PRA Group (NASDAQ: PRAA) is one of 99 public companies in the “Business Support Services” industry, but how does it contrast to its competitors? We will compare PRA Group to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

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 9.76% 4.69% 1.41%
PRA Group Competitors -53.40% -160.64% 0.32%

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
PRA Group $784.13 million $280.49 million 17.47
PRA Group Competitors $1.10 billion $177.95 million 22.77

PRA Group’s competitors have higher revenue, but lower 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.

Insider and Institutional Ownership

62.0% of shares of all “Business Support Services” companies are owned by institutional investors. 2.1% of PRA Group shares are owned by company insiders. Comparatively, 12.7% of shares of all “Business Support Services” companies are owned by company 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.

Risk and Volatility

PRA Group has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, PRA Group’s competitors have a beta of 1.13, meaning that their average stock price is 13% more volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PRA Group 3 1 0 0 1.25
PRA Group Competitors 620 1841 2583 62 2.41

PRA Group presently has a consensus target price of $36.00, suggesting a potential upside of 25.65%. As a group, “Business Support Services” companies have a potential downside of 5.25%. Given PRA Group’s higher possible upside, analysts clearly believe PRA Group is more favorable than its competitors.

Summary

PRA Group beats its competitors on 7 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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