Critical Comparison: Bitcoin Depot (NASDAQ:BTM) & PRA Group (NASDAQ:PRAA)

Bitcoin Depot (NASDAQ:BTM) and PRA Group (NASDAQ:PRAA) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Volatility and Risk

Bitcoin Depot has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, PRA Group has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Insider and Institutional Ownership

9.2% of Bitcoin Depot shares are owned by institutional investors. Comparatively, 97.2% of PRA Group shares are owned by institutional investors. 70.2% of Bitcoin Depot shares are owned by company insiders. Comparatively, 2.0% of PRA Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Bitcoin Depot and PRA Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bitcoin Depot	1.44%	791.02%	9.06%
PRA Group	8.10%	6.52%	1.64%

Valuation & Earnings

This table compares Bitcoin Depot and PRA Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitcoin Depot	$573.70 million	0.18	-$11.69 million	$0.23	6.07
PRA Group	$1.17 billion	0.54	$70.60 million	($8.79)	-1.84

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

Analyst Recommendations

This is a summary of current ratings and target prices for Bitcoin Depot and PRA Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitcoin Depot	1	2	3	1	2.57
PRA Group	1	0	3	1	2.80

Bitcoin Depot currently has a consensus target price of $5.83, suggesting a potential upside of 318.16%. PRA Group has a consensus target price of $25.00, suggesting a potential upside of 54.68%. Given Bitcoin Depot’s higher probable upside, research analysts plainly believe Bitcoin Depot is more favorable than PRA Group.

Summary

PRA Group beats Bitcoin Depot on 8 of the 13 factors compared between the two stocks.

About Bitcoin Depot

Bitcoin Depot Inc. owns and operates a network of cryptocurrency kiosks in North America. Its customers can buy and sell bitcoin, litecoin, and ethereum cryptocurrencies using the BTM kiosk network and other services. The company also engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering, as well as its website through over-the-counter trade. The company is headquartered in Atlanta, Georgia. Bitcoin Depot Inc. is a subsidiary of BT Assets, Inc.

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.