Financial Contrast: PPDAI Group (NYSE:FINV) and Lion Group (NASDAQ:LGHL)

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

Earnings and Valuation

This table compares PPDAI Group and Lion Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PPDAI Group	$13.34 billion	0.09	$363.56 million	$1.19	4.02
Lion Group	$833,247.00	0.87	-$4.96 million	N/A	N/A

PPDAI Group has higher revenue and earnings than Lion Group.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for PPDAI Group and Lion Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPDAI Group	0	1	0	0	2.00
Lion Group	1	0	0	0	1.00

Volatility and Risk

PPDAI Group has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Lion Group has a beta of 2.82, suggesting that its stock price is 182% more volatile than the S&P 500.

Institutional & Insider Ownership

31.1% of PPDAI Group shares are held by institutional investors. Comparatively, 0.2% of Lion Group shares are held by institutional investors. 44.0% of PPDAI Group shares are held by company insiders. Comparatively, 8.7% of Lion Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PPDAI Group	16.58%	14.22%	9.15%
Lion Group	N/A	N/A	N/A

Summary

PPDAI Group beats Lion Group on 8 of the 10 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 Lion Group

Lion Group Holding Ltd., together with its subsidiaries, operates a trading platform for corporate clients, individual traders, and retail investors primarily in the People's Republic of China and Southeast Asia. Its trading platform offers a range of products and services comprising contracts for difference trading, over-the-counter stock options trading, futures and securities brokerage, and total return swap trading services through its Lion Brokers Pro app platform. The company's trading platform allows users to trade various futures products on futures exchanges worldwide, including the Chicago Mercantile Exchange, Singapore Exchange, the Hong Kong Futures Exchange, and Eurex Exchange; stocks listed on the New York Stock Exchange, Nasdaq and Hong Kong Stock Exchange; and the People's Republic of China stocks listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange that are eligible for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs. It markets its products mainly through search engines, social media, app stores, and third-party websites. Lion Group Holding Ltd. was founded in 2015 and is headquartered in Singapore.