PRA Group (PRAA) versus The Competition Head to Head Analysis

PRA Group (NASDAQ:PRAA) is one of 120 public companies in the “Consumer Finance” industry, but how does it contrast to its competitors? We will compare PRA Group to similar businesses based on the strength of its dividends, analyst recommendations, risk, profitability, earnings, institutional ownership and valuation.

Volatility and Risk

PRA Group has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, PRA Group’s competitors have a beta of 1.26, suggesting that their average share price is 26% more volatile than the S&P 500.

Institutional & Insider Ownership

97.2% of PRA Group shares are owned by institutional investors. Comparatively, 45.7% of shares of all “Consumer Finance” companies are owned by institutional investors. 2.2% of PRA Group shares are owned by insiders. Comparatively, 22.0% of shares of all “Consumer Finance” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares PRA Group and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PRA Group	$1.20 billion	-$305.14 million	3.11
PRA Group Competitors	$3.61 billion	$385.17 million	6.31

PRA Group’s competitors have higher revenue and earnings than PRA Group. PRA Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares PRA Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PRA Group	-19.91%	15.56%	3.18%
PRA Group Competitors	9.83%	-15.77%	2.02%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for PRA Group and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PRA Group	1	3	0	0	1.75
PRA Group Competitors	891	3353	5293	275	2.50

As a group, “Consumer Finance” companies have a potential upside of 19.15%. Given PRA Group’s competitors stronger consensus rating and higher possible upside, analysts plainly believe PRA Group has less favorable growth aspects than its competitors.

Summary

PRA Group competitors beat PRA Group on 10 of the 13 factors compared.

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.