Palmer Square Capital BDC (NYSE:PSBD – Get Free Report) and PRA Group (NASDAQ:PRAA – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.
Insider and Institutional Ownership
6.5% of Palmer Square Capital BDC shares are held by institutional investors. Comparatively, 97.2% of PRA Group shares are held by institutional investors. 2.0% of PRA Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Palmer Square Capital BDC and PRA Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Palmer Square Capital BDC | 0 | 3 | 4 | 0 | 2.57 |
| PRA Group | 0 | 0 | 1 | 0 | 3.00 |
Valuation & Earnings
This table compares Palmer Square Capital BDC and PRA Group’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Palmer Square Capital BDC | $112.22 million | 4.77 | $107.84 million | N/A | N/A |
| PRA Group | $802.55 million | 1.18 | -$83.48 million | ($2.13) | -11.32 |
Palmer Square Capital BDC has higher earnings, but lower revenue than PRA Group.
Profitability
This table compares Palmer Square Capital BDC and PRA Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Palmer Square Capital BDC | 96.09% | 23.31% | 9.23% |
| PRA Group | -10.40% | -6.82% | -1.88% |
Summary
Palmer Square Capital BDC beats PRA Group on 6 of the 11 factors compared between the two stocks.
About Palmer Square Capital BDC
Palmer Square Capital BDC Inc. is an externally managed, non-diversified closed-end management investment company which primarily lends to and invests in corporate debt securities, including small to large private U.S. companies and has elected to be regulated as a business development company. Palmer Square Capital BDC Inc. is based in MISSION WOODS, Kan.
About PRA Group
PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans worldwide. It is involved in the purchase of accounts that are primarily the unpaid obligations of individuals owed to credit originators, which include banks and other types of consumer, retail, and auto finance companies. The company also acquires nonperforming loans, including Visa and MasterCard credit card accounts, private label and other credit card accounts, personal loans, automobile loans, and small business loans from banks, credit unions, consumer finance companies, retailers, utilities, automobile finance companies, and other credit originators. In addition, it provides fee-based services on class action claims recoveries. The company was formerly known as Portfolio Recovery Associates, Inc. and changed its name to PRA Group, Inc. in October 2014. PRA Group, Inc. was founded in 1996 and is headquartered in Norfolk, Virginia.
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