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

FinVolution Group (NYSE:FINV – Get Rating) and Aurora Acquisition (NASDAQ:AURC – Get 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 earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

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 for FinVolution Group and Aurora Acquisition, as reported by MarketBeat.com.

	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 presently has a consensus target price of $6.02, suggesting a potential upside of 63.68%. Given FinVolution Group’s higher probable upside, equities research analysts clearly believe FinVolution Group is more favorable than Aurora Acquisition.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FinVolution Group	$1.49 billion	0.70	$393.71 million	$1.32	2.79
Aurora Acquisition	N/A	N/A	-$5.04 million	($0.80)	-12.31

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.

Insider and 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, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

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

About FinVolution Group (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 December 31, 2021, it had approximately 140.3 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.

About Aurora Acquisition (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.