Head to Head Contrast: PPDAI Group (PPDF) & Lendingtree (TREE)

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PPDAI Group (NYSE:PPDF) and Lendingtree (NASDAQ:TREE) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Earnings and Valuation

This table compares PPDAI Group and Lendingtree’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PPDAI Group $596.44 million 2.78 $166.44 million N/A N/A
Lendingtree $617.74 million 4.91 $15.57 million $3.02 78.34

PPDAI Group has higher earnings, but lower revenue than Lendingtree.

Analyst Recommendations

This is a summary of current ratings for PPDAI Group and Lendingtree, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PPDAI Group 0 2 2 0 2.50
Lendingtree 1 6 8 0 2.47

PPDAI Group currently has a consensus price target of $12.00, suggesting a potential upside of 117.79%. Lendingtree has a consensus price target of $335.27, suggesting a potential upside of 41.70%. Given PPDAI Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe PPDAI Group is more favorable than Lendingtree.

Profitability

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

Net Margins Return on Equity Return on Assets
PPDAI Group 25.95% 36.22% 12.34%
Lendingtree 12.73% 12.86% 6.08%

Insider & Institutional Ownership

6.1% of PPDAI Group shares are held by institutional investors. Comparatively, 83.9% of Lendingtree shares are held by institutional investors. 20.5% of Lendingtree shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

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

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.

About Lendingtree

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.

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