PPDAI Group (NYSE:PPDF) and Lendingtree (NASDAQ:TREE) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.
This table compares PPDAI Group and Lendingtree’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for PPDAI Group and Lendingtree, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PPDAI Group currently has a consensus price target of $12.00, indicating a potential upside of 116.22%. Lendingtree has a consensus price target of $335.27, indicating a potential upside of 28.78%. Given PPDAI Group’s stronger consensus rating and higher probable upside, analysts clearly believe PPDAI Group is more favorable than Lendingtree.
Institutional & Insider Ownership
6.7% of PPDAI Group shares are held by institutional investors. Comparatively, 86.3% of Lendingtree shares are held by institutional investors. 20.5% of Lendingtree shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares PPDAI Group and Lendingtree’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PPDAI Group||$596.44 million||2.80||$166.44 million||N/A||N/A|
|Lendingtree||$617.74 million||5.41||$15.57 million||$3.02||86.21|
PPDAI Group has higher earnings, but lower revenue than Lendingtree.
PPDAI Group beats Lendingtree on 6 of the 11 factors compared between the two stocks.
PPDAI Group Company Profile
PPDAI Group Inc., an investment holding company, operates an online consumer finance marketplace through its platform in the People's Republic of China. It provides services to match borrowers with investors and facilitate loan transactions on its marketplace through the lifecycle of loans. The company offers standard and other loan products; and investment services to investors. As of December 31, 2017, it had approximately 65 million cumulative registered users. The company was founded in 2007 and is headquartered in Shanghai, the People's Republic of China.
Lendingtree Company Profile
LendingTree, Inc. engages in the operation of online loan marketplace for consumers seeking loans and other credit-based offerings. It provides mortgage loans, home equity, reverse mortgage, auto loans, credit cards, personal loans, student loans, and small business loans. The company was founded Douglas Lebda in April 2008 and is headquartered in Charlotte, NC.
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