Lendingtree (NASDAQ:TREE) and PPDAI Group (NYSE:PPDF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.
Institutional and Insider Ownership
84.7% of Lendingtree shares are held by institutional investors. Comparatively, 5.9% of PPDAI Group shares are held by institutional investors. 20.5% of Lendingtree shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Lendingtree and PPDAI Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lendingtree||$617.74 million||5.09||$15.57 million||$3.02||81.18|
|PPDAI Group||$596.44 million||2.84||$166.44 million||N/A||N/A|
PPDAI Group has lower revenue, but higher earnings than Lendingtree.
This is a breakdown of recent ratings and recommmendations for Lendingtree and PPDAI Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lendingtree presently has a consensus price target of $335.27, suggesting a potential upside of 36.76%. PPDAI Group has a consensus price target of $12.00, suggesting a potential upside of 112.77%. Given PPDAI Group’s higher possible upside, analysts plainly believe PPDAI Group is more favorable than Lendingtree.
This table compares Lendingtree and PPDAI Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Lendingtree beats PPDAI Group on 6 of the 11 factors compared between the two stocks.
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.
About PPDAI Group
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.
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