Contrasting PPDAI Group (NYSE:FINV) and Powell Max (NASDAQ:PMAX)

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

Analyst Recommendations

This is a summary of current ratings and price targets for Powell Max and PPDAI Group, as provided by MarketBeat.

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

Insider and Institutional Ownership

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

Risk & Volatility

Powell Max has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500. Comparatively, PPDAI Group has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Powell Max	$47.65 million	0.06	-$3.02 million	N/A	N/A
PPDAI Group	$13.34 billion	0.09	$363.56 million	$1.19	4.00

PPDAI Group has higher revenue and earnings than Powell Max.

Profitability

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

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

Summary

PPDAI Group beats Powell Max on 9 of the 10 factors compared between the two stocks.

About Powell Max

Powell Max Limited is a financial communications services provider. Powell Max Limited is based in JERSEY CITY, N.J.

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.