Head-To-Head Review: PPDAI Group (NYSE:FINV) vs. Atlantic International (NASDAQ:ATLN)

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

Profitability

This table compares PPDAI Group and Atlantic International’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%
Atlantic International	-13.63%	N/A	-24.23%

Risk & Volatility

PPDAI Group has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Atlantic International has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for PPDAI Group and Atlantic International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPDAI Group	0	1	0	0	2.00
Atlantic International	1	1	0	1	2.33

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PPDAI Group	$13.34 billion	0.09	$363.56 million	$1.19	4.10
Atlantic International	$582.96 million	0.12	-$59.43 million	($1.33)	-0.67

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

Insider and Institutional Ownership

31.1% of PPDAI Group shares are owned by institutional investors. 44.0% of PPDAI Group shares are owned by insiders. Comparatively, 13.6% of Atlantic International shares are owned 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.

Summary

PPDAI Group beats Atlantic International on 9 of the 13 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 Atlantic International

Atlantic International Corp. engages in the design, development, and manufacture of genetic analysis technologies. Its services include RNA sequencing and DNA sequencing. The company was founded by William C. St. Laurent and Daniel R. Jones in 2013 and is headquartered in Billercia, MA.