Head to Head Comparison: Better Home & Finance (NASDAQ:BETR) vs. FinVolution Group (NYSE:FINV)

Better Home & Finance (NASDAQ:BETR) and FinVolution Group (NYSE:FINV) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Earnings & Valuation

This table compares Better Home & Finance and FinVolution Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Better Home & Finance	N/A	N/A	$8.74 million	0.07	10.98
FinVolution Group	$1.61 billion	0.90	$328.60 million	$1.19	4.32

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Better Home & Finance and FinVolution Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Better Home & Finance	0	0	0	0	N/A
FinVolution Group	0	1	3	0	2.75

FinVolution Group has a consensus target price of $5.86, suggesting a potential upside of 14.12%. Given FinVolution Group’s higher probable upside, analysts plainly believe FinVolution Group is more favorable than Better Home & Finance.

Volatility and Risk

Better Home & Finance has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, FinVolution Group has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Insider and Institutional Ownership

0.6% of Better Home & Finance shares are owned by institutional investors. Comparatively, 31.2% of FinVolution Group shares are owned by institutional investors. 29.5% of Better Home & Finance shares are owned by insiders. Comparatively, 44.0% of FinVolution Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Better Home & Finance and FinVolution Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Better Home & Finance	N/A	50.95%	3.25%
FinVolution Group	19.79%	19.92%	11.71%

Summary

FinVolution Group beats Better Home & Finance on 9 of the 12 factors compared between the two stocks.

About Better Home & Finance

Better Mortgage Corporation operates as a mortgage banks and brokers company. It was formerly known as Avex Funding Corporation and changed its name to Better Mortgage Corporation in January 2017. The company is based in New York, New York.

About FinVolution Group

FinVolution Group operates in the online consumer finance industry. The company operates a fintech platform that is empowered by proprietary technologies connects underserved 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.