PPDAI Group (NYSE:FINV) & World Acceptance (NASDAQ:WRLD) Head-To-Head Review

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

Analyst Ratings

This is a breakdown of recent recommendations for World Acceptance and PPDAI Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
World Acceptance	0	2	0	0	2.00
PPDAI Group	0	1	0	0	2.00

Risk & Volatility

World Acceptance has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, PPDAI Group has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Insider and Institutional Ownership

83.6% of World Acceptance shares are held by institutional investors. Comparatively, 31.1% of PPDAI Group shares are held by institutional investors. 38.0% of World Acceptance shares are held by company insiders. Comparatively, 44.0% of PPDAI Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
World Acceptance	$585.74 million	1.55	$34.59 million	$8.46	23.02
PPDAI Group	$13.34 billion	0.08	$363.56 million	$1.19	3.68

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

Profitability

This table compares World Acceptance and PPDAI Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
World Acceptance	6.71%	12.13%	4.00%
PPDAI Group	16.58%	14.22%	9.15%

Summary

PPDAI Group beats World Acceptance on 6 of the 11 factors compared between the two stocks.

About World Acceptance

World Acceptance Corporation engages in consumer finance business in the United States. The company provides short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It offers income tax return preparation and filing services; and automobile club memberships. It serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.

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.