Head-To-Head Analysis: PPDAI Group (NYSE:FINV) versus CTT Correios de Portugal (OTCMKTS:CTTPY)

PPDAI Group (NYSE:FINV) and CTT Correios de Portugal (OTCMKTS:CTTPY) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Profitability

This table compares PPDAI Group and CTT Correios de Portugal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PPDAI Group	20.28%	18.88%	12.21%
CTT Correios de Portugal	4.13%	16.93%	0.90%

Volatility & Risk

PPDAI Group has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, CTT Correios de Portugal has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500.

Insider & Institutional Ownership

31.2% of PPDAI Group shares are owned by institutional investors. 44.0% of PPDAI Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares PPDAI Group and CTT Correios de Portugal”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PPDAI Group	$1.79 billion	0.87	$326.49 million	$1.48	4.14
CTT Correios de Portugal	$1.20 billion	0.90	$49.28 million	$0.76	21.14

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

Analyst Recommendations

This is a breakdown of recent recommendations for PPDAI Group and CTT Correios de Portugal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPDAI Group	0	1	2	0	2.67
CTT Correios de Portugal	0	0	0	0	0.00

PPDAI Group currently has a consensus price target of $11.55, suggesting a potential upside of 88.51%. Given PPDAI Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe PPDAI Group is more favorable than CTT Correios de Portugal.

Summary

PPDAI Group beats CTT Correios de Portugal on 12 of the 14 factors compared between the two stocks.

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.

About CTT Correios de Portugal

CTT – Correios De Portugal, S.A., together with its subsidiaries, provides postal and financial services worldwide. It operates through Mail, Express & Parcels, Financial Services & Retail, and Bank segments. The company offers courier and urgent mail transport services; postal financial services; and banking services. It also engages in the business of payments related to collection of invoices and fines. In addition, the company enables the payment of various services and utilities through a network of approximately 5,000 agents covering business outlets as stationery stores, tobacco shops, kiosks, and supermarkets. It operates a retail network of 566 post offices; 1,808 postal agencies; 223 postal delivery offices; 4,576 postal delivery routes; and a fleet of 3,925 vehicles. The company was formerly known as Correio Publico. CTT – Correios De Portugal, S.A. was founded in 1520 and is headquartered in Lisbon, Portugal.