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

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

Insider & Institutional Ownership

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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FinVolution Group $1.49 billion 0.68 $393.71 million $1.32 2.74
Aurora Acquisition N/A N/A -$5.04 million ($0.80) -12.33

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.

Profitability

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

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

Analyst Recommendations

This is a summary of current ratings and price targets for FinVolution Group and Aurora Acquisition, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FinVolution Group 0 2 1 0 2.33
Aurora Acquisition 0 0 0 0 N/A

FinVolution Group currently has a consensus price target of $6.02, indicating a potential upside of 66.39%. Given FinVolution Group’s higher possible upside, analysts clearly believe FinVolution Group is more favorable than Aurora Acquisition.

Summary

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

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.

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.

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