Comparing Better Home & Finance (NASDAQ:BETR) & FinVolution Group (NYSE:FINV)

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

Profitability

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

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

Insider & Institutional Ownership

31.1% of FinVolution Group shares are owned by institutional investors. Comparatively, 0.6% of Better Home & Finance shares are owned by institutional investors. 44.0% of FinVolution Group shares are owned by company insiders. Comparatively, 57.4% of Better Home & Finance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

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

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

FinVolution Group currently has a consensus target price of $5.86, suggesting a potential upside of 14.23%. Given FinVolution Group’s higher possible upside, analysts plainly believe FinVolution Group is more favorable than Better Home & Finance.

Valuation and Earnings

This table compares FinVolution Group and Better Home & Finance’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FinVolution Group	$12.29 billion	0.12	$328.60 million	$1.19	4.31
Better Home & Finance	$211.38 million	0.02	$8.74 million	0.07	8.35

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.

Volatility and Risk

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

Summary

FinVolution Group beats Better Home & Finance on 9 of the 13 factors compared between the two stocks.

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.

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.