Analyzing BB Seguridade Participacoes (OTCMKTS:BBSEY) & PPDAI Group (NYSE:FINV)

BB Seguridade Participacoes (OTCMKTS:BBSEY) and PPDAI Group (NYSE:FINV) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BB Seguridade Participacoes	87.29%	78.13%	45.37%
PPDAI Group	19.98%	18.33%	11.77%

Analyst Recommendations

This is a summary of current recommendations and price targets for BB Seguridade Participacoes and PPDAI Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BB Seguridade Participacoes	0	2	0	0	2.00
PPDAI Group	0	1	2	0	2.67

PPDAI Group has a consensus target price of $11.55, indicating a potential upside of 114.29%. Given PPDAI Group’s stronger consensus rating and higher probable upside, analysts plainly believe PPDAI Group is more favorable than BB Seguridade Participacoes.

Insider & Institutional Ownership

0.0% of BB Seguridade Participacoes shares are owned by institutional investors. Comparatively, 31.2% 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

BB Seguridade Participacoes has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, PPDAI Group has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Earnings and Valuation

This table compares BB Seguridade Participacoes and PPDAI Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BB Seguridade Participacoes	$1.85 billion	7.32	$1.61 billion	$0.83	8.16
PPDAI Group	$1.79 billion	0.76	$326.49 million	$1.47	3.67

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

Summary

BB Seguridade Participacoes beats PPDAI Group on 8 of the 14 factors compared between the two stocks.

About BB Seguridade Participacoes

BB Seguridade Participações S.A., through its subsidiaries operates in the insurance, pension plans, and bonds, businesses in Brazil. The company operates through Security and Brokerage segments. The Security segment offers life, property, rural, special risks and financial, transport, hulls, and housing people insurance products. It also offers pension plans, dental, and capitalization plans. The Brokerage segment engages in the brokerage, management, and promotion of pension plans, capitalization, capitalization, and dental plans. BB Seguridade Participações S.A. was incorporated in 2012 and is headquartered in Brasilia, Brazil. BB Seguridade Participações S.A. operates as a subsidiary of Banco do Brasil S.A.

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.