FinVolution Group (NYSE:FINV – Get Free Report) and Better Home & Finance (NASDAQ:BETR – Get Free Report) are both small-cap financial services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.
Analyst Ratings
This is a summary of recent ratings and recommmendations for FinVolution Group and Better Home & Finance, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
FinVolution Group | 0 | 1 | 3 | 0 | 2.75 |
Better Home & Finance | 0 | 0 | 0 | 0 | N/A |
FinVolution Group presently has a consensus price target of $5.86, indicating a potential upside of 14.23%. Given FinVolution Group’s higher possible upside, research analysts clearly believe FinVolution Group is more favorable than Better Home & Finance.
Insider & Institutional Ownership
Earnings and Valuation
This table compares FinVolution Group and Better Home & Finance’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
FinVolution Group | $1.61 billion | 0.90 | $328.60 million | $1.22 | 4.20 |
Better Home & Finance | N/A | N/A | $8.74 million | 0.07 | 14.57 |
FinVolution Group has higher revenue and earnings than Better Home & Finance. FinVolution Group is trading at a lower price-to-earnings ratio than Better Home & Finance, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
FinVolution Group has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Better Home & Finance has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.
Profitability
This table compares FinVolution Group and Better Home & Finance’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
FinVolution Group | 20.69% | 20.76% | 12.09% |
Better Home & Finance | N/A | 50.95% | 3.25% |
Summary
FinVolution Group beats Better Home & Finance on 9 of the 12 factors compared between the two stocks.
About FinVolution Group
FinVolution Group operates in the online consumer finance industry. The company operates a fintech platform that is empowered by proprietary technologies connects underserved 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 Better Home & Finance
Better Mortgage Corporation operates as a mortgage banks and brokers company. It was formerly known as Avex Funding Corporation and changed its name to Better Mortgage Corporation in January 2017. The company is based in New York, New York.
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