OneMain (NYSE:OMF – Get Free Report) and PRA Group (NASDAQ:PRAA – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
Institutional & Insider Ownership
85.8% of OneMain shares are owned by institutional investors. Comparatively, 97.2% of PRA Group shares are owned by institutional investors. 0.3% of OneMain shares are owned by company insiders. Comparatively, 2.2% of PRA Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares OneMain and PRA Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OneMain | 13.43% | 21.97% | 2.69% |
| PRA Group | -19.91% | 15.56% | 3.18% |
Earnings and Valuation
This table compares OneMain and PRA Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OneMain | $5.46 billion | 1.21 | $783.00 million | $6.57 | 8.79 |
| PRA Group | $1.20 billion | 0.63 | -$305.14 million | ($6.73) | -2.97 |
OneMain has higher revenue and earnings than PRA Group. PRA Group is trading at a lower price-to-earnings ratio than OneMain, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
OneMain has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, PRA Group has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for OneMain and PRA Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OneMain | 1 | 3 | 9 | 0 | 2.62 |
| PRA Group | 1 | 3 | 0 | 0 | 1.75 |
OneMain presently has a consensus target price of $66.82, indicating a potential upside of 15.71%. Given OneMain’s stronger consensus rating and higher probable upside, equities research analysts clearly believe OneMain is more favorable than PRA Group.
Summary
OneMain beats PRA Group on 11 of the 14 factors compared between the two stocks.
About OneMain
OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses in the United States. It originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards; optional credit insurance products, including life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. It sells its products through its website. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was founded in 1912 and is based in Evansville, Indiana.
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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