Head-To-Head Comparison: FlexShopper (NASDAQ:FPAY) & PPDAI Group (NYSE:FINV)

FlexShopper (NASDAQ:FPAY) and PPDAI Group (NYSE:FINV) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Earnings and Valuation

This table compares FlexShopper and PPDAI Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FlexShopper	$139.80 million	0.10	-$180,000.00	($0.23)	-2.91
PPDAI Group	$13.81 billion	0.17	$326.49 million	$1.48	6.31

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

Analyst Recommendations

This is a summary of current recommendations for FlexShopper and PPDAI Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FlexShopper	0	0	2	0	3.00
PPDAI Group	0	0	2	0	3.00

FlexShopper currently has a consensus price target of $3.25, indicating a potential upside of 385.07%. PPDAI Group has a consensus price target of $11.55, indicating a potential upside of 23.66%. Given FlexShopper’s higher possible upside, equities analysts plainly believe FlexShopper is more favorable than PPDAI Group.

Insider and Institutional Ownership

19.4% of FlexShopper shares are held by institutional investors. Comparatively, 31.1% of PPDAI Group shares are held by institutional investors. 30.2% of FlexShopper shares are held by company insiders. Comparatively, 44.0% of PPDAI Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

FlexShopper has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, PPDAI Group has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.

Profitability

This table compares FlexShopper and PPDAI Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FlexShopper	-0.13%	6.45%	0.22%
PPDAI Group	20.28%	18.88%	12.21%

Summary

PPDAI Group beats FlexShopper on 10 of the 12 factors compared between the two stocks.

About FlexShopper

FlexShopper, Inc., a financial technology company, operates an e-commerce marketplace to shop electronics, home furnishings, and other durable goods on a lease-to-own (LTO) basis. The company offers consumer electronics; home appliances; computers, such as tablets and wearables; smartphones; tires; and jewelry and furniture, including accessories. It also provides payment options to consumers. The company offers its products under the LG, Samsung, Sony, TCL, Frigidaire, General Electric, Whirlpool, Apple, Asus, Dell, Hewlett Packard, Toshiba, Resident, Sealy, and Ashley brands. The company was formerly known as Anchor Funding Services, Inc. and changed its name to FlexShopper, Inc. in October 2013. FlexShopper, Inc. was founded in 2003 and is headquartered in Boca Raton, Florida.

About PPDAI Group

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