, the Middle East, and Africa. Aurora Acquisition Corp. was incorporated in 2020 and is based in London, the United Kingdom.

FinVolution Group Company Profile (Get Rating)

FinVolution Group, an investment holding company, operates an online consumer finance marketplace in the People's Republic of China. It operates a fintech platform that connects underserved individual borrowers with financial institutions. The company's platform provides standard and other loan products. As of September 30, 2021, it had approximately 135.6 million cumulative registered users. 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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