Argo Blockchain (NASDAQ:ARBK) vs. PPDAI Group (NYSE:FINV) Head-To-Head Review

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PPDAI Group	$1.79 billion	1.04	$326.49 million	$1.48	4.95
Argo Blockchain	$47.02 million	1.25	-$55.10 million	($0.97)	-0.84

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

Volatility and Risk

PPDAI Group has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Argo Blockchain has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500.

Institutional & Insider Ownership

31.2% of PPDAI Group shares are held by institutional investors. Comparatively, 2.4% of Argo Blockchain shares are held by institutional investors. 44.0% of PPDAI Group shares are held by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PPDAI Group	20.28%	18.88%	12.21%
Argo Blockchain	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and price targets for PPDAI Group and Argo Blockchain, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPDAI Group	0	0	3	0	3.00
Argo Blockchain	2	1	0	0	1.33

PPDAI Group currently has a consensus target price of $11.55, indicating a potential upside of 57.57%. Given PPDAI Group’s stronger consensus rating and higher probable upside, research analysts clearly believe PPDAI Group is more favorable than Argo Blockchain.

Summary

PPDAI Group beats Argo Blockchain on 12 of the 14 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 Argo Blockchain

Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for complex cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. Argo Blockchain plc was incorporated in 2017 and is based in London, the United Kingdom.