Head-To-Head Analysis: PRA Group (PRAA) and Its Rivals

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PRA Group	12.06%	14.48%	3.03%
PRA Group Competitors	10.34%	-15.82%	1.67%

Analyst Recommendations

This is a breakdown of current ratings for PRA Group and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PRA Group	2	2	0	0	1.50
PRA Group Competitors	896	3369	5300	278	2.50

As a group, “Consumer Finance” companies have a potential upside of 21.01%. Given PRA Group’s peers stronger consensus rating and higher probable upside, analysts plainly believe PRA Group has less favorable growth aspects than its peers.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
PRA Group	$1.20 billion	-$305.14 million	2.89
PRA Group Competitors	$3.64 billion	$385.17 million	4.56

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

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

Volatility & Risk

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

Summary

PRA Group peers beat PRA Group on 9 of the 13 factors compared.

PRA Group Company Profile

PRA Group, Inc. is a global financial services company that purchases and collects portfolios of unpaid and charged-off accounts. Its clients include banks, credit card companies and other lenders seeking to manage delinquent accounts and recover outstanding balances. The company’s services include debt portfolio acquisition and account recovery, with collection approaches that may involve direct customer contact, negotiated repayment arrangements and legal processes, subject to applicable regulations.