Critical Survey: Powell Max (NASDAQ:PMAX) vs. PPDAI Group (NYSE:FINV)

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for PPDAI Group and Powell Max, as reported by MarketBeat.

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PPDAI Group	$1.94 billion	0.60	$363.56 million	$1.19	4.02
Powell Max	$6.12 million	0.51	-$3.02 million	N/A	N/A

PPDAI Group has higher revenue and earnings than Powell Max.

Profitability

This table compares PPDAI Group and Powell Max’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%
Powell Max	N/A	N/A	N/A

Volatility & Risk

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

Institutional & Insider 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

PPDAI Group beats Powell Max on 9 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 Powell Max

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