PRA Group (NASDAQ: PRAA) is one of 98 public companies in the “Business Support Services” industry, but how does it compare to its rivals? We will compare PRA Group to related businesses based on the strength of its dividends, risk, valuation, institutional ownership, earnings, profitability and analyst recommendations.

Insider and Institutional Ownership

62.9% of shares of all “Business Support Services” companies are held by institutional investors. 2.1% of PRA Group shares are held by insiders. Comparatively, 12.0% of shares of all “Business Support Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for PRA Group and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PRA Group 0 0 3 0 3.00
PRA Group Competitors 735 2089 2674 84 2.38

PRA Group presently has a consensus target price of $38.00, indicating a potential upside of 29.69%. As a group, “Business Support Services” companies have a potential downside of 2.51%. Given PRA Group’s stronger consensus rating and higher possible upside, research analysts plainly believe PRA Group is more favorable than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
PRA Group 9.76% 4.69% 1.41%
PRA Group Competitors -129.10% -181.16% -5.94%

Earnings and Valuation

This table compares PRA Group and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
PRA Group $784.13 million $280.49 million 17.87
PRA Group Competitors $1.11 billion $178.14 million 21.32

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

Volatility & Risk

PRA Group has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, PRA Group’s rivals have a beta of 1.12, meaning that their average stock price is 12% more volatile than the S&P 500.

Summary

PRA Group beats its rivals on 9 of the 13 factors compared.

PRA Group Company Profile

PRA Group, Inc. (PRA Group) is a financial and business services company with operations in the Americas and Europe. The Company’s primary business is the purchase, collection and management of portfolios of nonperforming loans. The Company operates through the account receivables management segment. It also provides fee-based services, such as vehicle location, skip tracing and collateral recovery for auto lenders, government entities and law enforcement; revenue administration, audit and revenue discovery/recovery services for local government entities; class action claims recovery services and purchases; servicing of consumer bankruptcy accounts in the United States, and contingent collections of nonperforming loans in Europe and South America. The Company’s portfolio of nonperforming loans includes a set of accounts that can be categorized by asset type, age and size of account, level of previous collection efforts, payment history, and geography.

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